Anggota agen valas

Temui Dealer Forex Dealer Forex dapat didefinisikan dengan deskripsi sebagai berikut: Dealer forex adalah perusahaan atau individu yang mencari uang dari membeli mata uang asing dari satu pihak dan kemudian menjualnya ke yang lain. Dealer valas menerima selisih antara harga beli dan harga jual. Perbedaan ini juga disebut spread. Spread diukur dalam pips. Dealer valuta asing juga dapat didefinisikan sebagai badan keuangan atau institusi yang telah diberi otorisasi dari badan pengatur Forex untuk bertindak sebagai dealer penukaran mata uang asing, berurusan dengan perdagangan mata uang asing. Setiap negara akan memiliki badan pengatur Forex sendiri untuk memastikan bahwa semua perdagangan Forex berada di atas papan dan adil. Di AS, badan pengatur ini dikenal sebagai National Futures Association (NFA). NFA mengatur pasar dealer Forex Forex Amerika dengan mengirimkan pedagang Forex ke kondisi skrining ketat saat mendaftar sebagai pedagang Forex dan menerapkan peraturan Forex saat pedagang disetujui. Pasar valuta asing dilindungi dari kegiatan ilegal, seperti penipuan, dengan menerapkan peraturan ketat pada pedagang Forex. NFA didirikan pada tahun 1982 dan sejak saat itu telah bertanggung jawab atas semua tugas regulasi dan audit perusahaan pedagang penukaran mata uang yang terlibat dalam transaksi Forex atas nama masyarakat umum. Keanggotaan ke NFA bersifat wajib dan ilegal bagi agen Forex resmi manapun untuk berinteraksi dalam bisnis dengan anggota non-NFA. Biaya tahunan untuk menjadi agen Forex di pasar perdagangan Forex bisa sangat mahal. Berbagai biaya harus dibayar setiap tahun agar bisa menjadi dealer resmi Forex. Sejumlah denda juga diberlakukan, bagi para dealer pertukaran mata uang yang tidak membayar biaya tahunan Forex mereka tepat waktu. Broker Forex kebanyakan adalah agen yang melakukan perdagangan mata uang asing atas nama klien mereka, sedangkan pedagang melakukan perdagangan sebagai pokok dan perdagangan valuta asing untuk akunnya sendiri. Penjual valuta asing berbeda dari broker valuta asing sehingga dealer Forex bertindak sebagai principal dalam sebuah transaksi. Dealer Forex bertanggung jawab atas aset dan terkena risiko persediaan. Pialang valuta asing hanya melakukan negosiasi dan memfasilitasi perdagangan atas nama klien. Pialang yang lebih besar akan diperdagangkan baik sebagai broker dan kepala sekolah dan oleh karena itu mereka kadang disebut sebagai brokerer. Dealer valuta asing akan berurusan dengan klien mereka dengan cara yang berbeda, namun semuanya terikat oleh badan pengatur Forex yang sama tinggi. Oleh karena itu, pedagang valuta asing harus bisa memberi Anda kebijakan keuangan secara tertulis. Saat memutuskan dealer Forex, penting untuk melihat pengalamannya, dan biaya. Penting untuk melakukan penelitian yang tepat saat menentukan dealer penukaran mata uang. Ingatlah bahwa menemukan dealer penukaran mata uang dengan kebijakan spread yang bagus dapat menghasilkan hasil yang lebih besar dan bahwa ada banyak dealer penukaran mata uang yang dapat dipilih. Dalam menggunakan situs web ini Anda dianggap telah membaca dan menyetujui persyaratan dan ketentuan berikut: Terminologi berikut Berlaku untuk Syarat dan Ketentuan ini, Pernyataan Privasi dan Pemberitahuan Penolakan dan setiap atau semua Kesepakatan: Klien, Anda dan Anda merujuk kepada Anda, orang yang mengakses situs ini dan menerima persyaratan dan ketentuan Perusahaan. Perusahaan, Kami, Kami dan Kami, mengacu pada Perusahaan kami. Pihak, Pihak, atau Kami, mengacu pada Klien dan diri kita sendiri, atau Klien atau diri kita sendiri. Semua persyaratan mengacu pada penawaran, penerimaan dan pertimbangan pembayaran yang diperlukan untuk melakukan proses bantuan kami kepada Klien dengan cara yang paling tepat, baik melalui rapat formal dengan durasi tetap, atau cara lain, untuk tujuan pertemuan Kebutuhan klien sehubungan dengan penyediaan produk layanan yang dinyatakan oleh Perusahaan, sesuai dengan dan tunduk pada, Hukum Inggris yang berlaku. Setiap penggunaan terminologi di atas atau kata-kata lain dalam huruf kapital tunggal, jamak, kapitalisasi andor heshe atau mereka, dianggap saling dipertukarkan dan oleh karena itu mengacu pada hal yang sama. Kami berkomitmen untuk melindungi privasi Anda. Karyawan yang berwenang dalam perusahaan pada kebutuhan untuk mengetahui dasar hanya menggunakan informasi yang dikumpulkan dari masing-masing pelanggan. Kami terus meninjau sistem dan data kami untuk memastikan layanan terbaik bagi pelanggan kami. Parlemen telah menciptakan pelanggaran khusus atas tindakan yang tidak sah terhadap sistem dan data komputer. Kami akan menyelidiki tindakan semacam itu dengan maksud untuk mengadili dan meminta proses perdata untuk memulihkan kerusakan terhadap mereka yang bertanggung jawab. Kami terdaftar di bawah Undang-Undang Perlindungan Data 1998 dan karena itu, informasi mengenai Klien dan Catatan Klien masing-masing dapat disampaikan ke pihak ketiga. Namun, catatan Klien dianggap rahasia dan oleh karena itu tidak akan diungkapkan ke pihak ketiga manapun, selain Financial Magnates. Jika secara hukum diminta untuk melakukannya kepada pihak yang berwenang. Kami tidak akan menjual, berbagi, atau menyewakan informasi pribadi Anda ke pihak ketiga atau menggunakan alamat e-mail Anda untuk surat yang tidak diminta. Setiap email yang dikirim oleh Perusahaan ini hanya akan terkait dengan penyediaan layanan dan produk yang disepakati. Penolakan Pengecualian dan Keterbatasan Informasi di situs web ini disediakan secara umum. Sejauh diizinkan oleh undang-undang, Perusahaan ini: mengecualikan semua pernyataan dan jaminan yang berkaitan dengan situs web ini dan isinya atau yang mungkin disediakan oleh afiliasi atau pihak ketiga lainnya, termasuk yang terkait dengan ketidakakuratan atau kelalaian di situs web ini. Dan atau literatur Perusahaan dan mengecualikan semua kewajiban atas kerusakan yang timbul dari atau sehubungan dengan penggunaan situs ini oleh Anda. Ini termasuk, namun tidak terbatas, kerugian langsung, kehilangan bisnis atau keuntungan (terlepas dari apakah kerugian dari keuntungan tersebut dapat diraih, muncul dalam keadaan normal atau Anda telah menyarankan Perusahaan ini kemungkinan kemungkinan kerugian tersebut), kerusakan yang disebabkan Ke komputer, perangkat lunak, sistem dan program komputer Anda dan data di atasnya atau kerusakan langsung atau tidak langsung, konsekuensial dan insidentil lainnya. Keuangan Magnates bagaimanapun tidak mengecualikan pertanggungjawaban atas kematian atau cedera pribadi yang disebabkan oleh kelalaiannya. Pengecualian dan batasan di atas berlaku hanya sejauh diizinkan oleh undang-undang. Tidak satu pun hak hukum Anda karena konsumen terpengaruh. Kami menggunakan alamat IP untuk menganalisis tren, mengelola situs, melacak pergerakan pengguna, dan mengumpulkan informasi demografis yang luas untuk penggunaan agregat. Alamat IP tidak terkait dengan informasi identitas pribadi. Selain itu, untuk administrasi sistem, mendeteksi pola penggunaan dan tujuan pemecahan masalah, server web kami secara otomatis mencatat informasi akses standar termasuk jenis browser, akses timesopen mail, URL yang diminta, dan URL rujukan. Informasi ini tidak dibagi dengan pihak ketiga dan hanya digunakan di Perusahaan ini berdasarkan kebutuhan. Setiap informasi yang dapat diidentifikasi secara individu yang terkait dengan data ini tidak akan pernah digunakan dengan cara apa pun yang berbeda dengan yang disebutkan di atas tanpa izin eksplisit Anda. Seperti kebanyakan situs web interaktif, situs web atau ISP Perusahaan ini menggunakan cookies untuk memungkinkan kita mengambil kembali rincian pengguna untuk setiap kunjungan. Cookie digunakan di beberapa area di situs kami untuk memungkinkan fungsi area ini dan kemudahan penggunaan bagi orang-orang yang berkunjung. Tautan ke situs web ini Anda mungkin tidak membuat link ke halaman manapun dari situs ini tanpa persetujuan tertulis dari kami. Jika Anda membuat tautan ke laman situs web ini, Anda melakukannya atas risiko Anda sendiri dan pengecualian dan batasan yang disebutkan di atas akan berlaku untuk penggunaan situs web ini dengan menautkannya. Tautan dari situs web ini Kami tidak memantau atau meninjau isi situs web partys lain yang ditautkan dari situs web ini. Pendapat yang diungkapkan atau materi yang muncul di situs web semacam itu tidak harus dibagi atau disetujui oleh kami dan tidak boleh dianggap sebagai penerbit opini atau materi semacam itu. Perlu diketahui bahwa kami tidak bertanggung jawab atas praktik privasi, atau konten, dari situs-situs ini. Kami mendorong pengguna kami untuk waspada saat mereka meninggalkan situs kami untuk membaca pernyataan privasi dari situs-situs ini. Anda harus mengevaluasi keamanan dan kepercayaan dari situs lain yang terhubung ke situs ini atau diakses melalui situs ini sendiri, sebelum mengungkapkan informasi pribadi kepada mereka. Perusahaan ini tidak akan menerima tanggung jawab apapun atas kehilangan atau kerusakan dengan cara apa pun, entah penyebabnya, akibat dari pengungkapan informasi pribadi Anda kepada pihak ketiga. Hak cipta dan hak kekayaan intelektual relevan lainnya ada pada semua teks yang berkaitan dengan layanan Perusahaan dan konten lengkap dari situs ini. Seluruh hak cipta. Semua materi yang ada di situs ini dilindungi oleh Undang-Undang Hak Cipta Amerika Serikat dan mungkin tidak boleh diproduksi, diproduksi, diedarkan, ditampilkan atau dipublikasikan atau dipublikasikan tanpa izin tertulis dari Financial Magnates. Anda tidak boleh mengubah atau menghapus merek dagang, hak cipta, atau pemberitahuan lainnya dari salinan konten. Semua informasi di halaman ini dapat berubah sewaktu-waktu. Penggunaan situs ini merupakan penerimaan atas persetujuan pengguna kami. Harap baca kebijakan privasi dan sanggahan hukum kami. Perdagangan valuta asing dengan margin membawa tingkat risiko tinggi dan mungkin tidak sesuai untuk semua investor. Tingkat leverage yang tinggi dapat bekerja melawan Anda dan juga untuk Anda. Sebelum memutuskan untuk melakukan perdagangan valuta asing Anda harus mempertimbangkan secara hati-hati tujuan investasi, tingkat pengalaman dan selera risiko Anda. Kemungkinan ada bahwa Anda dapat mempertahankan kehilangan sebagian atau seluruh investasi awal Anda dan oleh karena itu Anda seharusnya tidak menginvestasikan uang yang tidak dapat Anda rugi. Anda harus menyadari semua risiko yang terkait dengan perdagangan valuta asing dan mencari saran dari penasihat keuangan independen jika Anda ragu. Pendapat yang diungkapkan di Financial Magnates adalah pendapat masing-masing penulis dan tidak mewakili pendapat perusahaan atau manajemennya. Keuangan Magnates belum memverifikasi keakuratan atau basis-sebenarnya klaim atau pernyataan yang dibuat oleh penulis independen: kesalahan dan kelalaian mungkin terjadi. Setiap opini, berita, penelitian, analisis, harga atau informasi lain yang terdapat dalam situs ini, oleh Financial Magnates, karyawan, mitra atau kontributornya, diberikan sebagai komentar pasar umum dan bukan merupakan saran investasi. Keuangan Magnates tidak akan bertanggung jawab atas kerugian atau kerusakan, termasuk namun tidak terbatas pada, kehilangan keuntungan, yang mungkin timbul secara langsung atau tidak langsung dari penggunaan atau kepercayaan terhadap informasi tersebut. Masing-masing pihak tidak bertanggung jawab atas kegagalan untuk melakukan kewajiban apapun berdasarkan Persetujuan apapun yang disebabkan oleh sebuah peristiwa di luar kendali partai tersebut termasuk namun tidak terbatas pada Tindakan Tuhan, terorisme, perang, pemberontakan, pemberontakan, pemberontakan , Kerusuhan sipil, tindakan otoritas sipil atau militer, pemberontakan, gempa bumi, banjir atau kejadian alami atau buatan lainnya yang berada di luar kendali kita, yang menyebabkan penghentian sebuah kesepakatan atau kontrak ditandatangani, atau yang dapat diperkirakan secara wajar. Setiap Pihak yang terkena dampak kejadian tersebut harus segera memberitahukan Pihak lainnya yang sama dan harus menggunakan semua upaya yang wajar untuk mematuhi persyaratan dan ketentuan dari suatu Perjanjian yang tercantum di sini. Kegagalan salah satu Pihak untuk menuntut kinerja yang ketat dari setiap ketentuan Perjanjian ini atau Persetujuan apapun atau kegagalan salah satu Pihak untuk menggunakan hak atau upaya yang dengannya, dia atau mereka berhak berdasarkan ketentuan ini tidak merupakan pembebasan daripadanya dan tidak akan menyebabkan Pengurangan kewajiban berdasarkan Perjanjian ini atau Perjanjian apa pun. Tidak ada pengabaian terhadap salah satu ketentuan dalam Perjanjian ini atau Persetujuan apapun yang berlaku kecuali jika dinyatakan secara tegas dan ditandatangani oleh kedua belah pihak. Pemberitahuan Perubahan Perusahaan berhak mengubah kondisi ini dari waktu ke waktu karena sesuai dan Anda terus menggunakan situs ini akan menandakan penerimaan Anda terhadap penyesuaian apapun terhadap persyaratan ini. Jika ada perubahan pada kebijakan privasi kami, kami akan mengumumkan bahwa perubahan ini telah dilakukan di beranda kami dan pada halaman kunci lainnya di situs kami. Jika ada perubahan dalam cara kami menggunakan pelanggan situs kami Informasi yang dapat diidentifikasi secara pribadi, pemberitahuan melalui e-mail atau surat pos akan diberikan kepada mereka yang terkena dampak perubahan ini. Setiap perubahan pada kebijakan privasi kami akan diposkan di situs web kami 30 hari sebelum perubahan ini terjadi. Oleh karena itu Anda disarankan untuk membaca ulang pernyataan ini secara teratur. Syarat dan ketentuan ini merupakan bagian dari Perjanjian antara Klien dan diri kita sendiri. Anda mengakses situs ini dan atau melakukan pemesanan atau Perjanjian menunjukkan pengertian, persetujuan dan penerimaan Anda, Pemberitahuan Penafian dan Syarat dan Ketentuan Lengkap yang tercantum di sini. Hak Konsumen wajib Anda tidak terpengaruh. Finance Magnates 2015 Semua Hak Dilindungi NFA denda anggota agen valas Utah, Interbank FX LLC dan prinsip utamanya 225.000. Lihat keluhan lengkap dan tanggapan Interbank0 Ns denda direktur agen valas Utah, Interbank FX LLC dan prinsipal 225.000 30 Juli Chicago 8211 National Futures Association Michael Greenberg Broker (FX Ritel) Jumat, 31.07.2009 09:54 GMT NFA denda dealer forex Utah Anggota, Interbank FX LLC dan prinsipal 225.000 pada 30 Juli, Chicago 8211 National Futures Association (NFA) telah memerintahkan Interbank FX LLC (Interbank) dan kepala sekolahnya, Todd Crosland untuk bersama-sama membayar denda 225.000. Interbank adalah Futures Commission Merchant and Forex Dealer Member of NFA, terletak di Salt Lake City, Utah. Keputusan tersebut, yang dikeluarkan oleh Komite Perilaku Bisnis NFA8217, didasarkan pada Keluhan NFA yang diajukan pada bulan Juli 2009 dan penawaran penyelesaian diajukan oleh Interbank, Crosland dan Amanda Albretsen, juga merupakan direktur kepatuhan dan mantan direktur Interbank. Komite menemukan