§ 240.36a1-2. Exemption from SIPA for OTC derivatives dealers.
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/us/cfr/t17/s§ 240.36a1-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Preliminary Note: OTC derivatives dealers are a special class of broker-dealers that are exempt from certain broker-dealer requirements, including membership in a self-regulatory organization (§ 240.15b9-2), regular broker-dealer margin rules (§ 240.36a1-1), and application of the Securities Investor Protection Act of 1970 (§ 240.36a1-2). OTC derivative dealers are subject to special requirements, including limitations on the scope of their securities activities (§ 240.15a-1), specified internal risk management control systems (§ 240.15c3-4), recordkeeping obligations (§ 240.17a-3(a)(10)), and reporting responsibilities (§ 240.17a-12).
They are also subject to alternative net capital treatment (§ 240.15c3-1(a)(5)). OTC derivatives dealers, as defined in § 240.3b-12, shall be exempt from the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa through 78lll). \[63 FR 59404, Nov. 3, 1998\]
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§ 240.36a1-2
Exemption from SIPA for OTC derivatives dealers.
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