[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: 17CFR32.7]

[Page 386]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 32_REGULATION OF COMMODITY OPTION TRANSACTIONS--Table of Contents
 
Sec.  32.7  Books and recordkeeping.

    (a) Each person which accepts any money, securities or property (or 
extends credit in lieu thereof) from an option customer as payment of 
the purchase price in connection with a commodity option transaction 
shall keep full, complete and systematic records together with all 
pertinent data and memoranda of or relating to such transactions. Such 
records shall at least include all orders (filled, unfilled or 
cancelled), signature cards, books of records, journals, ledgers, 
cancelled checks, copies of all statements of purchase, exercise or 
lapse, and reports, letters, disclosure statements and confirmation 
statements required by Sec.  32.5 of this part, solicitation or 
advertising material (including the texts of standardized oral 
presentations and of radio, television, seminar or similar mass media 
presentations), circulars, memoranda, publications, writings, and all 
other literature or written advice distributed to option customers or 
prospective option customers. Upon the request of an authorized 
representative of the Commission, such person shall furnish the true 
name and address of each commodity option customer or prospective 
commodity option customer solicited.
    (b) Each person referred to in paragraph (a) of this section shall 
also keep a record in permanent form which shall show the true name and 
address of each maker, underwriter, issuer or other person who assumes 
or purports to assume any financial responsibility for the fulfillment 
of any commodity option transaction solicited or accepted by such 
person, to the extent that such information is known or may be 
reasonably obtained by such person.
    (c) Each person which accepts an order for a commodity option 
transaction from a person other than an option customer, shall keep 
full, complete and systematic records together with all pertinent data 
and memoranda of or relating to the transaction. Such records shall at 
least include the items set forth in paragraph (b) of this section and, 
to the extent necessary to reflect such person's participation in the 
transaction, shall include all items set forth in paragraph (a) of this 
section.
    (d) Each person which accepts an order for a commodity option shall 
immediately upon receipt thereof prepare a written record of such order, 
including an account identification and order number, and shall record 
thereon by timestamp or other device, the date and time, to the nearest 
minute, that (1) the order is accepted, (2) the order is transmitted for 
execution, and (3) the order is executed.
    (e) All records, memoranda and other documents required to be 
maintained by paragraphs (a) through (c) of this section, and to be 
prepared by paragraph (d) of this section shall be retained for the 
period specified in Sec.  1.31 of this chapter, and each person required 
to maintain such records shall be required to produce the same for 
inspection and furnish true and correct copies thereof and information 
and reports as to the contents or meaning thereof when and as requested 
by any authorized representative of the Commission or the United States 
Department of Justice.

(Approved by the Office of Management and Budget under control number 
3038-0001)

[41 FR 51814, Nov. 24, 1976, as amended at 46 FR 63036, Dec. 30, 1981]