bahwa Interbank, Crosland dan Albretsen gagal menerapkan program anti-pencucian uang (AML) dan gagal untuk secara memadai mengawasi sistem perdagangan elektroniknya. Selain itu, Komite menemukan bahwa Interbank, Crosland dan Albretsen gagal untuk secara memadai mengawasi permohonan pengacara non-anggota yang menggunakan materi promosi yang kurang. Komite juga menemukan bahwa Crosland gagal untuk mengawasi kegiatan antarbank8217s. Interbank dan Crosland juga harus menyerahkan NFA dalam 180 hari sebuah tinjauan independen terakhir atas platform perdagangan elektronik yang dilakukan oleh pihak luar untuk memastikan bahwa platform perdagangan elektronik Interbank8217 mematuhi persyaratan NFA. Tuduhan terhadap Albretsen akan tetap terbuka untuk satu tahun dan akan diberhentikan jika Albretsen tidak dikenai biaya oleh NFA karena tidak melakukan pengawasan selama periode satu tahun. Teks lengkap tentang Keluhan dan Keputusan dapat ditemukan di situs NFA8217 (nfa. futures. org) 30 Juli Chicago 8211 National Futures Association (NFA) telah memerintahkan Interbank FX LLC (Interbank) dan prinsipal, Todd Crosland untuk bersama-sama membayar Denda 225.000. Interbank adalah Futures Commission Merchant and Forex Dealer Member of NFA, terletak di Salt Lake City, Utah. Keputusan tersebut, yang dikeluarkan oleh Komite Perilaku Bisnis NFA8217, didasarkan pada Keluhan NFA yang diajukan pada bulan Juli 2009 dan penawaran penyelesaian diajukan oleh Interbank, Crosland dan Amanda Albretsen. Juga direktur kepatuhan dan mantan direktur Interbank. Komite menemukan bahwa Interbank, Crosland dan Albretsen gagal menerapkan program anti-pencucian uang (AML) dan gagal untuk secara memadai mengawasi sistem perdagangan elektroniknya. Selain itu, Komite menemukan bahwa Interbank, Crosland dan Albretsen gagal untuk secara memadai mengawasi permohonan pengacara non-anggota yang menggunakan materi promosi yang kurang. Komite juga menemukan bahwa Crosland gagal untuk mengawasi kegiatan antarbank8217s. Interbank dan Crosland juga harus menyerahkan NFA dalam 180 hari sebuah tinjauan independen terakhir atas platform perdagangan elektronik yang dilakukan oleh pihak luar untuk memastikan bahwa platform perdagangan elektronik Interbank8217 mematuhi persyaratan NFA. Tuduhan terhadap Albretsen akan tetap terbuka untuk satu tahun dan akan diberhentikan jika Albretsen tidak dikenai biaya oleh NFA karena tidak melakukan pengawasan selama periode satu tahun. Teks lengkap tentang Keluhan dan Keputusan dapat ditemukan di situs web NFA8217 (nfa. futures. org) Tertanam di bawah ini adalah keputusan akhir oleh NFA (mohon maaf atas kualitas yang buruk, inilah cara NFA memindai dokumen) dan di bawahnya adalah Apa yang terlihat seperti respon resmi IBFX8217 terhadap thread yang dibuka di Forex Factory. Nama saya Abigail (karyawan IBFX) dan saya ingin mengatasi masalah Anda. Saya berharap tanggapan resmi kami akan membantu membersihkan semuanya untuk Anda: Interbank FX didedikasikan untuk keunggulan dalam memenuhi tanggung jawab kepatuhan kami. Sebagai perusahaan, kami terus meninjau dan memperbaiki kebijakan kepatuhan, prosedur dan pengamanan untuk kepentingan pelanggan kami saat ini dan calon pelanggan. Apalagi pada tahun 2008 Interbank FX direkrut, langsung dari NFA, Direktur Kepatuhan dan Kepatuhan baru. Interbank FX percaya bahwa kami memimpin industri sekarang sesuai dengan peraturan yang berlaku dan secara khusus ingin menyampaikan keluhan yang baru dikeluarkan oleh NFA. Tuduhan tersebut terkandung di dalamnya sebelum merekrut pemimpin tim kepatuhan baru Interbanks dan perubahan signifikan di hampir setiap aspek kebijakan kepatuhan kami. Tidak mengakui atau menolak tuduhan NFA, Interbank FX telah membahas setiap dan semua masalah yang terkandung di dalamnya dan telah menyelesaikan masalah dengan NFA. Secara khusus, FX Interbank ingin menangani tiga item berikut yang terdapat dalam keluhan NFA: 1. Pengawasan Pengawas NON-Member: Selama periode yang disebutkan dalam keluhan NFA, FX Interbank mempertahankan prosedur untuk meninjau semua materi promosi pengacara pihak ketiga dan untuk memperbaiki kekurangan Dalam materi. Antara lain, NFA menuduh dalam pengaduan bahwa Interbank FX gagal memastikan bahwa salah satu pengacara anggota non-NFA-nya, Global Profit Systems International (Global), memiliki materi promosi yang sesuai. Pada bulan November, 2007, Interbank FX menghentikan hubungannya dengan Global ketika gagal memasukkan materi promosinya ke dalam kepatuhan. Kebijakan dan prosedur kepatuhan Interbank FXs sejak saat itu telah diperkuat sehubungan dengan ketegasan yang kami amati tentang materi promosi pengacara dan penegasan pasca review atas rekomendasi kami. Interbank FX mengadopsi sebuah kebijakan pada bulan Desember 2007, untuk menolak berbisnis dengan pengacara A. S. kecuali jika mereka adalah anggota NFA. Interbank FX melakukan bisnis hanya dengan pengacara A. S. yang menjadi anggota NFA dan berusaha menerapkan standar kepatuhan materi promosi secara ketat untuk semua pengacara A. S. dan luar negeri. 2.Anti-Program Pencucian Uang Antara lain, NFA menuduh dalam pengaduan bahwa Interbank FX gagal mengajukan Laporan Aktivitas Mencurigakan (SAR) sebagai tanggapan atas bendera merah dari anggota non-NFA, Pengacara A. Interbank FX menghentikan Pengacara A pada bulan Desember 2007, ketika menjadi sadar bahwa Pengacara A telah menyesatkan perusahaan sehubungan dengan situs web yang dia operasikan. Interbank FX mengajukan laporan SAR-SF dengan FinCEN saat menjadi jelas bagi Interbank FX bahwa laporan semacam itu diperlukan. FX antarbank saat ini menolak untuk melakukan bisnis dengan pengacara A. S. kecuali jika mereka adalah anggota NFA. Interbank FX, tidak mengakui atau menolak tuduhan apa pun dalam pengaduan tersebut, sejak saat ini mengembangkan program AML yang lebih kuat dan ketat dan berusaha menjadi pemimpin dalam kepatuhan AML. 3.Interbank FX Trading System Keluhan NFA menuduh bahwa Interbank FX mengalami banyak kejadian di mana pelanggan mungkin telah dicegah atau dibatasi untuk mengakses sistem perdagangan. Selain itu, NFA menuduh bahwa Interbank FX gagal memberi tahu pelanggan dengan tepat tentang kejadian ini. Selama periode tersebut, Interbank FX memiliki metode yang terbatas untuk mengkomunikasikan gangguan sistem kepada pelanggan. Namun, sejak saat itu, Interbank FX telah mengembangkan dan menerapkan sistem pemberitahuan baru dimana pelanggan diberitahu segera dan efektif terhadap semua gangguan sistem yang berpotensi mempengaruhi perdagangan mereka. Hampir semua insiden yang disebutkan dalam keluhan NFA adalah kejadian yang memerlukan perawatan harian yang diperlukan. Sejak 11 September 2008, pemeliharaan harian ini sekarang dikonsolidasikan ke dalam jendela perawatan pelanggan yang sepenuhnya diungkapkan sesuai dengan standar industri keuangan. Bahkan dengan mempertimbangkan perawatan harian ini, waktu sistem selama periode yang disebutkan dalam keluhan melebihi 99,9. Selain itu, pada tahun 2009, Interbank FX terus menunjukkan efisiensi sistem perdagangannya dan telah berpengalaman 99,99 server up-time (di luar jendela pemeliharaan). Interbank FX, tidak mengakui atau menolak tuduhan apapun dalam keluhan tersebut, telah membahas dan menyempurnakan prosedurnya untuk memastikan kinerja optimal dalam mengelola sistem perdagangan elektronik kami. Interbank FX berkomitmen untuk menjadi pemimpin dalam industri kami untuk keunggulan dalam hal kepatuhan. Ketika kami bergerak maju dari kejadian malang yang menyebabkan keluhan NFA, kami mengucapkan terima kasih kepada NFA karena telah membantu mempromosikan lingkungan perdagangan yang sehat bagi pelanggan dan industri secara keseluruhan. Kami berharap dapat melanjutkan pertumbuhan kami karena Anggota Dealer FOREX Anda sesuai dengan kewajiban kami kepada Anda berdasarkan peraturan NFA dan standar yang lebih ketat yang telah kami tetapkan untuk diri kami sendiri. Panduan Publikasi Investor ke Divisi Pendaftaran Broker-Dealer dan Pasar 1 Sekuritas AS dan Exchange Commission April 2008 Daftar Isi Pendahuluan Siapa yang Diperlukan untuk Mendaftar Siapa quotBrokerquot Siapa yang menjadi quotDealerquot Apa yang Harus Dilakukan Jika Anda Berpikir Anda Mungkin Broker atau Dealer Pialang dan Dealer Umumnya Harus Mendaftar dengan SEC quotAssociated Personsquot of a Broker - Dealer Intrastate Broker-Dealers Broker-Dealers yang Membatasi Bisnis mereka ke Dealer Broker Efek yang Dikecualikan dan Dikecualikan Harus Daftarkan Sebelum Menjual Efek yang Tidak terdaftar - Termasuk Penawaran Penempatan Pribadi (atau Regulasi D) Pembebasan Emiten Persyaratan Penawaran Perantara Broker Asing Mengenai Pialang dan Dealer Pemerintah Dan Surat Berharga Kota, termasuk Perjanjian Repurchase Agreements Special Aturan yang Berlaku untuk Bank dan Lembaga Keuangan Lainnya Lembaga Perasuransian Perumahan Real Estat Efek dan Pialang Real EstatApartemen Hubungan Perantara Pedagang dengan Grup Affinity Cara Mendaftar Sebagai Bentuk Pedagang Pialang Keanggotaan BD SRO Persyaratan Keanggotaan SIPC Orang Terkait Pendaftar Penandatanganan Broker-Dealer Penarikan Dari Pendaftaran Pembatalan Pendaftaran Keamanan Berjangka Melakukan Peraturan Broker-Dealer Ketentuan Antifraud Tugas Fair Dealing Persyaratan Kesesuaian Kewajiban Pelaksanaan Terbaik Konfirmasi Nasabah Peraturan Pengungkapan Ketentuan Pembatasan Kredit Perdagangan Short Selling (Regulasi SHO) Selama Penawaran (Peraturan M) Pembatasan pada Pembatasan Perdagangan Orang Dalam Perdagangan Transaksi Swasta Analis dan Peraturan Perdagangan AC oleh Anggota Bursa, Pialang dan Dealer Memperluas Kredit atas Peraturan Isu Baru Peraturan Pelaporan Pesanan NMS ATS: Sistem Perdagangan Perantara Pedagang Saham Penny Stock Aturan Privasi Konsumen Informasi Keuangan (Regulasi SP) Penasihat Investasi Pendaftaran Arbitrase Tanggung Jawab Keuangan Broker-Dealer Aturan Modal Bersih Penggunaan Saldo Pelanggan Proteksi Pelanggan Diperlukan Buku, Rekaman dan Laporan Penilaian Resiko Persyaratan Persyaratan Lainnya Pemeriksaan dan Pemeriksaan Program Efek yang Hilang dan Dicuri Persyaratan Sidik Jari Penggunaan Media Elektronik Oleh Broker-Dealer Tanda Tangan Elektronik Program Anti Pencucian Uang Kantor Pengendalian Aset Asing Rencana Kesinambungan Bisnis Dimana Mendapatkan Informasi Lebih Lanjut I. PENDAHULUAN Tindakan Securities Exchange Act of 1934 (quotExchange Actquot atau quotActquot) mengatur cara pasar sekuritas negara dan Pialang dan dealer beroperasi. Kami telah menyiapkan panduan ini untuk merangkum beberapa ketentuan penting dalam Undang-undang dan peraturannya. Anda akan menemukan informasi tentang apakah Anda perlu mendaftar sebagai agen broker dan bagaimana Anda bisa mendaftar, serta standar perilaku dan peraturan tanggung jawab keuangan yang harus diikuti oleh pialang pialang. PERHATIAN mdash PASTIKAN ANDA MENGIKUTI SEMUA HUKUM DAN ATURAN Meskipun panduan ini menyoroti beberapa ketentuan dalam Undang-undang dan peraturan kami, ini tidak komprehensif. Pialang dan dealer, dan orang-orang yang terkait, harus mematuhi semua persyaratan yang berlaku, termasuk peraturan dari Komisi Sekuritas dan Bursa AS (quotSECquot atau quotCommissionquot), serta persyaratan dari setiap organisasi pengaturan mandiri dimana broker dan dealer berada, Dan bukan hanya yang diringkas di sini. Staf SEC siap menjawab pertanyaan Anda dan membantu Anda mematuhi peraturan kami. Setelah membaca panduan ini, jika Anda memiliki pertanyaan, jangan ragu untuk menghubungi Kantor Interpretasi dan Panduan di (202) 551-5777 (perdagangan dan perdagangan e-mail danmarketssec. gov) atau Kantor Wilayah SEC di wilayah Anda. Anda akan menemukan daftar nomor telepon yang berguna di akhir panduan ini, atau di situs web SEC39 di sec. govcontact. shtml. Anda mungkin ingin berkonsultasi dengan pengacara pribadi yang mengetahui undang-undang sekuritas federal, untuk memastikan bahwa Anda mematuhi semua undang-undang dan peraturan. Staf SEC tidak dapat bertindak sebagai pengacara perorangan atau agen broker. Sementara staf berusaha memberikan panduan melalui telepon kepada individu yang sedang melakukan penyelidikan, panduannya bersifat informal dan tidak mengikat. Panduan formal dapat dicari melalui penyelidikan tertulis yang sesuai dengan pedoman SEC39 untuk permintaan tanpa tindakan, interpretif, dan pengecualian. II. SIAPA YANG DIBUTUHKAN UNTUK MENDAFTAR Sebagian besar kuartalan dan kuadran harus mendaftar ke SEC dan bergabung dengan organisasi pengatur hak, quot atau SRO. Bagian ini mencakup faktor-faktor yang menentukan apakah seseorang adalah broker atau dealer. Ini juga menggambarkan jenis broker dan dealer yang tidak perlu mendaftar dengan SEC. Organisasi pengaturan diri dijelaskan pada Bagian III di bawah ini. Catatan tentang bank: Exchange Act juga berisi ketentuan khusus yang berkaitan dengan aktivitas perantara dan transaksi bank. Lihat Bagian 3 (a) (4) (B) dan 3 (a) (5) (C) dan ketentuan terkait, dan konsultasikan dengan penasihat hukum. Aspek aktivitas agen bank didiskusikan dalam publikasi yang diterbitkan oleh Divisi Perdagangan dan Pasar SEC39, yang berjudul quotStaff Compliance Guide to Bank pada Dealer Legal Exceptions and Rules, quot yang tersedia di situs web SEC39 di: sec. govdivisionsmarketregbankdealerguide. htm. Kegiatan pialang bank dibahas dalam Peraturan R, yang diadopsi secara bersama oleh Komisi dan Dewan Gubernur Sistem Federal Reserve. Lihat Exchange Act Release No. 56501 (24 September 2007) sec. govrulesfinal200734-56501.pdf. A. Siapa yang dimaksud dengan quotBrokerquot Bagian 3 (a) (4) (A) Undang-undang tersebut umumnya mendefinisikan sebuah kuotensiquot secara luas sebagai orang yang terlibat dalam bisnis yang mempengaruhi transaksi sekuritas untuk kepentingan orang lain. Terkadang Anda dapat dengan mudah menentukan apakah seseorang adalah broker. Misalnya, orang yang melakukan transaksi untuk orang lain di bursa efek jelas adalah broker. Namun, situasi lain kurang jelas. Misalnya, masing-masing individu dan bisnis berikut mungkin perlu mendaftar sebagai broker, bergantung pada sejumlah faktor: quotfinders, quot quot broker bisnis, quot dan individu atau entitas lain yang terlibat dalam kegiatan berikut: Menemukan investor atau pelanggan, Membuat rujukan ke, atau membelah komisi dengan broker-dealer terdaftar, perusahaan investasi (atau reksadana, termasuk hedge fund) atau perantara sekuritas lainnya Menemukan klien perbankan investasi untuk pialang terdaftar Temukan investor untuk quotissuersquot (entitas yang menerbitkan sekuritas), bahkan dalam Kapasitas konsultan masuk ke dalam, atau mencari investor untuk, modal ventura atau pemodelan kuotot, termasuk penempatan pribadi Menemukan pembeli dan penjual bisnis (yaitu kegiatan yang berkaitan dengan merger dan akuisisi di mana sekuritas) penasihat investasi dan konsultan keuangan pialang asing yang tidak dapat diandalkan Pada Aturan 15a-6 berdasarkan Undang-Undang (dibahas di bawah ini ) Orang-orang yang mengoperasikan