1.17 Minimum financial requirements-futures commission merchants.

1.18 Records for and relating to financial reporting and monthly computation.

PROHIBITED TRADING IN Commodity OPTIONS 1.19 Prohibited trading in "puts" and "calls" in commodities.

CUSTOMERS' MONEY, SECURITIES, AND
PROPERTY

1.20 Customers' money, securities, and property to be segregated and separately accounted for.

1.21 Care of money and equities accruing to customer.

1.22 Use of money, securities, or property of customer restricted.

1.23 Interest of futures commission merchant in segregated funds, additions and withdrawals.

1.40 Crop, market information letters, reports; copies required.

1.41 Contract market rules, submission of rules to Commission, exemption of temporary emergency rules and certain operational and Administrative rules, emergencies.

1.41a Delegation of authority to the Executive Director and the Director of the Division of Trading and Markets. 1.42 Delivery notice; filing of copy. 1.43

Information required concerning warehouses, depositories, and other similar entities.

1.44 Records and reports of warehouses, depositories, and other similar entities; visitation of premises.

1.45 Delivery of commodities conforming to United States standards.

1.46 Application and closing out of off-setting long and short positions.

1.47 Requirements for classification of purchases or sales of contracts for future delivery as bona fide hedging under § 1.3(z)(3) of the regulations.

Sec.

1.48 Requirements for classification of sales or purchases for future delivery as bona fide hedging of unsold anticipated production or unfilled anticipated requirements under § 1.3(z)(2) (i)(B) or (ii) (C) of the regulations.

1.50 Demonstration of continued compliance with the requirements for contract market designation.

1.51 Contract market program for enforce

ment.

1.52 Self-regulatory organization adoption and surveillance of minimum financial requirements.

1.53 Enforcement of contract market bylaws, rules, regulations and resolutions.

1.54 Contract market rules submitted to and approved or not disapproved by the Secretary of Agriculture.

1.55 Distribution of "Risk Disclosure Statement" by futures commission merchants.

1.60 Pending legal proceedings.

AUTHORITY: Sec. 8a, 49 Stat. 1500, as amended, 88 Stat. 1392; 7 U.S.C. 12a, unless otherwise noted.

SOURCE: 41 FR 3194, Jan. 21, 1976, unless otherwise noted.

DEFINITIONS

§ 1.1 Words in singular and plural form. Words used in the singular form in the rules and regulations in this part shall be deemed to import the plural, and vice versa, as the case may require.

§ 1.2 Liability of principal for act of agent.

The act, omission, or failure of any official, agent, or other person acting for any individual, association, partnership, corporation, or trust, within the scope of his employment or office, shall be deemed the act, omission, or failure of such individual, association, partnership, corporation, or trust as well as of such official, agent, or other person.

(Sec. 2, 42 Stat. 998; 7 U.S.C. 4)

§ 1.3 Definitions.

The following terms, as used in the Commodity Exchange Act, or in the rules and regulations in this chapter, shall have the meanings hereby assigned to them, unless the context otherwise requires:

(a) Board of Trade. This term means any exchange or association, whether incorporated or unincorporated, of persons who shall be engaged in the business of buying or selling any commodity or receiving the same for sale on consignment.

(b) Business day. This term means any day other than a Sunday or holiday. In all notices required by the act or by the rules and regulations in this chapter to be given in terms of business days the rule for computing time shall be to exclude the day on which notice is given and include the day on which shall take place the act of which notice is given.

(c) Clearing member. This term means any person who is a member of, or enjoys the privilege of clearing trades in his own name through, the clearing organization of a contract market.

(d) Clearing organization. This term means the person or organization which acts as a medium for clearing transactions in commodities for future delivery, or for effecting settlements of contracts for future delivery, for and between members of any board of trade.

(e) Commodity. This term means and includes wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, millfeeds, butter, eggs, Irish potatoes, wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, soybean meal, livestock, livestock products, and frozen concentrated orange juice, and all other goods and articles, except onions as provided in Pub. L. 85-839, and all services, rights and interests in which contracts for future delivery are presently or in the future dealt in.

(Sec. 2(a)(1), 88 Stat. 1395; 7 U.S.C. 2(1))

(f) Commodity Exchange Act; the Act. These terms mean the Commodity Exchange Act, as amended, 7 U.S.C. 1 et seq.

(g) [Reserved] (h) Contract Market. This term means a board of trade designated by the Commission as a contract market under the Commodity Exchange Act.

(i) Contract of sale. This term includes sales, purchases, agreements of sale or purchase and agreements to sell or purchase.

(j) Controlled account. An account shall be deemed to be controlled by a person if such person by power of attorney or otherwise actually directs trading for such account.

(k) Customer; commodity customer. These terms have the same meaning and refer to a customer trading in any commodity named in the definition of commodity herein: Provided, however, An owner or holder of a proprietary account as defined in paragraph (y) of this section shall not be deemed to be a customer within the meaning of section 4d of the Act, the regulations that implement sections 4d and 4f of the Act and § 1.35, and such an owner or holder of such a proprietary account shall otherwise be deemed to be a customer within the meaning of the Act and §§ 1.37 and 1.46 and all other sections of these rules, regulations and orders which do not implement sections 4d and 4f.

(1) Delivery month. This term means the month of delivery specified in a contract of sale of any commodity for future delivery.

(m) [Reserved]

(n) Floor broker. This term means any person who, in or surrounding any pit, ring, post, or other place provided by a contract market for the meeting of persons similarly engaged, shall purchase or sell for any other person any commodity for future delivery on or subject to the rules of any contract market.

(0) Future delivery. This term does not include any sale of a cash commodity for deferred shipment or delivery.

(p) Futures commission merchant. This term means (1) individuals, associations, partnerships, corporations, and trusts engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market and that, in or in connection with such solicitation or acceptance of orders, accepts any money, securities, or property (or extends credit in lieu thereof) to margin, guarantee or secure any trades or contracts

that result or may result therefrom and (2) shall include any person required to register as a futures commission merchant under the Act by virtue of Part 32 of this chapter.

(q) Member of a contract market. This term means and includes individuals, associations, partnerships, corporations, and trusts owning or holding membership in, or admitted to membership representation on, a contract market or given members' trading privileges thereon.

(r) Net equity. This term means the credit balance which would be obtained by combining the commodity margin balance of any person with the net profit or loss, if any, accruing on the open trades or contracts of such person.

(s) Net deficit. This term means the debit balance which would be obtained by combining the commodity margin balance of any person with the net profit or loss, if any, accruing on the open trades or contracts of such person.

(t) Open contracts. This term means contracts of purchase or sale of any commodity made by or for any person on or subject to the rules of a board of trade for future delivery during a specified month or delivery period which have not been fulfilled by delivery nor offset by other contracts of sale or purchase in the same commodity and delivery month.

(u) Person. This term includes individuals, associations, partnerships, corporations, and trusts.

(v) [Reserved]

(w) Secretary of Agriculture. This term means the Secretary of Agriculture or any person to whom authority has heretofore lawfully been delegated or to whom authority may hereafter lawfully be delegated to act in his stead.

(x) Floor trader. A member of a contract market who, on the exchange floor, executes a future trade for his own account or an account controlled by him, or has such a trade made for him.

(y) Proprietary account. This term shall mean a commodity futures trading account carried on the books and records of an individual, a partnership, corporation or other type association,

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