[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR31.14]

[Page 372-374]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 31_LEVERAGE TRANSACTIONS--Table of Contents
 
Sec.  31.14  Recordkeeping.

    (a) All books, records and other documents required to be kept by 
this part shall be kept in accordance with the provisions of Sec.  1.31 
of this chapter. In addition, information concerning leverage 
transactions shall be made available upon request of the Executive 
Director, the Director of the Division of Clearing and Intermediary 
Oversight, the Director of the Division of Market Oversight or the 
Director of the Division of Enforcement, or other designees, at a time 
and place and in such form and manner as may be specified in the 
request.
    (b) Each leverage transaction merchant shall:
    (1) Keep full, complete, and systematic records, together with all 
pertinent data and memoranda, of all transactions relating to leverage 
contracts, commodity futures, commodity options and cash commodities and 
furnish true and correct information and reports as to the contents or 
the meaning thereof when and as requested by any authorized 
representative of the Commission, designated self-regulatory 
organization, if any, or the U.S. Department of Justice. Included among 
such records shall be: All leverage contract orders; signature cards; 
journals; ledgers; canceled checks; bank statements; loan agreements; 
invoices; copies of confirmations; copies of statements of purchase, 
sale, repurchase, resale, liquidation, rescission and delivery; copies 
of month-end statements; monthly trial balances, and a monthly listing 
as described in paragraph (d) of this section; reports, letters and 
copies of disclosure statements signed by leverage customers as 
described in Sec.  31.11; promotional material, circulars,

[[Page 373]]

memoranda, publications, writings, and all other literature or written 
advice distributed to leverage customers or prospective leverage 
customers; and all other records, data and memoranda which have been 
prepared in the course of the business of the leverage transaction 
merchant concerning leverage contracts, commodity futures, commodity 
options, and cash commodities;
    (2) Keep a record in permanent form which shall show for each 
leverage customer's account carried by such leverage transaction 
merchant:
    (i) The true name and address of the person for whom such account is 
carried;
    (ii) The principal occupation and/or type of business of the person 
for whom such account is carried;
    (iii) The name and address of any other person who assumes or 
purports to assume any financial responsibility for or operational 
control of such account; and
    (iv) The names of the persons who have solicited and are responsible 
for each leverage customer's account.
    (c) Each leverage transaction merchant shall, as a minimum 
requirement, prepare regularly and promptly, and keep systematically and 
in permanent form, the following:
    (1) A financial ledger which will show separately for each leverage 
customer's account all charges against and credits to such leverage 
customer's account, including but not limited to all charges and credits 
for purchases, repurchases, sales, resales, liquidations, rescissions 
and settlements by delivery of leverage contracts (including the 
corresponding transaction identification numbers) and all funds 
transferred, desposited into, or withdrawn from the leverage customer's 
account.
    (2) A record of transactions which will show separately for each 
leverage customer's account in chronological sequence all leverage 
contracts entered into with such customer. This record will show for 
each transaction: The date of the transaction; the commodity involved; a 
transaction identification number; the maturity date; the number of 
contracts; whether the transaction represents an initial purchase, 
initial sale, closing repurchase, closing resale, a liquidating 
transaction, a rescission or a delivery; and, if a closing or 
liquidating transaction or a rescission, the total amount realized.
    (3) A daily record or journal which will show separately by leverage 
commodity complete details of all leverage transactions executed on that 
day, including the person for whom such transaction was made, the 
leverage commodity and contract involved, the number of leverage 
contracts, the transaction identification number for each leverage 
contract, whether the transaction was an initial purchase, repurchase, 
initial sale, resale, liquidating transaction, rescission or delivery, 
and the total value of the transaction.
    (4) The acknowledgement specified in Sec.  31.11(a).
    (5) A record of all notifications under Sec.  31.11(h).
    (6) Where reproductions on microfilm of the records required by this 
paragraph (c) are substituted for hard copy in accordance with the 
provisions of paragraph (a) of this section, the requirement of 
paragraphs (c)(1) and (c)(2) of this section will be considered met if 
the person required to keep such records is ready at all times to 
provide, and immediately provides at such time and place as required by 
the Commission and at the expense of such person, reproduced copies 
which show the records as specified in paragraphs (c)(1) and (c)(2) of 
this section, on request by any representative of the Commission, 
designated self-regulatory organization or the U.S. Department of 
Justice.
    (d) Each leverage transaction merchant shall prepare, as of the 
close of the last business day of each calendar month, a listing of all 
open leverage contracts carried for leverage customs. Such listing shall 
be by leverage commodity and contract and separately by long leverage 
contracts and short leverage contracts, and shall include the following 
details with respect to each leverage contract:
    (1) The customer account identification number;
    (2) The name of the leverage commodity and contract;
    (3) The date of execution and the maturity date;
    (4) The transaction identification number;

[[Page 374]]

    (5) The value of the leverage contract when initiated; and
    (6) The unrealized profit or loss on each open leverage contract 
marked to the market on the basis of the leverage transaction merchant's 
bid price for a long leverage contract and ask price for a short 
leverage contract.

(Secs. 8a(5) and 19 of the Commodity Exchange Act, as amended, 7 U.S.C. 
12a(5) and 23 (1982))

[50 FR 32, Jan. 2, 1985; 50 FR 2283, Jan. 16, 1985, as amended at 67 FR 
62352, Oct. 7, 2002]