[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR31.15]

[Page 375-376]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 31_LEVERAGE TRANSACTIONS--Table of Contents
 
Sec.  31.15  Reporting to leverage customers.

    Each leverage transaction merchant shall furnish in writing directly 
to each leverage customer:
    (a) Promptly upon the repurchase, resale, liquidation, rescission or 
delivery of a leverage contract, a statement showing the financial 
result of the transactions involved, including the gain or loss on the 
leverage contract as well as the commission and other charges;
    (b) As of the close of the last business day of each calendar month 
or as of any regular monthly date selected a statement which clearly 
shows:
    (1) All leverage contracts which were terminated for or by the 
leverage customer during the monthly reporting period by leverage 
commodity and contract, the number of contracts involved, the 
transaction identification number for each leverage contract, whether 
the terminating transaction involved repurchase, resale, liquidation, 
rescission, or delivery, the date the contract was initially entered 
into, the value of the contract when initiated, the date the contract 
was terminated, the value of the contract when terminated, and the 
realized profit or loss on the contract;
    (2) The open leverage contract positions carried for the leverage 
customer by leverage commodity and contract, whether the position is a 
long or short leverage contract, the dates on which such contracts were 
executed and their maturity dates, the number of contracts, the total 
value of the contracts when initiated, and the unrealized profit or loss 
on each such 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.

[[Page 376]]

    (3) The net ledger balance carried in the leverage customer's 
account as of the monthly closing date and a complete accounting of any 
leverage customer funds held for the leverage customer;
    (4) A detailed accounting of all financial charges and credits to 
the previous ledger balance during the monthly reporting period, 
including all leverage customer funds received from or disbursed to the 
leverage customer, and all commissions and fees incidental to the 
contract which have been charged and received, as well as all realized 
profits and losses; and
    (5) Any securities or other property which the leverage customer has 
deposited with the leverage transaction merchant that represent leverage 
customer funds.

The monthly statement must also contain the following bold-faced legend 
in at least ten-point type: IF YOU BELIEVE YOUR MONTHLY STATEMENT IS 
INACCURATE YOU SHOULD PROMPTLY CONTACT (name of LTM) AT (telephone 
number).
    (c) With respect to any leverage account controlled by any person 
other than the leverage customer for whom the account is carried, except 
such leverage customer's spouse, parent or child, a copy of the 
statements required by paragraphs (a) and (b) of this section shall be 
sent to the controller of the account as well as to the leverage 
customer for whom such account is carried.

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

[49 FR 5539, Feb. 13, 1984, as amended at 50 FR 33, Jan. 2, 1985; 50 FR 
2283, Jan. 16, 1985]