atau mengendalikan platform elektronik atau platform lainnya untuk memperdagangkan orang-orang sekuritas yang memasarkan kepentingan investasi real estat, seperti kepentingan sewa guna usaha, yaitu orang-orang sekuritas yang bertindak sebagai agen penawaran untuk penempatan pribadi orang-orang sekuritas yang pasar atau efeknya Transaksi dalam produk asuransi yang bersifat sekuritas, seperti anuitas variabel, atau produk investasi lainnya yang merupakan sekuritas yang mempengaruhi transaksi efek untuk rekening orang lain dengan biaya tertentu, walaupun orang tersebut adalah teman atau anggota keluarga yang memberikan layanan pendukung kepada Pialang-pialang terdaftar dan orang-orang yang bertindak sebagai kontraktor yang bebas kontrak, namun bukan orang yang terkait dengan kuota dari agen perantara (untuk informasi tentang orang yang terkait dengan kutipan, lihat di bawah). Untuk menentukan apakah salah satu individu ini (atau orang lain atau bisnis) adalah broker, kami melihat aktivitas yang benar-benar dilakukan orang atau bisnis itu. Anda dapat menemukan analisis berbagai aktivitas dalam keputusan pengadilan federal dan surat tindakan dan interpretasi kita sendiri. Berikut adalah beberapa pertanyaan yang harus Anda tanyakan untuk menentukan apakah Anda bertindak sebagai broker: Apakah Anda berpartisipasi dalam bagian penting dari transaksi efek, termasuk permintaan, negosiasi, atau pelaksanaan transaksi Apakah kompensasi Anda untuk partisipasi dalam transaksi tergantung Atau terkait dengan, hasil atau ukuran transaksi atau kesepakatan Apakah Anda menerima komisi tambahan, seperti biaya 12b-1 Apakah Anda menerima kompensasi terkait transaksi lainnya Apakah Anda terlibat dalam bisnis yang mempengaruhi atau memfasilitasi sekuritas Transaksi Apakah Anda menangani sekuritas atau dana pihak lain sehubungan dengan transaksi sekuritas Jawaban kuotifikasi untuk setiap pertanyaan ini mengindikasikan bahwa Anda mungkin perlu mendaftar sebagai broker. B. Siapa yang quotDealerquot Tidak seperti broker, yang bertindak sebagai agen, dealer bertindak sebagai principal. Bagian 3 (a) (5) (A) Undang-undang tersebut secara umum mendefinisikan kuotsi penawaran sebagai: setiap orang yang menjalankan bisnis untuk membeli dan menjual sekuritas untuk rekeningnya sendiri, melalui broker atau lainnya. Definisi quotdealerquot tidak termasuk seorang penunjuk kata, yaitu seseorang yang membeli dan menjual sekuritas untuk akunnya sendiri, baik secara individu maupun secara fidusia, namun bukan sebagai bagian dari bisnis reguler. Individu yang membeli dan menjual sekuritas untuk diri mereka umumnya dianggap pedagang dan bukan dealer. Terkadang Anda dapat dengan mudah mengetahui apakah seseorang adalah agen. Misalnya, perusahaan yang mengiklankan secara terbuka bahwa itu membuat pasar sekuritas jelas merupakan agen. Situasi lain bisa jadi kurang jelas. Misalnya, masing-masing individu dan bisnis berikut mungkin perlu mendaftar sebagai dealer, tergantung pada sejumlah faktor: orang yang memegang dirinya sebagai bersedia untuk membeli dan menjual keamanan tertentu secara terus menerus seseorang yang menjalankan Sesuai dengan perjanjian repurchase atau orang yang menerbitkan atau berasal dari sekuritas yang juga dia beli dan jual. Berikut adalah beberapa pertanyaan yang harus Anda tanyakan untuk menentukan apakah Anda bertindak sebagai penyalur: Apakah Anda mengiklankan atau membiarkan orang lain tahu bahwa Anda berada dalam bisnis untuk membeli dan menjual sekuritas Apakah Anda berbisnis dengan publik (baik ritel maupun institusional? ) Apakah Anda membuat pasar atau mengutip harga untuk pembelian dan penjualan satu atau lebih sekuritas Apakah Anda berpartisipasi dalam kuotot kuotot atau memberi efek rahasia Apakah Anda memberikan layanan kepada investor, seperti menangani uang dan surat berharga, memberikan kredit, Atau memberikan saran investasi Apakah Anda menulis kontrak derivatif yang merupakan sekuritas Jawaban kuotomatis untuk setiap pertanyaan ini mengindikasikan bahwa Anda mungkin perlu mendaftar sebagai dealer. C. Apa yang Harus Dilakukan Jika Anda Berpikir Anda Mungkin Broker atau Dealer Jika Anda melakukan, atau mungkin melakukan, aktivitas broker atau dealer, Anda harus mencari tahu apakah Anda perlu mendaftar. Informasi tentang proses registrasi agen broker disediakan di bawah ini. Jika Anda tidak yakin, Anda mungkin ingin meninjau interpretasi SEC, berkonsultasi dengan penasihat pribadi, atau mintalah saran dari Divisi Perdagangan dan Pasar SEC39 dengan menghubungi (202) 551-5777 atau dengan mengirim e-mail ke tradingandmarketssec. gov . (Harap pastikan untuk menyertakan nomor telepon Anda.) Catatan: Jika Anda akan bertindak sebagai quotbrokerquot atau quotdealer, Anda tidak boleh melakukan bisnis sekuritas sampai Anda terdaftar dengan benar. Jika Anda sudah berkecimpung dalam bisnis dan belum terdaftar, Anda harus menghentikan semua aktivitas sampai Anda terdaftar dengan benar. Untuk informasi lebih lanjut, lihat Bagian II. D dan Bagian III di bawah ini. D. Pialang dan Dealer Umumnya Harus Mendaftar dengan SEC Bagian 15 (a) (1) Undang-undang tersebut pada umumnya membuat haram bagi broker atau dealer manapun untuk menggunakan kiriman (atau sarana perdagangan interstate lainnya, seperti telepon, faksimili , Atau Internet) untuk mengutip setiap transaksi, atau untuk mendorong atau mencoba mendorong pembelian atau penjualan, sekuritas apapun kecuali jika broker atau dealer terdaftar di Komisi sesuai dengan Bagian 15 (b) Undang-undang tersebut. Ada beberapa pengecualian terhadap peraturan umum yang kami bahas di bawah ini. Selain itu, kami membahas persyaratan pendaftaran khusus yang berlaku untuk broker-dealer sekuritas pemerintah dan kota, termasuk perjanjian pembelian kembali, di bawah ini. 1. quotAssociated Personsquot dari Broker-Dealer Kami memanggil individu-individu yang bekerja untuk orang-orang yang terdaftar sebagai agen broker yang terdaftar. Ini adalah kasus apakah individu tersebut adalah karyawan, kontraktor independen, atau bekerja dengan agen broker. Orang-orang ini mungkin juga disebut broker barang atau perwakilan yang terdaftar. Meskipun orang-orang yang terkait biasanya tidak perlu mendaftar secara terpisah dengan SEC, mereka harus diawasi dengan benar oleh agen broker yang saat ini terdaftar. Mereka mungkin juga harus mendaftar ke organisasi pengaturan sendiri dimana majikan mereka adalah anggota mdash misalnya, Otoritas Regulasi Industri Keuangan, Inc. (quotFINRAquot) (fka National Association of Securities Dealers, Inc. (quotNASDquot)) atau Sebuah bursa efek nasional. Sejauh orang yang terkait terlibat dalam kegiatan sekuritas di luar pengawasan pialang broker mereka, mereka harus mendaftar secara terpisah sebagai brokerer. Bagian III, di bawah ini, memberikan pembahasan bagaimana cara mendaftar sebagai broker-dealer. Kami tidak membedakan antara karyawan dan pihak terkait lainnya untuk tujuan hukum sekuritas. Pialang-pedagang harus mengawasi kegiatan sekuritas personil mereka terlepas dari apakah mereka dianggap sebagai pegawai biasa atau kontraktor yang dapat dikendalikan sesuai dengan yang ditetapkan dalam undang-undang negara. Lihat . Misalnya, dalam soal William V. Giordano. Securities Exchange Act Release No. 36742 (19 Januari 1996). Undang-undang tersebut juga tidak mengizinkan entitas yang tidak terdaftar untuk menerima pendapatan komisi atas nama perwakilan terdaftar. Misalnya, orang yang terkait tidak dapat membuat entitas terpisah untuk menerima cek komisi. Entitas yang tidak terdaftar yang menerima pendapatan komisi dalam situasi ini harus mendaftar sebagai agen broker. Lihat . Misalnya, Wolff Juall Investments, LLC (17 Mei 2005). Dalam keadaan tertentu, entitas yang tidak terdaftar dapat terlibat dalam layanan administrasi penggajian yang melibatkan pialang. Lihat . Misalnya, surat re: ADP TotalSource, Inc. (4 Desember 2007). Dalam keadaan seperti itu, pialang broker biasanya mempekerjakan dan mengawasi semua aspek pekerjaan karyawan dan menggunakan administrator penggajian dan tunjangan hanya sebagai sarana untuk memusatkan layanan kepegawaian. 2. Intrastate Broker-Dealers Broker-dealer yang melakukan semua bisnisnya di satu negara tidak harus mendaftar ke SEC. (Pendaftaran negara adalah hal lain lihat Bagian III di bawah ini.) Pengecualian yang diberikan untuk aktivitas agen broker intrastate sangat sempit. Untuk memenuhi syarat, semua aspek dari semua transaksi harus dilakukan di dalam batas satu negara bagian. Artinya, tanpa registrasi SEC, broker-dealer tidak dapat berpartisipasi dalam transaksi yang dilakukan di bursa efek nasional. Penyedia broker yang jika tidak memenuhi persyaratan pengecualian agen perantara intrastate tidak akan berhenti memenuhi syarat untuk pengecualian agen broker intrastate semata-mata karena memiliki situs web yang dapat dilihat oleh orang luar negara, asalkan Broker-dealer mengambil tindakan yang dirancang secara wajar untuk memastikan bisnisnya tetap eksklusif. Langkah-langkah ini dapat mencakup penggunaan penafian yang secara jelas menunjukkan bahwa bisnis pialang pialang secara eksklusif bersifat intrastate dan bahwa agen broker hanya dapat bertindak untuk atau dengan, dan memberikan layanan agen broker kepada, seseorang di negara bagiannya, selama Broker-dealer tidak memberikan layanan broker-dealer kepada orang-orang yang menunjukkannya, atau bahwa agen broker memiliki alasan untuk percaya, bukan di negara bagian broker-dealer tempat tinggal. Langkah-langkah ini tidak dimaksudkan untuk menjadi eksklusif. Pialang perantara dapat menerapkan langkah-langkah lain yang dirancang secara wajar untuk memastikan bahwa ia tidak menyediakan layanan agen perantara kepada orang-orang yang tidak berada dalam status yang sama dengan broker-dealer. Namun, bisnis perantara tidak akan secara eksklusif terpengaruh jika menjual sekuritas atau memberikan layanan perantara agen perantara kepada orang lain yang menunjukkan bahwa itu adalah, atau bahwa agen broker memiliki alasan untuk percaya, tidak berada dalam negara agen perantara Tempat tinggal Untuk informasi tambahan mengenai penggunaan Internet oleh pedagang perantara intrastate, lihat sec. govrulesfinal201633-10238.pdf. Sebuah kata tentang sekuritas kota dan pemerintah. Tidak ada pengecualian intrastate dari pendaftaran untuk dealer sekuritas kota atau pialang sekuritas pemerintah dan dealer. 3. Pialang-Dealer yang Membatasi Bisnis mereka dengan Efek yang Dikecualikan dan Dikecualikan Penyalur broker yang bertransaksi hanya di surat kabar komersial, bankir39 akseptasi, dan tagihan komersial tidak perlu mendaftar ke SEC berdasarkan Bagian 15 (b) atau bagian lainnya. Dari UU Di sisi lain, orang-orang yang bertransaksi hanya dengan sekuritas tertentu yang dikecualikan, seperti yang ditentukan dalam Bagian 3 (a) (12) Undang-Undang, tidak harus mendaftar berdasarkan Bagian 15 (b), namun mungkin harus mendaftar berdasarkan ketentuan lain. Dari UU Misalnya, beberapa agen perantara sekuritas pemerintah, yang merupakan sekuritas yang dapat dikecualikan, harus mendaftarkan diri sebagai pialang sekuritas pemerintah atau dealer berdasarkan Bagian 15C Undang-undang, seperti yang dijelaskan pada Bagian II. E, di bawah ini. 4. Pialang-Pedagang Harus Mendaftar Sebelum Menjual Efek yang Tidak Terdaftar ndash Termasuk Penempatan Pribadi (atau Penawaran Regulasi D) Sekuritas yang dijual dalam transaksi yang dibebaskan dari pendaftaran berdasarkan Securities Act of 1933 (the quota1933 Actquot) belum tentu merupakan sekuritas keamanan yang dapat dikecualikan di bawah Exchange Act. Misalnya, seseorang yang menjual sekuritas yang dibebaskan dari pendaftaran berdasarkan Peraturan D Undang-Undang 1933 tetap harus mendaftar sebagai agen broker. Dengan kata lain, agen penawaran tidak dapat dikecualikan dari registrasi agen broker. 5. Emiten quotExemptionquot dan Orang Terkait Emiten (Peraturan 3a4-1) Emiten pada umumnya tidak boleh disebut broker karena mereka menjual sekuritas untuk akun mereka sendiri dan bukan untuk akun orang lain. Apalagi, emiten umumnya bukan saham biasa karena mereka tidak membeli dan menjual sekuritas untuk rekening mereka sendiri sebagai bagian dari bisnis reguler. Emiten yang kegiatannya melampaui penjualan sekuritas mereka sendiri, bagaimanapun, perlu mempertimbangkan apakah mereka perlu mendaftar sebagai brokerer. Ini termasuk emiten yang membeli sekuritas dari investor, juga emiten yang mengoperasikan pasar secara efektif dengan sekuritas atau sekuritas yang memiliki fitur atau persyaratan dapat berubah atau diubah. Pembebasan yang disebut emiten tidak berlaku bagi personil perusahaan yang secara rutin menjalankan bisnis efek transaksi efek untuk perusahaan atau perusahaan terkait (seperti mitra umum yang mencari investor dalam kemitraan terbatas). Karyawan dan orang-orang terkait lainnya dari penerbit yang membantu menjual sekuritasnya mungkin merupakan pialang saham, terutama jika mereka membayar untuk menjual sekuritas ini dan hanya memiliki sedikit tugas lainnya. Exchange Act Rule 3a4-1 mengatur bahwa orang yang terkait (atau karyawan) dari penerbit yang berpartisipasi dalam penjualan sekuritas emiten tidak perlu mendaftar sebagai agen broker jika orang tersebut, pada saat diikutsertakan: (1) Tidak dikenakan diskualifikasi quotstatutory, seperti yang didefinisikan dalam Bagian 3 (a) (39) Undang-Undang (2) tidak dikompensasikan dengan pembayaran komisi atau imbalan lainnya yang secara langsung atau tidak langsung diperoleh dari transaksi sekuritas (3) tidak terkait Orang dari broker atau dealer dan (4) membatasi aktivitas penjualannya sebagaimana diatur dalam peraturan. Beberapa emiten menawarkan program reinvestasi dan pembelian saham dividen. Dalam kondisi tertentu, penerbit dapat membeli dan menjual sekuritasnya sendiri melalui program reinvestasi dividen atau pembelian saham tanpa mendaftar sebagai brokerer. Kondisi ini, sehubungan dengan permintaan, biaya dan pengeluaran, dan penanganan peserta39 dana dan surat berharga, dijelaskan dalam Pelepasan Undang-Undang Efek No. 35041 (1 Desember 1994), 59 FR 63393 (quot1994 STA Letterquot). Meskipun Peraturan M 2 menggantikan Peraturan 10b-6 dan menggantikan STA Letter 1994, posisi staf yang diambil dalam surat ini mengenai penerapan Bagian 15 (a) dari Exchange Act tetap berlaku. Lihat 17 CFR 242.102 (c) dan Securities Exchange Act Release No. 38067 (20 Desember 1996), 62 FR 520, 532 n.100 (3 Januari 1997). 