(2) Leverage transaction merchants. Each application for registration, or for renewal thereof, as a leverage transaction merchant must be accompanied by a fee of $275.

(3) Associated persons. Each Form 8-R submitted in connection with the registration of an associated person of a leverage transaction merchant must be accompanied by a fee of $35.

(4) Branch offices. A fee of $6 must be provided for each branch office of a leverage transaction merchant operating within the United States, as specified in any Form 7-R or any schedule thereto or in any Form 3-R filed with the Commission to report the addition of a branch office. The fee specified by this paragraph (a)(4) must accompany each Form 7-R filed as an application for initial registration or for renewal of registration and each Form 3-R filed to report the addition of a branch office.

(b) Form of remittance; fees not refundable. Registration fees must be remitted by check, bank draft, or money order, payable to the Commodity Futures Trading Commission. All registration fees are nonrefundable.

(Sec. 8a of the Commodity Exchange Act, 7 U.S.C. 12a; sec. 26 of the Futures Trading Act of 1978, 92 Stat. 877, 7 U.S.C. 16a (Supp. V 1981), as amended by sec. 237 of the Futures Trading Act of 1982, Pub. L. 97-444, 96 Stat 2326 (Jan. 11, 1983); secs. 8a(5) and 19 of the Commodity Exchange Act, as amended, 7 U.S.C. 12a(5) and 23 (1982); 5 U.S.C. 552 and 552b; secs. 2(a)(1), 4c, 4d, 4e, 4f, 4k, 4m, 4n, 4p, 8, 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p, 12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b)

[48 FR 34734, Aug. 1, 1983, as amended at 49 FR 39530, Oct. 9, 1984]

§3.4 Registration in one capacity not included in registration in any other capacity.

(a) Except as may be otherwise provided in the Act or in any rule, regulation, or order of the Commission, each futures commission merchant, floor broker, associated person, commodity trading advisor, commodity pool operator, introducing broker, and leverage transaction merchant must register as such under the Act. Registration in one capacity under the Act shall not

include registration in any other capacity.

(b) Except as may be provided in any rule, regulation or order of the Commission, registration as an associated person in one capacity shall not include registration as an associated person in any other capacity: Provided, however, That an associated person who is sponsored by a registrant, which itself is registered in more than one capacity, need register only once to act as an associated person of the registrant, and shall be deemed to be an associated person of such registrant, in each such capacity.

(Secs. 2(a)(1), 4c, 4d, 4e, 4f, 4k, 4m, 4n, 4p, 8, 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p, 12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b)

[49 FR 39530, Oct. 9, 1984]

§§ 3.5-3.9 [Reserved]

§ 3.10 Registration of futures commission merchants.

(a) Initial registration. (1) Application for initial registration as a futures commission merchant must be on Form 7-R, completed and filed with the National Futures Association in accordance with the instructions thereto and the provisions of § 1.10 of this chapter.

(2) Each Form 7-R filed in accordance with the requirements of paragraph (a)(1) of this section must be accompanied by a Form 8-R, completed in accordance with the instructions thereto and executed by each natural person who is a principal of the applicant, and must be accompanied by the fingerprints of that principal on a fingerprint card provided by the National Futures Association for that purpose. The provisions of this paragraph (a)(2) do not apply to any principal who has a current Form 8-R or Form 94 on file with the Commission or the National Futures Association.

(b) Renewal of registration. Application for renewal of registration as a futures commission merchant must be on Form 7-R, completed and filed with the National Futures Association in accordance with the instructions thereto.

(c) Exemption from registration for certain persons. A person trading solely for proprietary accounts, as defined in § 1.3(y) of this chapter, is not required to register as a futures commission merchant: Provided, that such a person remains subject to all other provisions of the Act and of the rules, regulations and orders thereunder. (Approved by the Office of Management and Budget under control number 30380023)

(Secs. 8a(5) and 19 of the Commodity Exchange Act, as amended, 7 U.S.C. 12a(5) and 23 (1982); 5 U.S.C. 552 and 552b; secs. 2(a)(1), 4c, 4d, 4e, 4f, 4k, 4m, 4n, 4p, 8, 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p, 12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b)

[45 FR 80491, Dec. 5, 1980, as amended at 47 FR 27551, June 25, 1982; 49 FR 5522, Feb. 13, 1984; 49 FR 39530, Oct. 9, 1984]

§3.11 Registration of floor brokers.

