[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: 17CFR4.23]

[Page 189-191]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 4_COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS--Table 
of Contents
 
                   Subpart B_Commodity Pool Operators
 
Sec.  4.23  Recordkeeping.

    Each commodity pool operator registered or required to be registered 
under the Act must make and keep the following books and records in an 
accurate, current and orderly manner at its main business office and in 
accordance with Sec.  1.31. All books and records required by this 
section except those required by paragraphs (a)(3), (a)(4), (b)(1), 
(b)(2) and (b)(3) must be made available to participants for inspection 
and copying during normal business hours at the main business office of 
the pool operator. Upon request, copies

[[Page 190]]

must be sent by mail to any participant within five business days if 
reasonable reproduction and distribution costs are paid by the pool 
participant. If the commodity pool operator's main business office is 
outside of the United States, its territories or possessions, then upon 
the request of a Commission representative, the pool operator must 
provide such books and records as requested at the place in the United 
States, its territories or possessions designated by the representative 
within 72 hours after the pool operator receives the request.
    (a) Concerning the commodity pool:
    (1) An itemized daily record of each commodity interest transaction 
of the pool, showing the transaction date, quantity, commodity interest, 
and, as applicable, price or premium, delivery month or expiration date, 
whether a put or a call, strike price, underlying contract for future 
delivery or underlying physical, the futures commission merchant 
carrying the account and the introducing broker, if any, whether the 
commodity interest was purchased, sold, exercised, or expired, and the 
gain or loss realized.
    (2) A journal of original entry or other equivalent record showing 
all receipts and disbursements of money, securities and other property.
    (3) The acknowledgement specified by Sec.  4.21(b) for each 
participant in the pool.
    (4) A subsidiary ledger or other equivalent record for each 
participant in the pool showing the participant's name and address and 
all funds, securities and other property that the pool received from or 
distributed to the participant.
    (5) Adjusting entries and any other records of original entry or 
their equivalent forming the basis of entries in any ledger.
    (6) A general ledger or other equivalent record containing details 
of all asset, liability, capital, income and expense accounts.
    (7) Copies of each confirmation of a commodity interest transaction 
of the pool, each purchase and sale statement and each monthly statement 
for the pool received from a futures commission merchant.
    (8) Cancelled checks, bank statements, journals, ledgers, invoices, 
computer generated records, and all other records, data and memoranda 
prepared or received in connection with the operation of the pool.
    (9) The original or a copy of each report, letter, circular, 
memorandum, publication, writing, advertisement or other literature or 
advice (including the texts of standardized oral presentations and of 
radio, television, seminar or similar mass media presentations) 
distributed or caused to be distributed by the commodity pool operator 
to any existing or prospective pool participant or received by the pool 
operator from any commodity trading advisor of the pool, showing the 
first date of distribution or receipt if not otherwise shown on the 
document.
    (10) A Statement of Financial Condition as of the close of (i) each 
regular monthly period if the pool had net assets of $500,000 or more at 
the beginning of the pool's fiscal year, or (ii) each regular quarterly 
period for all other pools. The Statement must be completed within 30 
days after the end of that period.
    (11) A Statement of Income (Loss) for the period between (i) the 
later of: (A) the date of the most recent Statement of Financial 
Condition furnished to the Commission pursuant to Sec.  4.22(c), (B) 
April 1, 1979 or (C) the formation of the pool, and (ii) the date of the 
Statement of Financial Condition required by paragraph (a)(10) of this 
section. The Statement must be completed within 30 days after the end of 
that period.
    (12) A manually signed copy of each Account Statement and Annual 
Report provided pursuant to Sec.  4.22, 4.7(b) or 4.12(b), and records 
of the key financial balances submitted to the National Futures 
Association for each commodity pool Annual Report, which records must 
clearly demonstrate how the key financial balances were compiled from 
the Annual Report.
    (b) Concerning the commodity pool operator:
    (1) An itemized daily record of each commodity interest transaction 
of the commodity pool operator and each

[[Page 191]]

principal thereof, showing the transaction date, quantity, commodity 
interest, and, as applicable, price or premium, delivery month or 
expiration date, whether a put or a call, strike price, underlying 
contract for future delivery or underlying physical, the futures 
commission merchant carrying the account and the introducing broker, if 
any whether the commodity interest was purchased, sold, exercised, or 
expired, and the gain or loss realized.
    (2) Each confirmation of a commodity interest transaction, each 
purchase and sale statement and each monthly statement furnished by a 
futures commission merchant to (i) the commodity pool operator relating 
to a personal account of the pool operator, and (ii) each principal of 
the pool operator relating to a personal account of such principal.
    (3) Books and records of all other transactions in all other 
activities in which the pool operator engages. Those books and records 
must include cancelled checks, bank statements, journals, ledgers, 
invoices, computer generated records and all other records, data and 
memoranda which have been prepared in the course of engaging in those 
activities.

(Approved by the Office of Management and Budget under control number 
3038-0005)

(Secs. 2(a)(1), 4c(a)-(d), 4d, 4f, 4g, 4k, 4m, 4n, 8a, 15 and 17, 
Commodity Exchange Act (7 U.S.C. 2, 4, 6c(a)-(d), 6f, 6g, 6k, 6m, 6n, 
12a, 19 and 21; 5 U.S.C. 552 and 552b))

[46 FR 26013, May 8, 1981, as amended at 46 FR 63035, Dec. 30, 1981; 47 
FR 57011, Dec. 22, 1982; 48 FR 35299, Aug. 3, 1983; 60 FR 38183, July 
25, 1995; 71 FR 8943, Feb. 22, 2006]