Source: https://www.law.cornell.edu/cfr/text/17/240.15a-1
Timestamp: 2017-03-26 17:05:19
Document Index: 140041543

Matched Legal Cases: ['art 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 240']

17 CFR 240.15a-1 - Securities activities of OTC derivatives dealers. | US Law | LII / Legal Information Institute
CFR › Title 17 › Chapter II › Part 240 › Section 240.15a-1 17 CFR 240.15a-1 - Securities activities of OTC derivatives dealers.
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)). This rule 15a-1 uses a number of defined terms in setting forth the securities activities in which an OTC derivatives dealer may engage: “OTC derivatives dealer,” “eligible OTC derivative instrument,” “cash management securities activities,” and “ancillary portfolio management securities activities.” These terms are defined under Rules 3b-12 through 3b-15 ( § 240.3b-12 through § 240.3b-15).
(g) For purposes of this section, the term foreign broker or dealer means any person not resident in the United States (including any U.S. person engaged in business as a broker or dealer entirely outside the United States, except as otherwise permitted by § 240.15a-6) that is not an office or branch of, or a natural person associated with, a registered broker or dealer, whose securities activities, if conducted in the United States, would be described by the definition of “broker” in section 3(a)(4) of the Act ( 15 U.S.C. 78c(a)(4)) or “dealer” in section 3(a)(5) of the Act ( 15 U.S.C. 78c(a)(5)).
(h) For purposes of this section, the term foreign security means any security (including a depositary share issued by a United States bank, provided that the depositary share is initially offered and sold outside the United States in accordance with Regulation S ( 17 CFR 230.901 through 230.904)) issued by a person not organized or incorporated under the laws of the United States, provided the transaction that involves such security is not effected on a national securities exchange or on a market operated by a registered national securities association; or a debt security (including a convertible debt security) issued by an issuer organized or incorporated under the laws of the United States that is initially offered and sold outside the United States in accordance with Regulation S ( 17 CFR 230.901 through 230.904).
[ 63 FR 59396, Nov. 3, 1998]
17 CFR 240.3b-13 — Definition of Eligible OTC Derivative Instrument.
17 CFR 240.3b-14 — Definition of Cash Management Securities Activities.
17 CFR 240.3b-12 — Definition of OTC Derivatives Dealer.
17 CFR 240.15c3-4 — Internal Risk Management Control Systems for OTC Derivatives Dealers.
17 CFR 240.3b-15 — Definition of Ancillary Portfolio Management Securities Activities.