15 CSR 30-59.150 - Records Required of Broker-Dealers and Sales Representatives

PURPOSE: This rule prescribes the books and records to be kept by broker-dealers and sales representatives.

(1) Every broker-dealer shall make and keep current the following books and records relating to his/her business (provided, however, that compliance with the requirements of the Commodity Futures Trading Commission or Securities and Exchange Commission with respect to maintenance of books and records shall be deemed to be compliance with this rule):

(A) Blotters (or other records of original entry) containing an itemized daily record of all purchases and sales of commodities, all receipts and deliveries of commodities, all receipts and disbursements of cash and all other debits and credits. This record shall show the account for which each such transaction was effected, the type and amount of commodities, the unit and aggregate purchase or sale price (if any), the trade date and the name or other designation of the person from whom purchased or received or to whom sold or delivered;

(B) Ledgers (or other records) reflecting all assets and liabilities, income and expense and capital accounts;

(C) Ledger accounts itemized separately as to cash and margin account of every customer and of that broker-dealer, its partners, agents and employees, all purchases, sales receipts and deliveries of commodities for that account and all other debits and credits to that account;

(D) Ledgers (or other records) reflecting the following:

1. Commodities in transfer;

2. Appreciation or depreciation on investment;

3. Commodities borrowed and commodities loaned; and

4. Moneys borrowed and moneys loaned (together with a record of the collateral and substitutions in that collateral);

(E) A memorandum of each brokerage order and of any other instruction, given or received for the purchases or sale of commodities, whether executed or unexecuted. This memorandum shall show the terms and conditions of the order and of any other instruction, given or cancellation of, the account for which entered, the time of entry, the price at which executed and, to the extent feasible, the time of execution or cancellation. Orders entered pursuant to the exercise of discretionary power by the broker-dealer or any employee shall be so designated. The term instruction shall include instructions between partners and employees of a broker-dealer. The term time of entry shall mean the time when the broker-dealer transmits the order or instructions for execution or, if it is not so transmitted, the time when it is received;

(F) A memorandum of each purchase and sale of commodities for the account of the broker-dealer showing the price and, to the extent feasible, the time of execution;

(G) Copies of confirmations of all purchases and sales of commodities, copies of all memoranda forwarded to purchasers executing unsolicited orders and copies of all other debits and credits for securities, commodities, cash and other items for the account of customers and partners of the broker-dealer; and

(H) A record in respect of each cash and margin account with the broker-dealer containing the name and address of the beneficial owner of the account and, in the case of a margin account, the signature of the owner; provided that, in the case of a joint account or an account of a corporation, these records are required only in respect of the person(s) authorized to transact business for the account.

(2) Every sales representative shall make and keep current the following records relating to his/her business:

(A) Cross reference sheets for each type and grade of commodity reflecting the customer's name, the amount of commodity purchased or sold (if any), the unit and aggregate purchase or sale price (if any), the trade dates and the aggregate net gain or loss; and

(B) Holding pages for each customer reflecting for each type and grade of commodity, the amount of commodity purchased or sold (if any), the unit and aggregate purchase or sale price (if any), the trade dates and the aggregate net gain or loss.

Notes

15 CSR 30-59.150

AUTHORITY: section 409.858(6), RSMo 1986.* This rule was previously filed as 15 CSR 30-60.100. Emergency rule filed Oct. 2, 1985, effective Oct. 12, 1985, expired Feb. 9, 1986. Original rule filed Aug. 22, 1986, effective Jan. 30, 1987.

*Original authority: 409.858, RSMo 1985.