General Rules and Regulations
promulgated
under the
Securities Exchange Act of 1934
Rule 36a1-2 -- Exemption from SIPA for OTC Derivatives Dealers
Preliminary Note:OTC derivatives dealers are a special class of broker-
dealers that are exempt from certain broker-dealer requirements, including membership
in a self-regulatory organization (Rule 15b9-2), regular
broker-dealer margin rules (Rule 36a1-1), and application
of the Securities Investor Protection Act of 1970 (Rule
36a1-2). OTC derivative dealers are subject to special requirements, including
limitations on the scope of their securities activities (Rule
15a-1), specified internal risk management control systems (Rule
15c3-4), recordkeeping obligations (Rule 17a-3(a)(10)),
and reporting responsibilities (Rule 17a-12). They
are also subject to alternative net capital treatment (Rule
15c3-1(a)(5)).
OTC derivatives dealers, as defined in Rule 3b-12, shall
be exempt from the provisions of the Securities Investor Protection Act of 1970 (15
U.S.C. 78aaa through 78lll).
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