change in the personnel of a partnership resulting from the death, withdrawal, or addition of a partner which, as a matter of law, does not create a new partnership may be reported on Form 3-R, as provided in § 1.15.

(2) With respect to a floor broker. Item 2 (business address), item 5 (names and addresses of clearing members through whom registrant clears commodity futures transactions for his own account), and item 6 (refusal of, or suspension or expulsion from, commodityexchange membership).

(b) All statements on Form 3-R shall be prepared and filed in accordance with the instructions appearing thereon. [22 F.R. 8899, Nov. 6, 1957]

A new registration shall be required in the event of a change:

(a) In the name of the registrant; (b) In the form of organization of the registrant;

(c) In the ownership of the business of the registrant in the case of a sole proprietorship; and

(d) In the personnel of a partnership resulting from the death, withdrawal, or addition of a partner: Provided, That if such change does not, as a matter of law, create a new partnership, it may be reported by the registrant to the Commodity Exchange Authority on Form 3-R within 10 days of the date of such change, and if so reported a new registration shall not be required.

funds, when deposited with any bank or trust company, shall be deposited under an account name which will clearly show that they are customers' funds segregated as required by the Commodity Exchange Act, and under a written agreement with such bank or trust company waiving any claim, lien, or right of set-off of any nature which such bank or trust company might otherwise have or obtain against such funds. An executed copy of such agreement shall be kept by the futures commission merchant in accordance with the requirements of § 1.31. If such 'funds are deposited with a clearing organization of a contract market, they shall be deposited under an account name which will clearly show that they are customers' funds segregated as required by the Commodity Exchange Act. Under no circumstances shall any portion of commodity customers' funds be obligated to the clearing organization of a contract market, or to any member of a contract market, except to margin, guarantee, secure, transfer, adjust, or settle trades and contracts made in behalf of such commodity customers. [27 F.R. 12672, Dec. 21, 1962]

§ 1.21 Care of money and equities accruing to customer.

All money received directly or indirectly by, and all money and equities accruing to, a futures commission merchant from any clearing organization of any contract market, or from any member thereof or from any member of a contract market, incident to or resulting from any trade or contract in commodity futures made by or through such futures commission merchant in behalf of any customer shall be considered as accruing to such customer within the meaning of section 4d (2) of the Commodity Exchange Act. Such money and equities shall be treated and dealt with as belonging to such customer in accordance with the provisions of the act. Money and equities accruing in connection with customers' open trades or contracts need not be separately credited to individual customers' accounts but may be treated and dealt with as belonging undivided to all customers having open trades or contracts which if closed would result in a credit to such customers.

(Sec. 4d, 49 Stat. 1494; 7 U.S.C. 6d)

§ 1.30 Loans by futures commission

merchants; treatment of proceeds. Nothing contained in the rules and regulations in this chapter, shall be construed to prevent a futures commission merchant from lending his own funds to commodity customers on securities and property pledged by such customers, or from re-pledging or selling such securities and property pursuant to specific written agreement with such customers: Provided, however, That the proceeds of such loans used to margin, guarantee, or secure the trades or contracts of such customers in any commodity for future delivery shall be treated and dealt with by such futures commission merchant as belonging to such customers, in accordance with and subject to the provisions of section 4d (2) of the Commodity Exchange Act.

(Sec. 4d, 49 Stat. 1494; 7 U.S.C. 6d)

§ 1.31

RECORD KEEPING

Books and records; keeping and inspection.

All books and records required to be kept by the act or by the rules and regulations in this chapter, shall be kept for a period of five years from the date thereof and shall be readily accessible during the first two years of such period. During the last two years of such period, the person required to keep such books and records may at his option substitute photographic reproductions thereof on film, together with facilities for the projection of such film in a manner which will permit it to be readily inspected or examined. All such books, records, and photographic reproductions shall be open to inspection by any representative of the United States Department of Agriculture or the United States Department of Justice.

(Secs. 4, 5, 42 Stat. 999, as amended, 1000, as amended, secs. 4g, 41, 5a, 49 Stat. 1496, 1497; 7 U.S.C. 6, 7, 6g, 61, 7a) [15 F.R. 4443, July 13, 1950]

§ 1.31a Compliance with §§ 1.32–1.36. With respect to a futures commission merchant who transmits all customers' commodity futures orders, together with all money, securities, and property received to margin, guarantee, or clear the trades or contracts of such customers, to another futures commission merchant for execution or clearance, and the latter renders confimations and statements of purchase and sale, and transmits remit

ect to such customers, the

The amount of money, securities, and property which must be in segregated account in order to comply with the re- | quirements of section 4d (2) of the Commodity Exchange Act shall be computed by each futures commission merchant as of the close of the market each business day, based upon his accounting records. A record of such computation shall be made and kept, together with all supporting data, in accordance with the requirements of § 1.31.