(a) Trading privileges required. No person who applies for registration, or for renewal of registration, as a floor broker will be registered as such unless he has been granted trading privileges by a board of trade which has been designated as a contract market by the Commission.

(b) Initial registration. Application for initial registration as a floor broker must be on Form 8-R, completed and filed with the Commission in accordance with the instructions thereto. Each applicant for initial registration as a floor broker must file his fingerprints with the Form 8-R or a fingerprint card provided by the Commission for that purpose except, that a fingerprint card need not be filed by any applicant who has a current Form 8-R on Form 94 on file with the Commission or the National Futures Association.

(c) Renewal of registration. Application for renewal of registration as a floor broker must be on Form 8-R, completed and filed with the Commission in accordance with the instructions thereto.

(Approved by the Office of Management and Budget under control number 30380023)

(Secs. 8a(5) and 19 of the Commodity Exchange Act, as amended, 7 U.S.C. 12a(5) and 23 (1982); 5 U.S.C. 552 and 552b; secs.

2(a)(1), 4c, 4d, 4e, 4f, 4k. 4m, 4n. 4p. 8. 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n. 6p. 12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b)

[45 FR 80491, Dec. 5, 1980, as amended at 46 FR 24942, May 4, 1981; 47 FR 27551, June 25, 1982; 49 FR 5522, Feb. 13, 1984; 49 FR 39531, Oct. 9, 1984]

(c) Application for registration. Except as otherwise provided in paragraphs (d) and (f) of this section, application for registration as an associated person of a futures commission merchant or introducing broker must be on Form 8-R, completed and filed in accordance with the instructions thereto.

(1) No person will be registered as an associated person in accordance with this paragraph (c) unless an officer, if the sponsor is a corporation, a general partner, if a partnership, or the sole proprietor, if a sole proprietorship, of such sponsor has signed and dated a certification in writing, stating that:

(i) It is the intention of the sponsor to hire or otherwise employ the applicant as an associated person and that it will do so within thirty days after the receipt of the notification provided in accordance with paragraph (c)(4) of this section and that the applicant

will not be permitted to engage in any activity requiring registration as an associated person until the applicant is registered as such in accordance with this section;

(ii) The sponsor has verified the information supplied by the applicant in response to the questions on Form 8-R which relate to the applicant's education and employment history during the preceding five years.

(iii) To the best of the sponsor's knowledge, information, and belief, all of the publicly available information supplied by the applicant on Form 8-R is accurate and complete: Provided, That it is unlawful for the sponsor to make the certification required by this paragraph (c)(1)(iii) if the sponsor knew or should have known that any of that information is not accurate and complete; and

(2) The certification required by paragraph (c)(1) of this section must be submitted concurrently with the Form 8-R.

(3) Each Form 8-R filed in accordance with the requirements of paragraph (c) of this section must be accompanied by the fingerprints of the applicant on a fingerprint card provided for that purpose by the National Futures Association.

(4) When the Commission or the National Futures Association determines that an applicant for registration as an associated person is not unfit for I such registration, it will provide notification in writing to the sponsor which = has made the certifications required by paragraph (c)(1) of this section that the applicant's registration as an associated person is granted contingent upon the sponsor hiring or otherwise employing the applicant as such within thirty days.

