§ 349.14 Definitions. For purposes of this part— The following terms have the same meaning as in the Commodity Exchange Act: “Affiliated person of a futures commission merchant”; “Associated person”; “Contract of sale”; “Commodity”; “Eligible contract participant”; “Futures commission merchant”; “Security”; and “Security futures product”. *Affiliate* has the same meaning as in § 2(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(k)).
*Commodity Exchange Act* means the Commodity Exchange Act (7 U.S.C. 1 *et seq.*).
*FDIC-supervised insured depository institution* means any insured depository institution for which the Federal Deposit Insurance Corporation is the appropriate Federal banking agency pursuant to § 3(q) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(q).
*Forex* means foreign exchange.
Institution-affiliated party or IAP has the same meaning as in 12 U.S.C. 1813(u)(1), (2), or (3).
Insured depository institution or IDI has the same meaning as in 12 U.S.C. 1813(c)(2).
*Introducing broker* means any person who solicits or accepts orders from a retail forex customer in connection with retail forex transactions.
*Related person,* when used in reference to a retail forex counterparty, means: ( 1 ) Any general partner, officer, director, or owner of ten percent or more of the capital stock of the FDIC-supervised insured depository institution;
( 2 ) An associated person or employee of the retail forex counterparty, if the retail forex counterparty is not an FDIC-supervised insured depository institution;
( 3 ) An IAP, if the retail forex counterparty is an FDIC-supervised insured depository institution; and
( 4 ) Any relative or spouse of any of the foregoing persons, or any relative of such spouse, who shares the same home as any of the foregoing persons.
*Retail forex account* means the account of a retail forex customer, established with an FDIC-supervised insured depository institution, in which retail forex transactions with the FDIC-supervised insured depository institution as counterparty are undertaken, or the account of a retail forex customer that is established in order to enter into such transactions.
*Retail forex account agreement* means the contractual agreement between an FDIC-supervised insured depository institution and a retail forex customer that contains the terms governing the customer's retail forex account with the FDIC-supervised insured depository institution.
*Retail forex business* means engaging in one or more retail forex transactions with the intent to derive income from those transactions, either directly or indirectly.
*Retail forex counterparty* includes, as appropriate: ( 1 ) An FDIC-supervised insured depository institution;
( 2 ) A retail foreign exchange dealer;
( 3 ) A futures commission merchant; and
( 4 ) An affiliated person of a futures commission merchant.
*Retail forex customer* means a customer that is not an eligible contract participant, acting on his, her, or its own behalf and engaging in retail forex transactions.
*Retail forex obligations* means obligations of a retail forex customer with respect to retail forex transactions, including, but not limited to, trading losses, fees, and commissions.
*Retail forex proprietary account* means: a retail forex account carried on the books of an FDIC-supervised insured depository institution for one of the following persons; a retail forex account of which 10 percent or more is owned by one of the following persons; or a retail forex account of which an aggregate of 10 percent or more of which is owned by more than one of the following persons: ( 1 ) The FDIC-supervised insured depository institution;
( 2 ) An officer, director or owner of ten percent or more of the capital stock of the FDIC-supervised insured depository institution; or
( 3 ) An employee of the FDIC-supervised insured depository institution, whose duties include: ( i ) The management of the FDIC-supervised insured depository institution's business;
( ii ) The handling of the FDIC-supervised insured depository institution's retail forex transactions;
( iii ) The keeping of records, including without limitation the software used to make or maintain those records, pertaining to the FDIC-supervised insured depository institution's retail forex transactions; or
( iv ) The signing or co-signing of checks or drafts on behalf of the FDIC-supervised insured depository institution;
( 4 ) A spouse or minor dependent living in the same household as of any of the foregoing persons; or
( 5 ) An affiliate of the FDIC-supervised insured depository institution;
*Retail forex transaction* means an agreement, contract, or transaction in foreign currency, other than an identified banking product or a part of an identified banking product, that is offered or entered into by FDIC-supervised insured depository institution with a person that is not an eligible contract participant and that is: ( 1 ) A contract of sale of a commodity for future delivery or an option on such a contract;
( 2 ) An option, other than an option executed or traded on a national securities exchange registered pursuant to § 6(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78(f)(a)); or
( 3 ) Offered or entered into on a leveraged or margined basis, or financed by an FDIC-supervised insured depository institution, its affiliate, or any person acting in concert with the FDIC-supervised insured depository institution or its affiliate on a similar basis, other than: ( i ) A security that is not a security futures product as defined in § 1a(47) of the Commodity Exchange Act (7 U.S.C. 1a(47)); or
( ii ) A contract of sale that— ( A ) Results in actual delivery within two days; or
( B ) Creates an enforceable obligation to deliver between a seller and buyer that have the ability to deliver and accept delivery, respectively, in connection with their line of business; or
( iii ) An agreement, contract, or transaction that the FDIC determines is not functionally or economically similar to: ( A ) A contract of sale of a commodity for future delivery or an option on such a contract; or
( B ) An option, other than an option executed or traded on a national securities exchange registered pursuant to Section 6(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78(f)(a)).
*Retail forex obligations* means obligations of a retail forex customer with respect to retail forex transactions, including, but not limited to, trading losses, fees, and commissions.
[76 FR 40789, July 12, 2011. Redesignated at 80 FR 74912, Nov. 30, 2015]