6. Pembebasan Perantara Pedagang Valuta Asing (Peraturan 15a-6) SEC pada umumnya menggunakan pendekatan teritorial dalam menerapkan persyaratan pendaftaran kepada operasi pialang internasional. Dengan pendekatan ini, semua broker-dealer yang beroperasi secara fisik di Amerika Serikat yang mendorong atau mencoba untuk menginduksi transaksi efek harus mendaftar ke SEC, walaupun kegiatan mereka ditujukan hanya kepada investor asing di luar Amerika Serikat. Selain itu, pialang-pialang asing yang, dari luar Amerika Serikat, mendorong atau mencoba untuk menginduksi transaksi efek oleh orang lain di Amerika Serikat, atau menggunakan sarana atau sarana perdagangan interstate Amerika Serikat untuk tujuan ini, juga Harus mendaftar Ini termasuk penggunaan internet untuk menawarkan sekuritas, mengumpulkan transaksi efek, atau mengiklankan layanan investasi kepada orang-orang A. S. Lihat Securities Exchange Act Release No. 39779 (23 Maret 1998) sec. govrulesinterp33-7516.htm. Pialang-pialang asing yang membatasi aktivitas mereka kepada mereka yang diizinkan berdasarkan Peraturan 15a-6 Undang-Undang, bagaimanapun, dapat dibebaskan dari pendaftaran agen perantara A. S.. Pialang-pialang asing yang ingin mengandalkan pembebasan ini harus meninjau kembali Securities Exchange Act Release No. 27017 (berlaku 15 Agustus 1989), 54 FR 30013, untuk menentukan apakah memenuhi persyaratan dalam Peraturan 15a-6. Lihat pula surat pernyataan ulang: Aktivitas Efek dari Dealer Asing Terafiliasi A. S. (9 April dan 28 April 1997). Selain itu, pada bulan April 2005, Divisi Regulasi Pasar mengeluarkan tanggapan atas pertanyaan yang sering diajukan mengenai Peraturan 15a-6 sehubungan dengan Peraturan AC. Lihat sec. govdivisionsmarketregmregacfaq0803.htmpartb. (Peraturan AC didiskusikan pada Bagian V. B di bawah ini.) E. Persyaratan Mengenai Pialang dan Dealer Efek Pemerintah dan Kota, termasuk Perjanjian Repurchase Broker-dealer yang membatasi aktivitas mereka ke sekuritas pemerintah atau kota memerlukan pendaftaran khusus. Mereka yang membatasi aktivitas mereka terhadap sekuritas pemerintah tidak perlu mendaftar sebagai agen perantara kuotensi penawaran umum berdasarkan Bagian 15 (b) Undang-undang tersebut. Dealer broker tujuan umum yang melakukan bisnis sekuritas pemerintah, bagaimanapun, harus mencatat kegiatan ini pada Formulir BD mereka. (Formulir BD dibahas di bawah ini.) Semua perusahaan yang merupakan pialang atau dealer di sekuritas pemerintah harus mematuhi peraturan yang diadopsi oleh Sekretaris Departemen Keuangan, serta peraturan SEC. Perusahaan yang membatasi bisnis sekuritas mereka untuk membeli dan menjual sekuritas kota untuk rekening mereka sendiri (dealer sekuritas kota) harus mendaftar sebagai broker-dealer dengan tujuan umum. Namun, jika entitas tersebut adalah bank atau memenuhi persyaratan pengecualian intrastate yang dibahas di Bagian II. D.2. Di atas, mereka harus mendaftar sebagai dealer sekuritas kota. Broker sekuritas kota (selain bank) harus mendaftar sebagai broker-dealer dengan tujuan umum kecuali mereka memenuhi syarat untuk pengecualian intrastate. Lihat Bagian II. D.2 di atas. Perusahaan yang menjalankan buku perjanjian repurchase yang sesuai atau pinjaman saham lainnya dianggap sebagai dealer. Karena sebuah kuota yang menjalankan dealerquot menahan diri karena bersedia membeli dan menjual sekuritas, dan karena itu terlibat dalam bisnis jual beli sekuritas, ia harus mendaftar sebagai agen broker. F. Aturan Khusus yang Berlaku untuk Bank dan Lembaga Keuangan sejenis Catatan: Bank, gudang, dan lembaga keuangan lainnya harus sadar bahwa Komisi telah menerapkan peraturan yang mungkin memengaruhi mereka. Lihat Regulasi R, Securities Exchange Act Release No. 34-56501 (24 September 2007), 72 FR 56514 (3 Oktober 2007), sec. govrulesfinal200734-56501.pdf dan Securities Exchange Act Release No. 34-56502 ( 24 September 2007) 72 FR 56562 (3 Oktober 2007), sec. govrulesfinal200734-56502.pdf. Bank Sebelum diberlakukannya quotGramm-Leach-Bliley Actquot (quotGLBAquot) pada tahun 1999, bank A. S. dikecualikan dari definisi quotbrokerquot dan quotdealerquot berdasarkan Undang-undang. GLBA mengubah Exchange Act, dan bank sekarang memiliki pengecualian dan pengecualian yang ditargetkan dari pendaftaran agen broker. Saat ini, sebagai hasil dari pembuatan peraturan Komisi, bank-bank tengah menjalani fase-dalam periode untuk mematuhi undang-undang yang baru. Sejak 1 Oktober 2003, bank-bank yang membeli dan menjual sekuritas harus mempertimbangkan apakah mereka memiliki kuota dalam undang-undang sekuritas federal. Divisi Perdagangan dan Pasar telah mengeluarkan panduan kepatuhan khusus untuk bank-bank yang berjudul quotStaff Compliance Guide kepada Bank pada Aturan dan Aturan Pengadaan Pedagang, yang tersedia di situs web SEC39 di: sec. govdivisionsmarketregbankdealerguide. htm. Kegiatan pialang bank dibahas dalam Peraturan R, yang diadopsi secara bersama oleh Komisi dan Dewan Gubernur Sistem Federal Reserve. Lihat Exchange Act Release No. 56501 (24 September 2007) (yang dapat ditemukan di sec. govrulesfinal200734-56501.pdf). Pengecualian dan pengecualian bank hanya berlaku untuk bank, dan bukan kepada entitas terkait. Penting untuk dicatat bahwa pengecualian yang berlaku untuk bank berdasarkan Exchange Act, sebagaimana telah diubah oleh GLBA, tidak berlaku untuk entitas lain, termasuk anak perusahaan dan afiliasi bank, yang bukan merupakan bank. Dengan demikian, anak perusahaan dan afiliasi bank yang terlibat dalam kegiatan agen broker diharuskan mendaftar sebagai agen broker di bawah Undang-Undang. Selain itu, bank yang bertindak sebagai dealer sekuritas kota atau sebagai pialang sekuritas pemerintah atau dealer terus diwajibkan untuk mendaftar berdasarkan Undang-undang. Hemat Menurut undang-undang, penghematan (asosiasi tabungan) memiliki status yang sama dengan bank, dan mungkin memanfaatkan pengecualian dan pengecualian yang sama dari registrasi agen broker sebagai bank. (Untuk informasi lebih lanjut, lihat Panduan Kepatuhan kuartil kepada Bank tentang Ketentuan dan Aturan Pengadaan Perusahaan Dealer, seperti yang disebutkan di atas.) Seperti halnya bank, penting untuk dicatat bahwa pengecualian dan pengecualian yang berlaku untuk penghematan tidak berlaku untuk entitas lain, termasuk anak perusahaan dan Afiliasi yang tidak hemat. Dengan demikian, anak perusahaan dan afiliasi dari barang-barang bekas yang terlibat dalam kegiatan agen broker diminta untuk mendaftar sebagai agen broker di bawah Undang-Undang. Serikat Kredit dan Lembaga Keuangan quotNetworkingquot Arrangements. Pengecualian dan pengecualian yang berlaku untuk bank-bank di bawah Exchange Act tidak berlaku untuk jenis lembaga keuangan lainnya, seperti credit unions. Staf SEC, bagaimanapun, telah mengizinkan lembaga keuangan tertentu, seperti credit unions, untuk menyediakan sekuritas bagi nasabah mereka tanpa mendaftar sebagai brokerer. This is done through quotnetworkingquot arrangements, where an affiliated or third-party broker-dealer provides brokerage services for the financial institution39s customers, according to conditions stated in no-action letters and NASD Rule 2350. Under a networking arrangement, financial institutions can share in the commissions generated by their referred customers, under certain conditions. The financial institution engaging in such networking must be in strict compliance with applicable law and Commission staff guidance. See . for example, letter re: Chubb Securities Corporation (November 24, 1993) and NASD Rule 2350 (applicable to broker-dealers that enter into networking arrangements with banks, thrifts, and credit unions). G. Insurance Agency Networking The SEC staff has permitted insurance agencies to make insurance products that are also securities (such as variable annuities) available to their customers without registering as broker-dealers under certain conditions. This again is done through quotnetworkingquot arrangements, where an affiliated or third-party broker-dealer provides brokerage services for the insurance agency39s customers, according to conditions stated in no-action letters. These arrangements are designed to address the difficulties of dual state and federal laws applicable to the sale of these products. Through networking arrangements, insurance agencies can share in the commissions generated by their referred customers under certain conditions. Insurance agencies engaging in such networking must be in strict compliance with applicable law and Commission staff guidance. Insurance companies should consult the letter re: First of America Brokerage Services, Inc. (September 28, 1995). Those interested in structuring such an arrangement should contact private counsel or the SEC staff for further information. Notably, insurance networking arrangements are limited to insurance products that are also securities. They do not encompass sales of mutual funds and other securities that do not present the same regulatory difficulties. See letter re: Lincoln Financial Advisors Corp. (February 20, 1998). H. Real Estate Securities and Real Estate BrokersAgents The offer of real estate as such, without any collateral arrangements with the seller or others, does not involve the offer of a security. When the real estate is offered in conjunction with certain services, however, it may constitute an investment contract, and thus, a security. See generally . Securities Act Release No. 5347 (Jan. 4, 1973) (providing guidelines as to the applicability of the federal securities laws to offers and sales of condominiums or units in a real estate development). There is no general exception from the broker-dealer registration requirements for licensed real estate brokers or agents who engage in the business of effecting transactions in real estate securities. In the past, the Division staff has granted no-action relief from the registration requirements to licensed real estate personnel that engage in limited activities with respect to the sale of condominium units coupled with an offer or agreement to perform or arrange certain rental or other services for the purchaser. The relief provided in these letters is limited solely to their facts and should not be relied upon for activities relating to sales of other types of real estate securities, including tenants-in-common interests in real property. See generally . NASD Notice to Members 05-18, finra. orgsitesdefaultfilesNoticeDocumentp013455.pdf (addressing tenants-in-common interests in real property). I. Broker-Dealer Relationships with Affinity Groups Broker-dealers may enter into arrangements to offer services to members of certain non-profit groups, including civic organizations, charities, and educational institutions that rely upon private donations. These arrangements are subject to certain conditions to ensure that the organizations, or quotaffinity groups, quot do not develop a salesman39s stake with respect to the sale of securities. See . for example, letter re: Attkisson, Carter amp Akers (June 23, 1998). AKU AKU AKU. HOW TO REGISTER AS A BROKER-DEALER A broker-dealer may not begin business until: it has properly filed Form BD, and the SEC has granted its registration it has become a member of an SRO it has become a member of SIPC, the Securities Investor Protection Corporation it complies with all applicable state requirements and its quotassociated personsquot have satisfied applicable qualification requirements. A. Form BD If a broker-dealer does not qualify for any of the exceptions or exemptions outlined in the sections above, it must register with the Commission under Section 15(b) of the Act. Broker-dealers register by filing an application on Form BD, which you may obtain from the SEC39s webpage at sec. govaboutformsformbd. pdf or through the SEC39s Publications Office at (202) 551-4040. You also use Form BD to: apply for membership in an SRO, such as FINRA or a registered national securities exchange give notice that you conduct government securities activities or apply for broker-dealer registration with each state in which you plan to do business. Form BD asks questions about the background of the broker-dealer and its principals, controlling persons, and employees. The broker-dealer must meet the statutory requirements to engage in a business that involves high professional standards, and quite often includes the more rigorous responsibilities of a fiduciary. To apply for registration, you must file one executed copy of Form BD through the Central Registration Depository (quotCRDquot), which is operated by FINRA. (The only exception is for banks registering as municipal securities dealers, which file Form MSD directly with the SEC and with their appropriate banking regulator.) Form BD contains additional filing instructions. The SEC does not charge a filing fee, but the SROs and the states may. Applicants that reside outside the U. S. must also appoint the SEC as agent for service of process using a standard form. Incomplete applications are not considered quotfiledquot and will be returned to the applicant for completion and re-submission. Within 45 days of filing a completed application, the SEC will either grant registration or begin proceedings to determine whether it should deny registration. An SEC registration may be granted with the condition that SRO membership must be obtained. The SROs have independent membership application procedures and are not required to act within 45 days of the filing of a completed application. In addition, state registrations may be required. A broker-dealer must comply with relevant state law as well as federal law and applicable SRO rules. Timeframes for registration with individual states may differ from the federal and SRO timeframes. As such, when deciding to register as a broker-dealer, it is important to plan for the time required for processing Federal, state, and SRO registration or membership applications. Duty to update Form BD. A registered broker-dealer must keep its Form BD current. Thus, it must promptly update its Form BD by filing amendments whenever the information on file becomes inaccurate or incomplete for any reason. Prohibited Broker-Dealer Names. Title 18, Section 709 of the United States Code makes it a criminal offense to use the words quotNational, quot quotFederal, quot quotUnited States, quot quotReserve, quot or quotDeposit Insurancequot in the name of a person or organization in the brokerage business, unless otherwise allowed by federal law. Further, a broker-dealer name that is otherwise materially misleading would become subject to scrutiny under Exchange Act Section 10(b), and Rule 10b-5 thereunder, the general antifraud rules, and any other applicable provisions. B. SRO Membership (Section 15(b)(8) and Rule 15b9-1) Before it begins doing business, a broker-dealer must become a member of an SRO. SROs assist the SEC in regulating the activities of broker-dealers. FINRA and the national securities exchanges are all SROs. If a broker-dealer restricts its transactions to the national securities exchanges of which it is a member and meets certain other conditions, it may be required only to be a member of those exchanges. If a broker-dealer effects securities transactions other than on a national securities exchange of which it is a member, however, including any over-the-counter business, it must become a member of FINRA, unless it qualifies for the