17 CFR 240.3b-12 - Definition of OTC derivatives dealer.
(a) Are limited to:
(1) Engaging in dealer activities in eligible OTC derivative instruments that are securities;
(2) Issuing and reacquiring securities that are issued by the dealer, including warrants on securities, hybrid securities, and structured notes;
(3) Engaging in cash management securities activities;
(4) Engaging in ancillary portfolio management securities activities; and
(b) Consist primarily of the activities described in paragraphs (a)(1), (a)(2), and (a)(3) of this section; and
(c) Do not consist of any other securities activities, including engaging in any transaction in any security that is not an eligible OTC derivative instrument, except as permitted under paragraphs (a)(3), (a)(4), and (a)(5) of this section.
(d) For purposes of this section, the term hybrid security means a security that incorporates payment features economically similar to options, forwards, futures, swap agreements, or collars involving currencies, interest or other rates, commodities, securities, indices, quantitative measures, or other financial or economic interests or property of any kind, or any payment or delivery that is dependent on the occurrence or nonoccurrence of any event associated with a potential financial, economic, or commercial consequence (or any combination, permutation, or derivative of such contract or underlying interest).
- 17 CFR 240.15a-1 — Securities Activities of OTC Derivatives Dealers.
- 17 CFR 240.15c2-5 — Disclosure and Other Requirements When Extending or Arranging Credit in Certain Transactions.
- 17 CFR 240.36a1-2 — Exemption From SIPA for OTC Derivatives Dealers.
- 17 CFR 240.15b9-2 — Exemption From SRO Membership for OTC Derivatives Dealers.