(d) Special registration procedures =for certain persons. (1) Except as provided in paragraph (f) of this section, any person whose registration as an associated person in another capacity is still in effect, or whose registration as an associated person in the same capacity or in another capacity has terminated within the preceding sixty days, and who becomes associated with a sponsoring futures commission merchant or introducing broker which makes the certification provided by

paragraph (d)(1)(i) of this section will be registered as, and in the capacity of, an associated person of such sponsor upon the mailing by that sponsor to the National Futures Association of written certifications stating:

(i) That such person has been hired or is otherwise employed by that sponsor;

(ii) That such person's registration as an associated person in any capacity is not suspended or revoked;

(iii) That such person is eligible to be registered in accordance with this paragraph (d);

(iv) Whether there is a pending proceeding under sections 6(b) or 8a of the Act or § 3.52, § 3.55 or § 3.60, or § 3.20 or former § 1.10e, to deny, suspend, revoke, condition or restrict such person's registration in any capacity or if, within the preceding twelve months, the Commission has permitted the withdrawal of an application for registration in any capacity after instituting the procedures provided in § 3.51 or § 3.20 and, if so, that the sponsor has been given a copy of the complaint or letter issued by the Commission in connection therewith;

and

(v) That the sponsor has received a copy of the complaint or letter issued by the Commission if the applicant for registration has certified, in accordance with paragraph (d)(1)(iv) of this section, that there is a proceeding pending against him as described in that paragraph or that the Commission has permitted the withdrawal of an application for registration as described in that paragraph.

(2) The certifications permitted by paragraphs (d)(1) (i) and (v) of this section must be signed and dated by an officer, if the sponsor is a corporation, a general partner, if a partnership, or the sole proprietor, if a sole proprietorship. The certifications permitted by paragraphs (d)(1) (ii)–(iv) of this section must be signed and dated by the applicant for registration as an associated person.

(3) Within sixty days of mailing the certifications permitted by paragraph (d)(1) of this section, the associated person and the sponsor must complete and the sponsor must file with the National Futures Association a Form 8-R

in accordance with the instructions thereto. The Form 8-R must contain the certifications required by paragraphs (c)(1) (ii)-(iv) of this section and must be accompanied by the fingerprints of the associated person on a fingerprint card provided by the National Futures Association for that purpose.

(e) Retention of records. The sponsor must retain in accordance with § 1.31 of this chapter such records as are necessary to support the certifications required by this section.

(f) Certain dual and multiple associations prohibited. No person may be simultaneously associated as an associated person with:

(1) More than one futures commission merchant or with more than one introducing broker;

(2)(i) A futures commission merchant and an introducing broker, (ii) a futures commission merchant and a leverage transaction merchant, or (iii) leverage

an

introducing broker a

transaction merchant;

(3) A futures commission merchant and a commodity trading advisor for which that futures commission merchant solicits or intends to solicit clients or prospective clients: Provided, That a person registered as an associated person of a futures commission merchant who solicits clients by, for, or on behalf of that futures commission merchant, or supervises any person or persons so engaged, shall in such a case be deemed to be associated solely with the futures commission merchant;

(4) Subject to the provisions of paragraph (f)(3) of this section, a futures commission merchant and a commodity trading advisor for which that futures commission merchant carries or introduces, or intends to carry or introduce, clients' or prospective clients' discretionary accounts;

(5) A futures commission merchant and a commodity pool operator for which that futures commission merchant solicits or intends to solicit funds, securities, or property: Provided, That a person registered as an associated person of a futures commission merchant who solicits funds, securities, or property by, for, or on behalf of that futures commission merchant,

or supervises any person or persons so engaged, shall in such a case be deemed to be associated solely with the futures commission merchant;

(6) Subject to the provisions of paragraph (f)(5) of this section, a futures commission merchant and a commodity pool operator for which that futures commission merchant carries or introduces, or intends to carry or introduce, the account of a commodity pool operated by that commodity pool operator;

(7) An introducing broker and a commodity trading advisor for which that introducing broker solicits or intends to solicit clients or prospective clients: Provided, That a person registered as an associated person of an introducing broker who solicits clients by, for, or on behalf of that introducing broker, or supervises any person or persons so engaged, shall in such a case be deemed to be associated solely with the introducing broker;

(8) Subject to the provisions of paragraph (f)(7) of this section, an introducing broker and a commodity trading advisor for which that introducing broker introduces, or intends to introduce, clients' or prospective clients' discretionary accounts;

(9) An introducing broker and a commodity pool operator for which that introducing broker solicits or intends to solicit funds, securities, or property: Provided, That a person registered as an associated person of an introducing broker who solicits funds, securities, or property by, for, or on behalf of that introducing broker, or supervises any person or persons so engaged, shall in such a case be deemed to be associated solely with the introducing broker; or

(10) Subject to the provisions of paragraph (f)(9) of this section, an introducing broker and a commodity pool operator for which that introducing broker introduces, or intends to introduce, the account of a commodity pool operated by that commodity pool operator.