[27 F.R. 12673, Dec. 21, 1962]

§ 1.33 Monthly statement for customer and record of customer's position in each future.

Each futures commission merchant shall promptly furnish in writing directly to each customer, as of the close of the last business day of each calendar month or as of any regular monthly date selected: (a) A statement which clearly shows the open contracts with prices at which acquired, and the ledger balance carried for the customer's account; and (b) a statement which clearly shows any securities or other property which the customer has deposited with the futures commission merchant to margin, guarantee, or secure the account. Copies of the statements prepared for customers shall be retained by the futures commission merchant in accordance with the requirements of § 1.31.

[27 F.R. 16272, Dec. 21, 1962]

show on each monthly statement furnished as required by § 1.33, or on an accompanying supplemental statement, the net profit or loss on all contracts closed since the date of the previous statement, and the net unrealized profit or loss in all open contracts figured to the market: Provided, however, That the provisions of this paragraph shall not apply to an account controlled by the spouse, parent, or child of the customer for whom such account is carried.

(b) With respect to any account carried for or in the name of a pool or combination of persons trading in commodities, each futures commission merchant shall furnish promptly to each individual participating in such pool or combination a copy of the monthly statement provided for by § 1.33, and clearly show on such statement, or on an accompanying supplemental statement, the further information specified in paragraph (a) (2) of this section. It is not required that the confirmation provided for by paragraph (a)(1) of this section be sent to the several individuals participating in such pool or combination. [30 F.R. 15210, Dec. 9, 1965]

§ 1.34 Monthly record, "point balance”.

Each futures commission merchant shall prepare, and keep in accordance with the requirements of § 1.31, a statement, commonly known as a "point balance", which accrues or brings to the official closing price, or settlement price fixed by the clearing organization, all open contracts of customers as of the last business day of each calendar month or of any regular monthly date selected: Provided, however, That a futures commission merchant who carries part or all of customers' open contracts with other futures commission merchants on an "instruct basis" will be deemed to have met the requirements of this section as to open contracts so carried if a monthly statement is prepared which shows that the prices and amounts of such contracts long and short in the customers' accounts are in balance with those in the carrying commission merchants' accounts, and such statements are retained in accordance with the requirements of § 1.31.

[27 F.R. 16272, Dec. 21, 1962]

§ 1.35 Records of cash commodity and futures transactions.

(a) Futures commission merchants and members of contract markets. Each

futures commission merchant and each member of a contract market shall keep full, complete, and systematic records, together with all pertinent data and memoranda, of all transactions relating to his business of dealing in commodity futures and cash commodities. He shall retain the required records, data and memoranda in accordance with the requirements of § 1.31, and shall produce them for inspection and shall 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 United States Department of Agriculture or the United States Department of Justice. Included among such records shall be all orders (filled, unfilled, or canceled), trading cards, signature cards, street books, journals, ledgers, canceled checks, copies of confirmations, copies of statements of purchase and sale and all other records, data and memoranda which have been prepared in the course of his business of dealing in commodity futures and cash commodities.

(b) Futures commission merchants and clearing members of contract markets. Each futures commission merchant and each clearing member of a contract market shall, as a minimum requirement, prepare regularly and promptly, and keep systematically and in permanent form, the following:

(1) A financial ledger record which will show separately for each customer all charges against and credits to such customer's account, including but not limited to funds or securities deposited, withdrawn, or transferred, and charges or credits resulting from losses or gains cn closed transactions;

(2) A record of transactions which will show separately for each account (including house accounts) all commodity futures transactions executed for such account, including the date, price, quantity, market, commodity, and future; and

(3) A record or journal which will show separately for each business day complete details of all commodity futures transactions executed on that day, including the date, price, quantity, market, commodity, future, and the person for whom such transaction was made.

(c) Clearing members of contract markets. In the daily record or journal required to be kept under paragraph (b) (3) of this section, each clearing member of a contract market shall also

ings, conclusions and orders submitted by parties, not theretofore ruled upon.

