Rule 3a44-1
  Proprietary Government Securities Transactions Incidental to
the Futures-Related Business of a CFTC-Regulated Person
a. A
person registered with the Commodity Futures Trading Commission ("CFTC"),
a contract market designated by the CFTC, such a contract market's affiliated
clearing organization, or any floor trader or such a contract market (hereinafter
referred to collectively as a "CFTC-regulated person") is not
a government securities dealer solely because such person effects transactions
for its own account in government securities that are defined in paragraph
(b) of this section as incidental to such person's futures-related business.
b.
Provided that a CFTC-regulated
person does not advertise or otherwise hold itself out as a government
securities dealer except as permitted under rule 3a43-1 ( 240.3a43-1)
the following transactions in government securities for its own account
are incidental to the futures-related business of such a CFTC-regulated
person:
1.
Transactions to effect delivery of a government security pursuant to a
futures contract;
2.
Exchange of futures for physicals transactions with (i) a government securities
broker or government securities dealer that has registered with the Commission
or filed notice pursuant to
section
15C(a) of the Act or (ii) a CFTC-regulated person;
3.
Transactions (including repurchase agreements and reverse repurchase agreements)
involving segregated customer funds and securities or funds and securities
held by a clearing organization with (i) a government securities broker
or government securities dealer that has registered with the Commission
of filed notice pursuant to
section
15C(a) of the Act or (ii) a bank;
4.
Transactions for risk reduction or arbitrage of existing or contemporaneously
created positions in futures or options on futures with (i) a government
securities broker or government securities dealer that has registered
with the Commission or filed notice pursuant to
ection 15C(a)
of the Act or (ii) a CFTC-regulated person;
5.
Repurchase and reverse repurchase agreement transactions between a futures
commission merchant acting in a proprietary capacity and another CFTC-regulated
person acting in a proprietary capacity and contemporaneous offsetting
transactions between such a futures commission merchant and (i) a government
securities broker or government securities dealer that has registered
with the Commission or filed notice pursuant to
section
15C(a) of the Act, (ii) a bank, or (iii) a CFTC-regulated person acting
in a proprietary capacity; and
6.
Any transaction or transactions that the Commission exempts, either unconditionally
or on specified terms and conditions, as incidental to the futures related
business of a specified CFTC-regulated person, a specified category of
CFTC-regulated persons, or CFTC-regulated persons generally.
c.
Definitions.
1.
Segregated customer funds means funds subject to CFTC segregation
requirements.
2.
Futures and futures contracts means contracts of
sale of a commodity for future delivery traded on or subject to the rules
of a contract market designated by the CFTC or traded on or subject to
the rules of any board of trade located outside the United States, its
territories, or possessions.
3.
Options on futures means puts or calls on a futures contract
traded on or subject to the rules of a contract market designated by the
CFTC or traded on or subject to the rules of any board of trade located
outside the United States, its territories, or possessions.
|