exemption in Rule 15b9-1. FINRA39s webpage at finra. org provides detailed information on the FINRA membership process. You may also wish to consult the web pages of the individual exchanges for additional information. Firms that engage in transactions in municipal securities must also comply with the rules of the Municipal Securities Rulemaking Board, or MSRB. The MSRB is an SRO that makes rules governing transactions in municipal securities, but, unlike other SROs, it does not enforce compliance with its rules. Compliance with MSRB rules is monitored and enforced by FINRA and the SEC (in the case of broker-dealers), and the Federal bank regulators and the SEC (in the case of banks). You may wish to consult the MSRB39s website at msrb. org for additional information, or you can call the MSRB at (703) 797-6600. C. SIPC Membership Every registered broker-dealer must be a member of the Securities Investor Protection Corporation, or SIPC, unless its principal business is conducted outside of the United States or consists exclusively of the sale or distribution of investment company shares, variable annuities, or insurance. Each SIPC member must pay an annual fee to SIPC. SIPC insures that its members39 customers receive back their cash and securities in the event of a member39s liquidation, up to 500,000 per customer for cash and securities. (Claims for cash are limited to 100,000.) For further information, contact SIPC, 805 15th St. NW, Suite 800, Washington, DC 20005. Telephone: (202) 371-8300, fax: (202) 371-6728, or visit SIPC39s website at sipc. org . D. State Requirements Every state has its own requirements for a person conducting business as a broker-dealer within that state. Each state39s securities regulator can provide you with information about that state39s requirements. You can obtain contact information for these regulators from the North American Securities Administrators Association, Inc. (NASAA), 750 First Street, NE, Suite 1140, Washington, DC 20002. Telephone: (202) 737-0900, or visit NASAA39s website at nasaa. org . E. Associated Persons (Section 3(a)(18) Rule 15b7-1) The Act defines an quotassociated personquot of a broker-dealer as any partner, officer, director, branch manager, or employee of the broker-dealer, any person performing similar functions, or any person controlling, controlled by, or under common control with, the broker-dealer. A broker-dealer must file a Form U-4 with the applicable SRO for each associated person who will effect transactions in securities when that person is hired or otherwise becomes associated. Form U-4 is used to register individuals and to record these individuals39 prior employment and disciplinary history. An associated person who effects or is involved in effecting securities transactions also must meet qualification requirements. These include passing an SRO securities qualification examination. Many individuals take the comprehensive quotSeries 7quot exam. If individuals engage only in activities involving sales of particular types of securities, such as municipal securities, direct participation programs (limited partnerships) or mutual funds, they may wish to take a specialized examination focused on that type of security, instead of the general securities examination. There is also a special exam for assistant representatives, whose activities are limited to accepting unsolicited customer orders for execution by the firm. Supervisory personnel, and those who engage in specialized activities such as options trading, must take additional exams that cover those areas. These examinations require the Series 7 exam as a prerequisite. You can obtain copies of Form U-4, as well as information on securities qualification examinations, from an SRO. FINRA39s website at finra. org contains detailed information and guidance for individuals who wish to obtain a series license through FINRA. Also note that individual states have their own licensing and registration requirements, so you should consult with the applicable state securities regulators for further information. Note: If you hold a series license, you must be properly associated with a registered broker-dealer to effect securities transactions. It is not sufficient merely to hold a series license when engaging in securities business. If you hold a series license and wish to start an independent securities business, or otherwise wish to effect securities transactions outside of an quotassociated personquot relationship, you would first need to register as a broker-dealer. F. Successor Broker-Dealer Registration (Rules 15b1-3, 15Ba2-4, and 15Ca2-3) A successor broker-dealer assumes substantially all of the assets and liabilities, and continues the business, of a registered predecessor broker-dealer. A successor broker-dealer must file a new Form BD (or, in special instances, amend the predecessor broker-dealer39s Form BD) within 30 days after such succession. The filing should indicate that the applicant is a successor. See Securities Exchange Act Release No. 31661 (December 28, 1992), 58 FR 7, which is available on the SEC39s website at: sec. govrulesinterp199234-31661.pdf. See also, the instructions to Form BD . G. Withdrawal from Registration (Rule 15b6-1) Cancellation of Registration When a registered broker-dealer stops doing business, it must file a Form BDW (sec. govaboutformsformbdw. pdf ) to withdraw its registration with the SEC and with the states and SROs of which it is a member. This form requires the broker-dealer to disclose the amount of any funds or securities it owes customers, and whether it is the subject of any proceedings, unsatisfied judgments, liens, or customer claims. These disclosures help to ensure that a broker-dealer39s business is concluded in an orderly manner and that customers39 funds and securities are protected. In most cases, a broker-dealer must also file a final FOCUS report. Form BDW may also be used by a broker-dealer to withdraw from membership with particular SROs, or to withdraw from registration with particular states, without withdrawing all of its registrations and memberships. Form BDW is not considered quotfiledquot unless it is deemed complete by the SEC and the SRO that reviews the filing. The SEC may also cancel a broker-dealer39s registration if it finds that the firm is no longer in existence or has ceased doing business as a broker-dealer. IV. SECURITY FUTURES Security futures, which are contracts of sale for future delivery of a single security or a narrow-based security index, are regulated as both securities by the SEC and as futures by the Commodity Futures Trading Commission (quotCFTCquot). As a result, firms that conduct business in security futures must be registered with both the SEC and the CFTC. Federal law permits firms already registered with either the SEC or the CFTC to register with the other agency, for the limited purpose of trading security futures, by filing a notice. Specifically, firms registered as general purpose broker-dealers under Section 15(b) of the Act may quotnoticequot register with the CFTC. Likewise, futures commission merchants and introducing brokers registered with the CFTC may notice register with the SEC. (Section 15(b)(12) of the Act provides a limited exception to this notice registration requirement for certain natural persons who are members of security futures exchanges). However, futures commission merchants or introducing brokers that conduct a business in securities other than security futures must be registered as general-purpose broker-dealers. For more information on this topic, See Exchange Act Release No. 44730 (effective August 27, 2001), 66 FR 45138, and 66 FR 43080 (effective September 17, 2001). V. CONDUCT REGULATION OF BROKER-DEALERS Broker-dealers, like other securities market participants, must comply with the general quotantifraudquot provisions of the federal securities laws. Broker-dealers must also comply with many requirements that are designed to maintain high industry standards. We discuss some of these provisions below. A. Antifraud Provisions (Sections 9(a), 10(b), and 15(c)(1) and (2)) The quotantifraudquot provisions prohibit misstatements or misleading omissions of material facts, and fraudulent or manipulative acts and practices, in connection with the purchase or sale of securities. 3 While these provisions are very broad, the Commission has adopted rules, issued interpretations, and brought enforcement actions that define some of the activities we consider manipulative, deceptive, fraudulent, or otherwise unlawful. 4 Broker-dealers must conduct their activities so as to avoid these kinds of practices. 1. Duty of Fair Dealing Broker-dealers owe their customers a duty of fair dealing. This fundamental duty derives from the Act39s antifraud provisions mentioned above. Under the so-called quotshinglequot theory, by virtue of engaging in the brokerage profession ( e. g. . hanging out the broker-dealer39s business sign, or quotshinglequot), a broker-dealer represents to its customers that it will deal fairly with them, consistent with the standards of the profession. Based on this important representation, the SEC, through interpretive statements and enforcement actions, and the courts, through case law, have set forth over time certain duties for broker-dealers. These include the duties to execute orders promptly, disclose certain material information ( i. e. . information the customer would consider important as an investor), charge prices reasonably related to the prevailing market, and fully disclose any conflict of interest. SRO rules also reflect the importance of fair dealing. For example, FINRA members must comply with NASD39s Rules of Fair Practice. These rules generally require broker-dealers to observe high standards of commercial honor and just and equitable principles of trade in conducting their business. The exchanges and the MSRB have similar rules. 2. Suitability Requirements Broker-dealers generally have an obligation to recommend only those specific investments or overall investment strategies that are suitable for their customers. The concept of suitability appears in specific SRO rules such as NASD Rule 2310 and has been interpreted as an obligation under the antifraud provisions of the federal securities laws. Under suitability requirements, a broker-dealer must have an quotadequate and reasonable basisquot for any recommendation that it makes. Reasonable basis suitability, or the reasonable basis test, relates to the particular security or strategy recommended. Therefore, the broker-dealer has an obligation to investigate and obtain adequate information about the security it is recommending. A broker-dealer also has an obligation to determine customer-specific suitability. In particular, a broker-dealer must make recommendations based on a customer39s financial situation, needs, and other security holdings. This requirement has been construed to impose a duty of inquiry on broker-dealers to obtain relevant information from customers relating to their financial situations and to keep such information current. SROs consider recommendations to be unsuitable when they are inconsistent with the customer39s investment objectives. 3. Duty of Best Execution The duty of best execution, which also stems from the Act39s antifraud provisions, requires a broker-dealer to seek to obtain the most favorable terms available under the circumstances for its customer orders. This applies whether the broker-dealer is acting as agent or as principal. The SRO rules also include a duty of best execution. For example, FINRA members must use quotreasonable diligencequot to determine the best market for a security and buy or sell the security in that market, so that the price to the customer is as favorable as possible under prevailing market conditions. 4. Customer Confirmation Rule (Rule 10b-10 and MSRB rule G-15) A broker-dealer must provide its customers, at or before the completion of a transaction, with certain information, including: the date, time, identity, price, and number of shares involved its capacity (agent or principal) and its compensation (for agency trades, compensation includes its commission and whether it receives payment for order flow 5 and for principal trades, mark-up disclosure may be required) the source and amount of any third party remuneration it has received or will receive 6 other information, both general (such as, if the broker-dealer is not a SIPC member) and transaction-specific (such as the yield, in most transactions involving debt securities). A broker-dealer may also be obligated under the antifraud provisions of the Act to disclose additional information to the customer at the time of his or her investment decision. 5. Disclosure of Credit Terms (Rule 10b-16) Broker-dealers must notify customers purchasing securities on credit about the credit terms and the status of their accounts. A broker-dealer must establish procedures for disclosing this information before it extends credit to a customer for the purchase of securities. A broker-dealer must give the customer this information at the time the account is opened, and must also provide credit customers with account statements at least quarterly. 6. Restrictions on Short Sales (Regulation SHO) A quotshort salequot is generally a sale of a security that the seller doesn39t own or for which the seller delivers borrowed shares. Regulation SHO was adopted in 2004 to update short sale regulation in light of numerous market developments since short sale regulation was first adopted in 1938. Compliance with Regulation SHO began on January 3, 2005. Some of the goals of Regulation SHO include: Establishing uniform quotlocatequot and quotclose-outquot requirements in order to address problems associated with failures to deliver, including potentially abusive quotnakedquot short selling. Locate Requirement: Regulation SHO requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security. This quotlocatequot must be made and documented prior to effecting the short sale. Market makers engaged in bona fide market making are exempted from the quotlocatequot requirement. quotClose-outquot Requirement: Regulation SHO imposes additional delivery requirements on broker-dealers for securities in which there are a relatively substantial number of extended delivery failures at a registered clearing agency (quotthreshold securitiesquot). For instance, with limited exception, Regulation SHO requires brokers and dealers that are participants of a registered clearing agency to take action to quotclose-outquot failure-to-deliver positions (quotopen failsquot) in threshold securities that have persisted for 13 consecutive settlement days. Closing out requires the broker or dealer to purchase securities of like kind and quantity. Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker) may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as the quotpre-borrowingquot requirement). Creating uniform order marking requirements for sales of all equity securities. This means that a broker-dealer must mark orders as quotlongquot or quotshort. quot For further information, please see the adopting release for Regulation SHO, as well as Frequently Asked Questions, Key Points, and other related materials at sec. govspotlightshortsales. htm . 7. Trading During an Offering (Regulation M) Regulation M is designed to protect the integrity of the securities trading market as an independent pricing mechanism by governing the activities of underwriters, issuers, selling security holders, and other participants in connection with a securities offering. These rules are aimed at preventing persons having an interest in an offering from influencing the market price for the offered security in order to facilitate a distribution. The adopting release for Regulation M is available at sec. govrulesfinal34-38067.txt . Rule 101 of Regulation M generally prohibits underwriters, broker-dealers and other distribution participants from bidding for, purchasing, or attempting to induce any person to bid for or purchase, any security which is the subject of a distribution until the applicable restricted period has ended. An offering39s quotrestricted periodquot begins either one or five business days (depending on the trading volume value of the offered security and the public float value of the issuer) before the day of the offering39s pricing and ends upon completion of the distribution. Rule 101 contains various exceptions that are designed to permit an orderly distribution of securities and limit disruption in the market for the securities being distributed. For example, underwriters can continue to trade in actively-traded securities of larger issuers (securities with an average daily trading volume, or ADTV, value of 1 million or more and whose issuers have a public float value of at least 150 million). In addition, the following activities, among others, may be excepted from Rule 101, if they meet specified conditions: disseminating research reports making unsolicited purchases purchasing a group, or quotbasketquot of 20 or more securities exercising options, warrants, rights, and convertible securities effecting transactions that total less than 2 of the security39s ADTV and effecting transactions in securities sold to quotqualified institutional buyers. quot Rule 102 of Regulation M prohibits issuers, selling security holders, and their affiliated purchasers from bidding for, purchasing, or attempting to induce any person to bid for or purchase, any security which is the subject of a distribution until after the applicable restricted period. Rule 103 of Regulation M governs passive market making by broker-dealers participating in an offering of a Nasdaq security. Rule 104 of Regulation M governs stabilization transactions, syndicate short covering activity, and penalty bids. Rule 105 of Regulation M prevents manipulative short sales prior to pricing an offering by prohibiting the purchase of offering securities if a person sold short the security that is the subject of the offering during the Rule 105 restricted period. The rule contains exceptions for bona fide purchases, separate accounts, and investment companies. For frequently asked questions about Regulation M, see Staff Legal Bulletin No. 9 at sec. govinterpslegalmrslb9.htm . 8. Restrictions on Insider Trading The SEC and the courts interpret Section 10(b) and Rule 10b-5 under the Act to bar the use by any person of material non-public information in the purchase or sale of securities, whenever that use violates a duty of trust and confidence owed to a third party. Section 15(f) of the Act specifically requires broker-dealers to have and enforce written policies and procedures reasonably designed to prevent their employees from misusing material non-public information. Because employees in the investment banking operations of broker-dealers frequently have access to material non-public information, firms need to create procedures designed to limit the flow of this information so that their employees cannot use the information in the trading of securities. Broker-dealers can use these information barriers as a defense to a claim of insider trading. Such procedures typically include: training to make employees aware of these restrictions employee trading restrictions physical barriers isolation of certain departments and limitations on investment bank proprietary trading. 7 9. Restrictions on Private Securities Transactions NASD Rule 3040 provides that quotno person associated with a member shall participate in any manner in a private securities transactionquot except in accordance with the provisions of the rule. To the extent that any such transactions are permitted under the rule, prior to participating in any private securities transaction, the associated person must provide written notice to the member firm as described in the rule. If compensation is involved, the member firm must approve or disapprove the proposed transaction, record it in its books and records, and supervise the transaction as if it were executed on behalf of the member firm. Other conditions may also apply. In addition, private securities transactions of an associated person may be subject to an analysis under Exchange Act Section 10(b) and Rule 10b-5, as well as the broker-dealer supervisory provisions of Section 15(f) (described in Part V. A.8, above) and Section 15(b)(4)(E), and other relevant statutory or regulatory provisions. B. Analysts and Regulation AC Regulation AC (or Regulation Analyst Certification) requires brokers, dealers, and persons associated with brokers or dealers that publish, distribute, or circulate research reports to include in those reports a certification that the views expressed in the report accurately reflect the analyst39s personal views. The report must also disclose whether the analyst received compensation for the views expressed in the report. If the analyst has received related compensation, the broker, dealer, or associated person must disclose its amount, source, and purpose. Regulation AC applies to all brokers and dealers, as well as to those persons associated with a broker or dealer that fall within the definition of quotcovered person. quot Regulation AC also requires that broker-dealers keep records of analyst certifications relating to public appearances. In addition to Commission rules, analyst conduct is governed by SRO rules, such as NASD Rule 2711 and NYSE Rule 472. The SRO rules impose restrictions on analyst compensation, personal trading activities, and involvement in investment banking activities. The SRO rules also include disclosure requirements for research reports and public appearances. For further information, including investor guidance, SEC releases, and SRO rules, see sec. govdivisionsmarketregsecuritiesanalysts. htm. In addition, staff responses to frequently asked questions are available at sec. govdivisionsmarketregmregacfaq0803.htm . C. Trading by Members of Exchanges, Brokers and Dealers (Section 11(a)) Broker-dealers that are members of national securities exchanges are subject to additional regulations regarding transactions they effect on exchanges. For example, except under certain conditions, they generally cannot effect transactions on exchanges for their own accounts, the accounts of their associated persons, or accounts that they or their associated persons manage. Exceptions from this general rule include transactions by market makers, transactions routed through other members, and transactions that yield to other orders. Exchange members may wish to seek guidance from their exchange regarding these provisions. D. Extending Credit on New Issues Disclosure of Capacity as Broker or Dealer (Section 11(d)) Section 11(d)(1) of the Act generally prohibits a broker-dealer that participates in the distribution of a new issue of securities from extending credit to customers in connection with the new issue during the distribution period and for 30 days thereafter. Sales by a broker-dealer of mutual fund shares and variable insurance product units are deemed to constitute participation in the distribution of a new issue. Therefore, purchase of mutual fund shares or variable product units using credit extended or arranged by the broker-dealer during the distribution period is a violation of Section 11(d)(1). However, Exchange Act Rule 11d1-2 permits a broker-dealer to extend credit to a customer on newly sold mutual fund shares and variable insurance product units after the customer has owned the shares or units for 30 days. Section 11(d)(2) of the Act requires a broker-dealer to disclose in writing, at or before the completion of each transaction with a customer, whether the broker-dealer is acting in the capacity of broker or dealer with regard to the transaction. E. Regulation NMS Regulation NMS addresses four interrelated topics that are designed to modernize the regulatory structure of the U. S. equity markets: (1) order protection, (2) intermarket access, (3) sub-penny pricing, and (4) market data. The quotOrder Protection Rulequot requires trading centers to establish, maintain, and enforce written policies and procedures reasonably designed to prevent the execution of trades at prices inferior to protected quotations displayed by other trading centers, subject to an applicable exception. To be protected, a quotation must be immediately and automatically accessible. The quotAccess Rulequot requires fair and non-discriminatory access to quotations, establishes a limit on access fees to harmonize the pricing of quotations across different trading centers, and requires each national securities exchange and national securities association to adopt, maintain, and enforce written rules that prohibit their members from engaging in a pattern or practice of displaying quotations that lock or cross automated quotations. The quotSub-Penny Rulequot prohibits market participants from accepting, ranking, or displaying orders, quotations, or indications of interest in a pricing increment smaller than a penny, except for orders, quotations, or indications of interest that are priced at less than 1.00 per share. The quotMarket Data Rulesquot update the requirements for consolidating, distributing, and displaying market information. In addition, amendments to the joint industry plans for disseminating market information modify the formulas for allocating plan revenues among the self-regulatory organizations and broaden participation in plan governance. Regulation NMS also updates and streamlines the existing Exchange Act rules governing the national market system previously adopted under Section 11A of the Exchange Act, and consolidates them into a single regulation. F. Order Execution Obligations (Rules 602-604 of Regulation NMS) Broker-dealers that are exchange specialists or Nasdaq market makers must comply with particular rules regarding publishing quotes and handling customer orders. These two types of broker-dealers have special functions in the securities markets, particularly because they trade for their own accounts while also handling orders for customers. These rules, which include the quotQuote Rulequot and the quotLimit Order Display Rule, quot increase the information that is publicly available concerning the prices at which investors may buy and sell exchange-listed and Nasdaq National Market System securities. The Quote Rule requires specialists and market makers to provide quotation information to their self-regulatory organization for dissemination to the public. The quote information that the specialist or market maker provides must reflect the best prices at which he is willing to trade (the lowest price the dealer will accept from a customer to sell the securities and the highest price the dealer will pay a customer to purchase the securities). A specialist or market maker may still trade at better prices in certain private trading systems, called electronic communications networks, or quotECNs, quot without publishing an improved quote. This is true only when the ECN itself publishes the improved prices and makes those prices available to the investing public. Thus, the Quote Rule ensures that the public has access to the best prices at which specialists and market makers are willing to trade even if those prices are in private trading systems. Limit orders are orders to buy or sell securities at a specified price. The Limit Order Display Rule requires that specialists and market makers publicly display certain limit orders they receive from customers. If the limit order is for a price that is better than the specialist39s or market maker39s quote, the specialist or market maker must publicly display it. The rule benefits investors because the publication of trading interest at prices that improve specialists39 and market makers39 quotes present investors with improved pricing opportunities. G. Regulation ATS: Broker-Dealer Trading Systems Regulation ATS (17 CFR 242.300 et seq.) provides a means for broker-dealers to operate automated trading platforms, to collect and execute orders in securities electronically, without registering as a national securities exchange under Section 6 of the Exchange Act or as an exempt exchange pursuant to Section 5 of the Act. For purposes of the regulation, an alternative trading system or ATS is any organization, association, person, group of persons, or system that constitutes, maintains, or provides a marketplace or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions commonly performed by a stock exchange as defined in Rule 3b-16 under the Exchange Act. See 17 CFR 242.300. Further, for purposes of the regulation, an ATS may not set rules governing the conduct of subscribers (other than with respect to the use of the particular trading system), or discipline subscribers other than by exclusion from trading. To the extent that an ATS or the sponsoring broker-dealer seeks to establish conduct or disciplinary rules, the entity may be required to register as a national securities exchange or obtain a Commission exemption from exchange registration based on limited trading volume. In order to acquire the status of an ATS, a firm must first be registered as a broker-dealer, and it must file an initial operation report with respect to the trading system on Form ATS at least 20 days before commencing operation. The initial operation report must be accurate and kept current. The Commission does not issue approval orders for Form ATS filings however, the Form ATS is not considered filed unless it complies with all applicable requirements under the Regulation. Regulation ATS contains provisions concerning the system39s operations, including: fair access to the trading system fees charged the display of orders and the ability to execute orders system capacity, integrity and security record keeping and reporting and procedures to ensure the confidential treatment of trading information. An ATS must file with the Division of Trading and Markets quarterly reports regarding its operations on Form ATS-R. An ATS must also comply with any applicable SRO rules and with state laws relating to alternative trading systems and relating to the offer or sale of securities or the registration or regulation of persons or entities effecting securities transactions. Finally, an ATS may not use in its name the word quotexchange, quot or terms similar to the word quotexchange, quot such as the term quotstock market. quot See 17 CFR 242.301. For further information on the operation and regulation of alternative trading systems, see the adopting release for Regulation ATS at sec. govrulesfinal34-40760.txt . H. Penny Stock Rules (Rules 15g-2 through 15g-9, Schedule 15G) Most broker-dealers that effect transactions in quotpenny stocksquot have certain enhanced suitability and disclosure obligations to their customers. 