Current through August, 2024
(a) Every dealer,
except a dealer that is registered under the Securities Exchange Act, shall
make and keep the books and records listed in subsections (b) through (h). All
dealers registered under the Securities Exchange Act shall keep and maintain
books and records as required under the Securities Exchange Act. All records
required to be kept by this section shall be maintained and preserved for a
period of at least three years and made available for inspection by the
commissioner upon reasonable notice.
(b) Blotters (or other records or books of
original entry) containing an itemized daily record of:
(1) Purchases and sales of
securities;
(2) Receipts and
deliveries of securities;
(3)
Receipts and disbursements of cash;
(4) All other debits and credits;
and
(5) Each transaction,
reflecting:
(A) The account or name of the
customer;
(B) Name and amount of
securities;
(C) Certificate number,
if any;
(D) Unit and aggregate
purchase or sale price;
(E) Trade
date; and
(F) Name or other
designation of person from whom purchased or received, or to whom sold and
delivered.
(c) Ledgers, reflecting:
(1) Assets and liabilities;
(2) Income and expenses;
(3) Capital accounts;
(4) Securities in transfer;
(5) Dividends and interest
received;
(6) Securities borrowed
and loaned;
(7) Monies borrowed and
loaned, and collateral used or substituted therefor;
(8) Securities failed to receive and failed
to deliver; and
(9) A record of all
puts, calls, spreads and straddles and other options in which dealer has any
direct or indirect interest, or which it has granted or guaranteed, containing
at least:
(A) Identification of the security;
and
(B) Number of units
involved.
(d)
Ledger accounts, itemizing separately as to each cash or margin account of
every customer and of the dealer, including employees and partners thereof:
(1) Name and address of the beneficial owner
of the account;
(2) In the case of
a margin account, the signature of the owner, or person authorized to transact
business for the account;
(3)
Purchases and sales;
(4) Receipts
and deliveries of securities; and
(5) All other debits and credits to the
account.
(e) Securities
records, reflecting for each security (including securities in safekeeping)
carried by the dealer for its account, or for the accounts of its customers,
employees, or partners:
(1) Clearance dates
of all long and short positions;
(2) Location of all securities long and
offsetting position to all securities short; and
(3) Name or designation of the account in
which each position is carried.
(f) Memorandum, of the following:
(1) Each brokerage order for the purchase or
sale of a security showing:
(A) Any
instruction given or received, whether executed or unexecuited;
(B) Terms and conditions or instructions, and
any modification or cancellation thereof;
(C) Account for which entered;
(D) Date and time of entry, and time of
execution or cancellation, to the extent feasible;
(E) Price at which executed; and
(F) Orders entered pursuant to the exercise
of discretionary authority so designated;
(2) Each purchase and sale for the account of
the dealer, including employees and partners thereof, showing:
(A) Name of purchaser or seller;
(B) Price; and
(C) Date and time of execution.
(g) Confirmations of
all purchases and sales of securities and notices of all other debits and
credits for securities, cash, and other items for the account of customers,
partners, and employees shall be given or sent to persons at or before
completion of each transaction, copies to be retained by the dealer disclosing,
at least:
(1) The account for which the
transaction is entered;
(2)
Instructions, terms, and conditions, whether executed or unexecuted;
(3) Date of execution of transaction (the
time of trade shall be furnished upon request.);
(4) Whether the dealer is acting as agent or
as dealer for its own account; and
(5) If the dealer is acting as agent for the
customer, the following information, or a statement that the same shall be
furnished upon request:
(A) The name of the
person from whom the security was purchased, or to whom it was sold, and date
and time the transaction occurred; and
(B) The source and amount of commission or
remuneration received or to be received in connection with the
transaction.
(h) Complaint forms, correspondence,
memoranda, and any other document concerning complaints filed with the dealer;
and any complaint forms, correspondence, memorandum, or other document that was
filed by a client with any governmental entity or self-regulatory organization
that was provided to the dealer by the governmental entity or self-regulatory
organization.
