Exempted security
(10) Exempted security shall have the meaning provided in section 3(a)(12) of the Exchange Act. (11) Floor broker shall have the meaning provided in section 1a(16) of the Act. (12) Floor trader shall have the meaning provided in section 1a(17) of the Act. (13) Futures account shall have the meaning provided in 1.3 of this chapter. (14) Futures commission merchant shall have the meaning provided in section 1a(20) of the Act. (15) Good faith, with respect to making a determination or accepting a statement concerning financial relations with a person, means that the security futures intermediary is alert to the circumstances surrounding such financial relations, and if in possession of information that would cause a prudent person not to make the determination or accept the notice or certification without inquiry, investigates and is satisfied that it is correct. (16) Listed option means a put or call option that is: (i) Issued by a clearing agency that is registered under section 17A of the Exchange Act or cleared and guaranteed by a derivatives clearing organization that is registered under section 5b of the Act; and (ii) Traded on or subject to the rules of a self-regulatory authority. (17) Margin call means a demand by a security futures intermediary to a customer for a deposit of cash, securities or other assets to satisfy the required margin for security futures or related positions or a special margin requirement. (18) Margin deficiency means the amount by which the required margin in an account is not satisfied by the equity in the account, as computed in accordance with 41.46 of this subpart. (19) Margin equity security shall have the meaning provided in Regulation T. (20) Margin security shall have the meaning provided in Regulation T. (21) Member shall have the meaning provided in section 3(a)(3) of the Exchange Act, and shall include persons registered under section 15(b)(11) of the Exchange Act that are permitted to effect transactions on a national securities exchange without the services of another person acting as executing broker. (22) Money market mutual fund means any security issued by an investment company registered under section 8 of the Investment Company Act of 1940 that is considered a money market fund under 270.2a-7 of this title. (23) Persons associated with a broker or dealer shall have the meaning provided in section 3(a)(18) of the Exchange Act. (24) Regulation T means Regulation T promulgated by the Board of Governors of the Federal Reserve System, 12 CFR part 220, as amended from time to time. (25) Regulation T collateral value, with respect to a security, means the current market value of the security reduced by the percentage of required margin for a position in the security held in a margin account under Regulation T. (26) Related position, with respect to a security future, means any position in an account that is combined with the security future to create an offsetting position as provided in 41.45(b)(2) of this subpart. (27) Related transaction, with respect to a position or transaction in a security future, means: (i) Any transaction that creates, eliminates, increases or reduces an offsetting position involving a security future and a related position, as provided in 41.45(b)(2) of this subpart; or (ii) Any deposit or withdrawal of margin for the security future or a related position, except as provided in 41.47(b) of this subpart. (28) Securities account shall have the meaning provided in 1.3 of this chapter. (29) Security futures intermediary means any creditor as defined in Regulation T with respect to its financial relations with any person involving security futures, including: (i) Any futures commission merchant; (ii) Any partner, officer, director, or branch manager (or person occupying a similar status or performing similar functions) of a futures commission merchant; (iii) Any person directly or indirectly controlling, controlled by, or under common control with (except for business entities controlling or under common control with) a futures commission merchant; and (iv) Any employee of a futures commission merchant (except an employee whose functions are solely clerical or ministerial). (30) Self-regulatory authority means a national securities exchange registered under section 6 of the Exchange Act, a national securities association registered under section 15A of the Exchange Act, or a contract market registered under section 5 of the Act or section 5f of the Act. (31) Special margin requirement shall have the meaning provided in 41.46(e)(1)(ii) of this subpart. (32) Variation settlement means any credit or debit to a customer account, made on a daily or intraday basis, for the purpose of marking to market a security future or any other contract that is: (i) Issued by a clearing agency that is registered under section 17A of the Exchange Act or cleared and guaranteed by a derivatives clearing organization that is registered under section 5b of the Act; and (ii) Traded on or subject to the rules of a self-regulatory authority.