8 A penny stock is generally defined as any equity security other than a security that: (a) is an NMS stock ( See Rule 600(b)(47)) listed on a quotgrandfatheredquot national securities exchange, (b) is an NMS stock listed on a national securities exchange or an automated quotation system sponsored by a registered national securities association (including Nasdaq) that satisfies certain minimum quantitative listing standards, (c) has a transaction price of five dollars or more, (d) is issued by a registered investment company or by the Options Clearing Corporation, (e) is a listed security futures product, or (f) is a security whose issuer has met certain net tangible assets or average revenues ( See Rule 3a51-1). Penny stocks include the equity securities of private companies with no active trading market if they do not qualify for one of the exclusions from the definition of penny stock. Before a broker-dealer that does not qualify for an exemption 9 may effect a solicited transaction in a penny stock for or with the account of a customer it must: (1) provide the customer with a risk disclosure document, as set forth in Schedule 15G, and receive a signed and dated acknowledgement of receipt of that document from the customer ( See Rule 15g-2) (2) approve the customer39s account for transactions in penny stocks, provide the customer with a suitability statement, and receive a signed a dated copy of that statement from the customer and (3) receive the customer39s written agreement to the transaction ( See Rule 15g-9). The broker-dealer also must wait at least two business days after sending the customer the risk disclosure document and the suitability statement before effecting the transaction. In addition, Exchange Act Rules 15g-3 through 15g-6 generally require a broker-dealer to give each penny stock customer: information on market quotations and, where appropriate, offer and bid prices the aggregate amount of any compensation received by the broker-dealer in connection with such transaction the aggregate amount of cash compensation that any associated person of the broker-dealer, who is a natural person and who has communicated with the customer concerning the transaction at or prior to the customerrsquos transaction order, other than a person whose function is solely clerical or ministerial, has received or will receive from any source in connection with the transaction and monthly account statements showing the market value of each penny stock held in the customerrsquos account. I. Privacy of Consumer Financial Information (Regulation S-P) Broker-dealers, including foreign broker-dealers registered with the Commission and unregistered broker-dealers in the United States, must comply with Regulation S-P, ( See 17 CFR Part 248) even if their consumers are non-U. S. persons or if they conduct their activities through non-U. S. offices or branches. Regulation SP generally requires a broker-dealer to provide its customers with initial, annual and revised notices containing specified information about the broker-dealer39s privacy policies and practices. These notices must be clear and conspicuous, and must accurately reflect the broker-dealer39s policies and practices. See 17 CFR 248.4, 248.5, 248.6 and 248.8. Before disclosing nonpublic personal information about a consumer to a nonaffiliated third party, a broker-dealer must first give a consumer an opt-out notice and a reasonable opportunity to opt out of the disclosure. See 17 CFR 248.7 and 248.10. There are exceptions from these notice and opt-out requirements for disclosures to other financial institutions under joint marketing agreements and to certain service providers. See 17 CFR 248.13. There also are exceptions for disclosures made for purposes such as maintaining or servicing accounts, and disclosures made with the consent or at the direction of a consumer, or for purposes such as protecting against fraud, reporting to consumer reporting agencies, and providing information to law enforcement agencies. See 17 CFR 248.14 and 248.15. Regulation SP also imposes limits on the re-disclosure and re-use of information, and on sharing account number information with nonaffiliated third parties for use in telemarketing, direct mail marketing and email marketing. See 17 CFR 248.11 and 248.12. In addition, it includes a safeguards rule that requires a broker-dealer to adopt written policies and procedures for administrative, technical, and physical safeguards to protect customer records and information. See 17 CFR 248.30(a). Further, it includes a disposal rule that requires a broker-dealer (other than a broker-dealer registered by notice with the Commission to engage solely in transactions in securities futures) that maintains or possesses consumer report information for a business purpose to take reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal. See 17 CFR 248.30(b). Recently proposed amendments which would further strengthen the privacy protections under Regulation S-P are available at sec. govrulesproposed200834-57427.pdf . J. Investment Adviser Registration Broker-dealers offering certain types of accounts and services may also be subject to regulation under the Investment Advisers Act. 10 (An investment adviser is defined as a person who receives compensation for providing advice about securities as part of a regular business.) ( See Section 202(a)(11) of the Investment Advisers Act .) In general, a broker-dealer whose performance of advisory services is quotsolely incidentalquot to the conduct of its business as a broker-dealer and that receives no quotspecial compensationquot is excepted from the definition of investment adviser. Thus, for example, a broker-dealer that provides advice and offers fee-based accounts (i. e. accounts that charge an asset-based or fixed fee rather than a commission, mark-up, or mark-down) must treat those accounts as advisory because an asset-based fee is considered quotspecial compensation. quot Also, under a recently proposed rule, a broker-dealer would be required to treat (1) each account over which it exercises investment discretion as an advisory account, unless the investment discretion is granted by a customer on a temporary or limited basis and (2) an account as advisory if the broker-dealer charges a separate fee for, or separately contracts to provide, advisory services. ( See sec. govrulesproposed2007ia-2652.pdf .) Finally, under the same proposed rule, a broker-dealer that is registered under the Exchange Act and registered under the Investment Advisers Act would be an investment adviser solely with respect to those accounts for which it provides services that subject the broker-dealer to the Investment Advisers Act. VI. ARBITRATION Pursuant to the rules of self-regulatory organizations, broker-dealers are required to arbitrate disputes with their customers, if the customer chooses to arbitrate. See e. g. . NASD Code of Arbitration Procedure for Customer Disputes, Rule 12200 American Stock Exchange, Rule 600 and Chicago Board of Options Exchange, Rule 18.1. VII. FINANCIAL RESPONSIBILITY OF BROKER-DEALERS Broker-dealers must meet certain financial responsibility requirements, including: maintaining minimum amounts of liquid assets, or net capital taking certain steps to safeguard the customer funds and securities and making and preserving accurate books and records. A. Net Capital Rule (Rule 15c3-1) The purpose of this rule is to require a broker-dealer to have at all times enough liquid assets to promptly satisfy the claims of customers if the broker-dealer goes out of business. Under this rule, broker-dealers must maintain minimum net capital levels based upon the type of securities activities they conduct and based on certain financial ratios. For example, broker-dealers that clear and carry customer accounts generally must maintain net capital equal to the greater of 250,000 or two percent of aggregate debit items. Broker-dealers that do not clear and carry customer accounts can operate with lower levels of net capital. B. Use of Customer Balances (Rule 15c3-2) Broker-dealers that use customers39 free credit balances in their business must establish procedures to provide specified information to those customers, including: the amount due to those customers the fact that such funds are not segregated and may be used by the broker-dealer in its business and the fact that such funds are payable on demand of the customer. C. Customer Protection Rule (Rule 15c3-3) This rule protects customer funds and securities held by broker-dealers. Under the rule, a broker-dealer must have possession or control of all fully-paid or excess margin securities held for the account of customers, and determine daily that it is in compliance with this requirement. The broker-dealer must also make periodic computations to determine how much money it is holding that is either customer money or obtained from the use of customer securities. If this amount exceeds the amount that it is owed by customers or by other broker-dealers relating to customer transactions, the broker-dealer must deposit the excess into a special reserve bank account for the exclusive benefit of customers. This rule thus prevents a broker-dealer from using customer funds to finance its business. D. Required Books, Records, and Reports (Rules 17a-3, 17a-4, 17a-5, 17a-11) 11 Broker-dealers must make and keep current books and records detailing, among other things, securities transactions, money balances, and securities positions. They also must keep records for required periods and furnish copies of those records to the SEC on request. These records include e-mail. Broker-dealers also must file with the SEC periodic reports, including quarterly and annual financial statements. The annual statements generally must be certified by an independent public accountant. In addition, broker-dealers must notify the SEC and the appropriate SRO 12 regarding net capital, recordkeeping, and other operational problems, and in some cases file reports regarding those problems, within certain time periods. This gives us and the SROs early warning of these problems. E. Risk Assessment Requirements (Rules 17h-1T and 17h-2T) Certain broker-dealers must maintain and preserve certain information regarding those affiliates, subsidiaries and holding companies whose business activities are reasonably likely to have a material impact on their own financial and operating condition (including the broker-dealer39s net capital, liquidity, or ability to conduct or finance operations). Broker-dealers must also file a quarterly summary of this information. This information is designed to permit the SEC to assess the impact these entities may have on the broker-dealer. VIII. OTHER REQUIREMENTS In addition to the provisions discussed above, broker-dealers must comply with other requirements. These include: submitting to Commission and SRO examinations participating in the lost and stolen securities program complying with the fingerprinting requirement maintaining and reporting information regarding their affiliates following certain guidelines when using electronic media to deliver information and maintaining an anti-money laundering program. A. Examinations and Inspections (Rules 15b2-2 and 17d-1) Broker-dealers are subject to examination by the SEC and the SROs. The appropriate SRO generally inspects newly-registered broker-dealers for compliance with applicable financial responsibility rules within six months of registration, and for compliance with all other regulatory requirements within twelve months of registration. A broker-dealer must permit the SEC to inspect its books and records at any reasonable time. B. Lost and Stolen Securities Program (Rule 17f-1) In general, all broker-dealers must register in the lost and stolen securities program. The limited exceptions include broker-dealers that effect securities transactions exclusively on the floor of a national securities exchange solely for other exchange members and do not receive or hold customer securities, and broker-dealers whose business does not involve handling securities certificates. Broker-dealers must report losses, thefts, and instances of counterfeiting of securities certificates on Form X-17F-1A, and, in some cases, broker-dealers must make inquiries regarding securities certificates coming into their possession. Broker-dealers must file these reports and inquiries with the Securities Information Center (SIC), which operates the program for the SEC. A registration form can be obtained from Securities Information Center, P. O. Box 55151, Boston, MA 02205-5151. For registration and additional information, see the SIC39s website at secic . C. Fingerprinting Requirement (Rule 17f-2) Generally, every partner, officer, director, or employee of a broker-dealer must be fingerprinted and submit his or her fingerprints to the U. S. Attorney General. This requirement does not apply, however, to broker-dealers that sell only certain securities that are not ordinarily evidenced by certificates (such as mutual funds and variable annuities) or to persons who do not sell securities, have access to securities, money or original books and records, and do not supervise persons engaged in such activities. A broker-dealer claiming an exemption must comply with the notice requirements of Rule 17f-2. Broker-dealers may obtain fingerprint cards from their SRO and should submit completed fingerprint cards to the SRO for forwarding to the FBI on behalf of the Attorney General. D. Use of Electronic Media by Broker-Dealers The Commission has issued two interpretive releases discussing the issues that broker-dealers should consider