(g) Petitions for exemption. (1) Any person adversely affected by the operation of this section may file a petition with the Secretary of the Commission, which petition, must set forth with particularity the reasons why that person believes that an applicant

should be exempted from the requirements of this section and why such an exemption would not be contrary to the public interest and the purposes of the provision from which exemption is sought. The petition will be granted or denied by the Commission on the basis of the papers filed. The Commission may grant such a petition if it finds that the exemption is not contrary to the public interest and the purposes of the provision from which exemption is sought. The petition may be granted subject to such terms and conditions as the Commission may find appropri=ate.

(2)(i) Until such time as the Comi mission orders otherwise, the Commis=sion hereby delegates to the Director I of the Division of Trading and Markets or his designee the authority to I grant or deny petitions filed pursuant to this paragraph (g).

(ii) The Director of the Division of Trading and Markets may submit to 1 the Commission for its consideration any matter which has been delegated to him pursuant to paragraph (g)(2)(i) of this section.

[___ (h) Exemption from registration. A person is not required to register as an associated person of a futures commission merchant or as an associated person of an introducing broker if that person is:

(1) Registered with the Commission as a futures commission merchant, floor broker, or as an introducing broker; or

(2) Is engaged in the solicitation of funds, securities, or property for a participation in a commodity pool, or the supervision of any person or persons so engaged, pursuant to registration with the National Association of Securities Dealers as a registered representative, registered principal, limited representative, or limited principal, and that person does not engage in any other activity subject to regulation by the Commission.

(Approved by the Office of Management and Budget under control number 30380023)

(Secs. 2(a)(1), 4, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, 4k, 4m, 4n, 40, 4p, 6, 8, 8a, 14, 15, 17 and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 61, 6k, 6m,

6n, 60, 6p, 8, 9, 9a and 13b, 12, 12a, 18, 19, 21 and 23 (1982); 5 U.S.C. 552 and 552b))

[45 FR 80491, Dec. 5, 1980, as amended at 47 FR 27551, June 25, 1982; 48 FR 35292, Aug. 3, 1983; 49 FR 5522, Feb. 13, 1984; 49 FR 8218, Mar. 5, 1984; 49 FR 39531, Oct. 9, 1984]

§3.12a-(T) "Transfer" of associated persons; temporary exemption.

Notwithstanding the provisions of §3.12(a)-(d) and of § 3.31, any registered associated person of a registered futures commission merchant will be registered as an associated person of a registered introducing broker, and any registered associated person of an introducing broker will be registered as an associated person of a registered futures commission merchant, if the futures commission merchant and the introducing broker submit to the Commission, not later than January 31, 1984, a statement, signed and dated by the futures commission merchant and by the introducing broker, specifying:

(a)(1) The name of each such associated person;

(2) The identification number, if any, assigned by the Commission to each such associated person;

(3) The registration expiration date of each such associated person if the associated person was registered as such prior to July 1, 1982, and such registration has not yet expired; and

(b) That the introducing broker or futures commission merchant with which the associated person will be associated as an associated person acknowledges that:

(1) The associated persons specified in accordance with the requirements of paragraph (a)(1) of this section will, upon the effective date of the transfer of their association from the futures commission merchant to the introducing broker or from the introducing broker to the futures commission merchant, be registered as associated persons of the introducing broker or futures commission merchant, respectively, and will remain registered in such capacity in accordance with the provisions of § 3.12(b) as if the introducing broker or futures commission merchant had been the sponsor with respect to each of those associated persons; and

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