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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 26. INSURANCE, SECURITIES, AND BANKING |
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SubTilte 26-B. SECURITIES |
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Chapter 26-B1. BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES |
Section 26-B120. RECORDKEEPING REQUIREMENTS
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120.1Any broker-dealer maintaining books and records pursuant to SEC orFINRA rules shall be deemed to be in compliance with this section. Any broker-dealer not in compliance with SEC or NASDR books and records rules shall make and keep current books, records, and other documents relating to business conducted in the District as specified in this section.
120.2The broker-dealer shall keep blotters (or other records or original entry) containing an itemized daily record of the following information:
(a)The purchases and sales of securities;
(b)The receipts and deliveries of securities (including certificate numbers);
(c)The disbursements of cash and all other debits and credits;
(d)The account for which each transaction was effected;
(e)The name and amount of securities;
(f)The unit and aggregate purchase of the sale price, if any; and
(g)The trade date, and the name or other designation of the person from whom purchased or received or to whom sold or delivered;
120.3The broker-dealer shall keep ledgers (or other records) reflecting all assets and liabilities, income and expenses, and capital accounts.
120.4The broker-dealer shall keep ledger accounts (or other records), itemizing separately each cash and margin account of every customer and of the broker-dealer and partners in the following manner:
(a)All purchases, sales, and receipts;
(b)All deliveries of securities and commodities for the account; and
(c)All other debits and credits to the account.
120.5The broker-dealer shall keep ledgers (or other records) reflecting the following:
(a)Securities in transfer;
(b)Dividends and interest received;
(c)Securities borrowed and securities loaned;
(d)Monies borrowed and monies loaned (together with a record of the collateral and any substitutions in the collateral); and
(e)Securities failed to receive and failed to deliver.
120.6The broker-dealer shall keep a securities record or ledger reflecting separately for each security, as of the clearance dates, all "long" or "short" positions (including securities in safekeeping) carried by the broker-dealer for his or her account or for the account of his or her customers or partners and showing the location of all securities long and the off-setting position to all securities short, and in all cases the name or designation of the account in which each position is carried.
120.7The broker-dealer shall keep a memorandum of each brokerage order, and of any other instruction given or received for the purchase or sale of securities, whether executed or unexecuted.
120.8The broker-dealer's memorandum shall show the following:
(a)The terms and conditions of the order or instructions;
(b)Any modification or cancellation;
(c)The account for which entered;
(d)The time of entry;
(e)The price at which executed; and
(f)To the extent feasible, the time of execution or cancellation.
120.9Records of orders entered into the ledger pursuant to the exercise of discretionary power by the broker-dealer, or any employee, shall be so designated.
120.10For the purposes of §§ 120.7 and 120.8, the term "instruction" shall be considered to include instructions between partners and employees of a broker-dealer.
120.11The broker-dealer shall keep a memorandum of each purchase of securities for the account of the broker-dealer showing the price and, to the extent feasible, the time of execution.
120.12The broker-dealer shall keep copies of all purchases and sales of securities and copies of notices of all other debits and credits for securities, cash, and other items for the account of customers and partners of the broker-dealers.
120.13The broker-dealer shall keep with respect to each cash and margin account, 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 the account of a corporation, the records are required only with respect to the person or persons authorized to transact business for the account.
120.14The broker-dealer shall keep a record of all puts, calls, spreads, straddles, and other options in which the broker-dealer has any direct or indirect interest or which the broker-dealer has granted or guaranteed, containing at least an identification of the security and the number of units involved.
120.15The broker-dealer shall keep a record of the proof of money balances of all ledger accounts in the form of trial balances.
120.16The broker-dealer shall keep a record that shows, over a three (3) month period, the computations of the minimum net capital and ratio of aggregate indebtedness to net capital as of the trial balance date pursuant to § 110; Provided, that any member of an exchange whose members are exempted from § 110 by § 110.3 shall make a record of the computation of the ratio of aggregate indebtedness to net capital as of the trail balance date in accordance with the capital rules of at least one (1) of the exchanges listed in which it is a member.
120.17The broker-dealer shall prepare the trial balances once each month, and shall prepare the computations of minimum net capital and the ratio of aggregate indebtedness to net capital in accordance with SEC regulations.