in using electronic media for delivering information to customers. These issues include the following: Will the customer have notice of and access to the communication Will there be evidence of delivery Did the broker-dealer take reasonable precautions to ensure the integrity, confidentiality, and security of any personal financial information See Securities Exchange Act Release No. 37182 (May 15, 1996), 61 FR 24644. See also . Securities Exchange Act Release No. 39779 (March 23, 1998), 63 FR 14806 (sec. govrulesinterp33-7516.htm ). E. Electronic Signatures (E-SIGN) Broker-dealers should also consider the impact, if any, that the Electronic Signatures in Global and National Commerce Act (commonly known as E-SIGN), Pub. L. No. 106-229, 114 Stat. 464 (2000) 15 U. S.C. sect7001, has on their ability to deliver information to customers electronically. F. Anti-Money Laundering Program Broker-dealers have broad obligations under the Bank Secrecy Act (quotBSAquot) 13 to guard against money laundering and terrorist financing through their firms. The BSA, its implementing regulations, and Rule 17a-8 under the Exchange Act require broker-dealers to file reports or retain records relating to suspicious transactions, customer identity, large cash transactions, cross-border currency movement, foreign bank accounts and wire transfers, among other things. The BSA, as amended by the USA PATRIOT Act, as well as SRO rules (e. g. NASD Rule 3011 and NYSE Rule 445), also requires all broker-dealers to have anti-money laundering compliance programs in place. Firms must develop and implement a written anti-money laundering compliance program, approved in writing by a member of senior management, which is reasonably designed to achieve and monitor the member39s ongoing compliance with the requirements of the BSA and its implementing regulations. Under this obligation, firms must: establish and implement policies and procedures that can be reasonably expected to detect and cause the reporting of suspicious transactions establish and implement policies, procedures, and internal controls reasonably designed to achieve compliance with the BSA and implementing regulations provide for independent testing for compliance, to be conducted by member personnel or by a qualified outside party designate and identify to the SROs an individual or individuals responsible for implementing and monitoring the day-to-day operations and internal controls of the program and provide prompt notification regarding any change in such designation(s) and provide ongoing training for appropriate personnel. For a compilation of key anti-money laundering laws, rules and guidance applicable to broker-dealers, see Anti-Money Laundering Source Tool sec. govaboutofficesocieamlsourcetool. htm see also, FINRA Anti-Money Laundering Issue Center finra. orgRulesRegulationIssueCenterAnti-MoneyLaunderingindex. htm. In addition, the Financial Crimes Enforcement Network (quotFinCENquot), the division within the Department of the Treasury that administers the BSA, provides useful information for helping financial institutions, including broker-dealers, meet their BSA obligations. See FinCEN Web site fincen. gov . G. Office of Foreign Assets Control Broker-dealers have an obligation to comply with the sanctions programs administered by the Department of Treasury39s Office of Foreign Assets Control (OFAC). OFAC administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction. 14 OFAC acts under Presidential wartime and national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze foreign assets under US jurisdiction. OFAC39s sanctions programs are separate and distinct from, and in addition to, the anti-money laundering requirements imposed under the BSA on broker-dealers. 15 Unlike the BSA, OFAC programs apply to all U. S. persons and are applicable across business lines. OFAC programs are also strict liability programs mdash there are no safe harbors and no de minimis standards, although having a comprehensive compliance program in place could act as a mitigating factor in any enforcement action. OFAC publishes regulations implementing each of its programs, which include trade restrictions and asset blockings against particular countries and parties tied to terrorism, narcotics trafficking, proliferation of weapons of mass destruction, as well as a number of programs targeting members of certain foreign jurisdictions. As part of its efforts to implement these programs, OFAC publishes a list of Specially Designated Nationals, which is frequently updated on an as-needed basis. 16 In general, OFAC regulations require you to do the following: block accounts and other property of specified countries, entities, and individuals prohibit or reject unlicensed trade and financial transactions with specified countries, entities, and individuals and report all blockings and rejections of prohibited transactions to OFAC within ten days of the occurrence and annually. 17 OFAC has the authority to impose civil penalties of over 1,000,000 per count for violations of its sanctions programs. OFAC has stated that it will take into account the adequacy of your OFAC compliance program when it evaluates whether to impose a penalty if an OFAC violation occurs. To guard against engaging in OFAC prohibited transactions, you should generally follow a best practice of quotscreening againstquot the OFAC lists. 18 Consistent with this best practice, you should take care to screen all new accounts, existing accounts, customers and relationships against the OFAC lists, including any updates to the lists. This screening should include originators or recipients of wire and securities transfers. 19 H. Business Continuity Planning The Commission, Federal Reserve Board, and Comptroller of the Currency published an interagency White Paper emphasizing the importance of core clearing and settlement organizations and establishing guidelines for their capacity and ability to restore operations within a short time of a wide-scale disruption. 20 Separately, the Commission also published a Policy Statement urging the organized securities markets to improve their business continuity arrangements, 21 and encouraging SRO-operated markets and electronic communications networks, or ECNs to establish plans to enable the restoration of trading no later than the business day following a wide-scale disruption. In 2004, NASD and the NYSE adopted rules requiring every member to establish and maintain a business continuity plan, with elements as specified in the rules, and to provide the respective SROs with emergency contact information. See NASD Rule 3510 and NYSE Rule 446. See also . sec. govrulessronasd34-49537.pdf . IX. WHERE TO GET FURTHER INFORMATION For general questions regarding broker-dealer registration and regulation: Office of Interpretation and Guidance Division of Trading and Markets U. S. Securities and Exchange Commission 100 F Street, NE Washington, DC 20549 (202) 551-5777 e-mail: tradingandmarketssec. gov For additional information about how to obtain official publications of SEC rules and regulations, and for on-line access to SEC rules: Superintendent of Documents Government Printing Office Washington, DC 20402-9325 gpo. gov For copies of SEC forms and recent SEC releases, Publications Section U. S. Securities and Exchange Commission 100 F Street, NE Washington, DC 20549 (202) 551-4040 Other useful addresses, telephone numbers, and websites: SEC39s website: sec. gov The SEC39s website contains contact numbers for SEC offices in Washington and for the SEC39s regional offices: sec. govcontactaddresses. htm . Financial Industry Regulatory Authority 9509 Key West Avenue Rockville, MD 20850 (301) 590-6500 (call center) (800) 289-9999 (to check on the registration status of a firm or individual) finra. org New York Stock Exchange, Inc. 20 Broad Street New York, NY 10005 (212) 656-3000 nyse North American Securities Administrators Association, Inc. 750 First Street, NE, Suite 1140 Washington, DC 20002 (202) 737-0900 nasaa. org Municipal Securities Rulemaking Board gt1900 Duke Street, Suite 600 Alexandria, VA 22314 (703) 797-6600 msrb. org Securities Investor Protection Corporation 805 15th Street, N. W. Suite 800 Washington, D. C. 20005-2215 (202)371-8300 sipc. org e-mail: asksipcsipc. org We wish to stress that we have published this guide as an introduction to the federal securities laws that apply to brokers and dealers. It only highlights and summarizes certain provisions, and does not relieve anyone from complying with all applicable regulatory requirements. You should not rely on this guide without referring to the actual statutes, rules, regulations, and interpretations. 1 The Division of Trading and Markets was known as the Division of Market Regulation from August 7, 1972, until November 14, 2007. 2 The treatment of dividend (or interest) reinvestment and stock purchase plans is addressed in Rule 102(c) of Regulation M. ( See Part V. A.7.) 3 Section 9(a) prohibits particular manipulative practices regarding securities registered on a national securities exchange. Section 10(b) is a broad quotcatch-allquot provision that prohibits the use of quotany manipulative or deceptive device or contrivancequot in connection with the purchase or sale of any security. Sections 15(c)(1) and 15(c)(2) apply to the over-the-counter markets. Section 15(c)(1) prohibits broker-dealers from effecting transactions in, or inducing the purchase or sale of, any security by means of quotany manipulative, deceptive or other fraudulent device, quot and Section 15(c)(2) prohibits a broker-dealer from making fictitious quotes. 4 These include Rules 10b-1 through 10b-18, 15c1-1 through 15c1-9, 15c2-1 through 15c2-11, and Regulation M. 5 In addition, Rule 11Ac1-3 requires broker-dealers to inform their customers, upon opening a new account and annually thereafter, of their policies regarding payment for order flow and for determining where to route a customer39s order. 6 The purpose of this disclosure is to inform the customer of the nature and extent of a broker-dealer39s conflict of interest. Broker-dealers are neither required to disclose the precise amount of these payments nor any formula that would allow a customer to calculate this amount. Nevertheless, Rule 10b-10 is not a safe harbor from the anti-fraud provisions. Recent enforcement actions have indicated that failures to disclose the nature and extent of the conflict of interest may violate Section 17(a)(2) of the 1933 Act. See Edward D. Jones amp Co. L. P. Securities Exchange Act Release No. 50910 (Dec. 22, 2004) Morgan Stanley DW, Inc. Securities Exchange Act Release No. 48789 (Nov. 17, 2003). 7 SEC, Report by Division of Market Regulation, Broker-Dealer Policies and Procedures Designed to Segment the Flow and Prevent the Misuse of Material Non-Public Information, 1989-1990 Transfer Binder Fed. Sec. L. Rep. (CCH) 84,520 at p. 80, 620-25 (March, 1990). 8 Rule 15g-1(a)(1) establishes a transaction exemption for brokers or dealers whose commission equivalents, mark-ups, and mark-downs from transactions in penny stocks during each of the immediately preceding three months and during eleven or more of the preceding twelve months, or during the immediately preceding six months, did not exceed five percent of its total commissions, commission equivalents, mark-ups, and mark-downs from transactions in securities during those months. 9 Exemptions from the requirements of Exchange Act Rules 15g-2 through 15g-6 are provided for non-recommended transactions, broker-dealers doing a minimal business in penny stocks, trades with institutional investors, and private placements. See Rule 15g-1. Rule 15g-9(c) exempts certain transactions from the requirements of Rule 15g-9. 10 See Certain Broker-Dealers Deemed Not To Be Investment Advisers, Exchange Act Release No. 51523 (April 12, 2005). 11 Rules 17a-2, 17a-7, 17a-8, 17a-10 and 17a-13 contain additional recordkeeping and reporting requirements that apply to broker-dealers. 12 When a broker-dealer is a member of more than one SRO, the SEC designates the SRO responsible for examining such broker-dealer for compliance with financial responsibility rules (the quotdesignated examining authorityquot). 13 The Currency and Foreign Transactions Reporting Act of 1970 (commonly referred to as the quotBank Secrecy Actquot) is codified at 31 U. S.C. 5311, et seq. The regulations implementing the Bank Secrecy Act are located at 31 CFR Part 103. 14 A list of countries subject to OFAC sanctions, as well as a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted counties (collectively called Specially Designated Nationals (SDNs)), is available on the OFAC website: treas. govofac . A summary of OFAC regulations as they apply to the securities industry can be found at the following link: treas. govofficesenforcementofacregulationst11facsc. pdf See also Federal Financial Institutions Examination Council Bank Secrecy ActAnti-Money Laundering Examination Manual (quotFFIEC Manualquot), at pages 137-145 (8242007). The FFIEC Manual contains an entire section outlining best practices for OFAC Compliance, including risk matrices. Although that manual is written for the banking community, it provides information which may be useful to broker-dealers. 15 See also FinCEN Interpretive Release No. 2004-02 quotUnitary Filing of Suspicious Activity and Blocking Reports, quot 69 Fed. Reg. 76847 (Dec. 23, 2004). 16 OFAC offers a RISS feed service as well as an email notice system which pushes out digital information about its programs, including updates to its SDN List. See treas. govofac. These may be especially helpful to smaller firms whose OFAC compliance programs are more manual in nature. 17 You will find forms for blocking and rejection reports on OFAC39s website using the following links: 18 The Financial Industry Regulatory Authority (FINRA) offers a tool that assists firms to search for names on OFAC lists: apps. finra. orgRulesRegulationOFAC1Default. aspx . 19 See also FFIEC Manual at 140 (quotthe extent to which the bank includes account parties other than accountholders (e. g. beneficiaries, guarantors, principals, beneficial owners, nominee shareholders, directors, signatories, and powers of attorney) in the initial OFAC review during the account opening process, and during subsequent database reviews of existing accounts, will depend on the bank39s risk profile and available technology. quot). 20 Interagency Paper on Sound Practices to Strengthen the Resilience of the U. S. Financial Systems, Securities Exchange Act Release No. 47638 (April 7, 2003), 68 FR 17809 (April 11, 2003), sec. govnewsstudies34-47638.htm . 21 Policy Statement: Business Continuity Planning for Trading Markets, Securities Exchange Act Release No. 48545 (September 25, 2003), 68 FR 56656 (October 1, 2003), sec. govrulespolicy34-48545.htm .