(b) Issuance of order. The order, prepared as described in paragraph (a) of this section, shall be issued and served upon the parties as the final order in the proceeding without further procedure: Provided, That, if the terms of the order differ substantially from those proposed in the report of the referee, the Commission may, if it deems it advisable to do so, direct that a copy of the order be served upon the parties as a tentative order; and, in such event, opportunity shall be given the parties to file exceptions thereto and written arguments or briefs in support of such exceptions. In such case, if no exceptions are filed within 20 days following the service of the tentative order, it shall be issued and served as the final order in the proceeding.

§ 0.94 Applications for reopening hearings, for rehearings or rearguments of proceedings, or for reconsideration of orders.

The provisions of § 0.71 shall be applicable in 6a proceedings.

Filing; service; extensions of time; additional time for filing; and computation of time.

§ 0.95

1.20

The provisions of § 0.72 shall be applicable in 6a proceedings.

1.21

1.22

RULES APPLICABLE TO ALL PROCEEDINGS § 0.96 Hearings before the Commission.

The Commission may act in the place and stead of a referee or presiding officer in any proceeding under this subpart. When it so acts, the hearing clerk shall transmit the record to the Commission at the expiration of the period provided for the filing of proposed findings of fact, conclusions and orders, and the Commission shall thereupon, after due consideration of the record, issue its final order in the proceeding: Provided, That it may issue a tentative order, in which event the parties shall be afforded an opportunity to file exceptions before the issuance of the final order.

PART 1-GENERAL

1.23

Changes requiring new registration. Registrations expire December 31 of each year.

CUSTOMERS' FUNDS

Customers' funds to be segregated and separately accounted for.

Care of money and equities accruing to customer.

Use of money, securities, or property of customers restricted.

exclusions there

Interest of futures commission merchant in segregated funds, additions and withdrawals. 1.24 Segregated funds; from. Investment and lending of customers' money; conditions governing.

1.25

REGULATIONS

1.31

EX

Books and records; keeping and inspection.

Words in singular and plural form. Liability of principal for act of agent. Definitions.

1.31a Compliance with §§ 1.32-1.36.

1.32 Segregated account; daily computation and record.

1.33 Monthly statement for customer and record of customer's position in each future.

1.33a Controlled accounts.

§ 1.1

DEFINITIONS

Words in singular and plural form. Words used in the singular form in the rules and regulations in this part shall be deɛmed to import the plural, and vice versa, as the case may require. § 1.2

Liability of principal for act of agent.

The act, cmission, or failure of any official, agent, or other person acting for any individual, association, partnership, corporation, or trust, within the scope of his employment or office, shall be deemed the act, omission, or failure of such individual, association, partnership, corporation, or trust as well as of such official, agent, or other person. (Sec. 2, 42 Stat. 998; 7 U.S.C. 4) § 1.3

Definitions.

The following terms, as used in the Commodity Exchange Act or in the rules

and regulations in this chapter, shall have the meanings hereby assigned to them, unless the context otherwise requires:

(a) Board of Trade. This term means any exchange or association, whether incorporated or unincorporated, of persons who shall be engaged in the business of buying or selling any commodity or receiving the same for sale on consignment.

(b) Business day. This term means any day other than a Sunday or holiday. In all notices required by the act or by the rules and regulations in this chapter to be given in terms of business days the rule for computing time shall be to exclude the day on which notice is given and inclue the day on which shall take place the act of which notice is given.

(c) Clearing member. This term means any person who is a member of, or enjoys the privilege of clearing trades in his own name through, the clearing organization of a contract market.

(d) Clearing organization. This term means the person or organization which acts as a medium for clearing transactions in commodities for future delivery, or for effecting settlements of contracts for future delivery, for and between members of any board of trade.

(e) Commodity. This term means and includes wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, millfeeds, butter, eggs (including shell eggs, frozen whole eggs, frozen plain egg whites, and frozen plain egg yolks), onions, Irish potatoes, wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, and soybean meal.

(f) Commodity Exchange Act; the act. These terms mean the Commodity Exchange Act approved September 21, 1922 (42 Stat. 998), as amended June 15, 1936 (49 Stat. 1491; 7 U.S.C. 1-17a), and other legislation supplementary thereto and amendatory thereof.

(g) Commodity Exchange Authority. This term means the Commodity Exchange Authority, United States Department of Agriculture.

(h) Contract market. This term means a board of trade designated by the Secretary of Agriculture as a contract market under the Commodity Exchange Act.