[Code of Federal Regulations]

[Title 12, Volume 1]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR12.3]



[Page 170]

 

                       TITLE 12--BANKS AND BANKING

 

   CHAPTER I--COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY

 

PART 12_RECORDKEEPING AND CONFIRMATION REQUIREMENTS FOR SECURITIES 

TRANSACTIONS--Table of Contents

 

Sec. 12.3  Recordkeeping.



    (a) General rule. A national bank effecting securities transactions 

for customers shall maintain the following records for at least three 

years:

    (1) Chronological records. An itemized daily record of each purchase 

and sale of securities maintained in chronological order, and including:

    (i) Account or customer name for which each transaction was 

effected;

    (ii) Description of the securities;

    (iii) Unit and aggregate purchase or sale price;

    (iv) Trade date; and

    (v) Name or other designation of the broker/dealer or other person 

from whom the securities were purchased or to whom the securities were 

sold;

    (2) Account records. Account records for each customer, reflecting:

    (i) Purchases and sales of securities;

    (ii) Receipts and deliveries of securities;

    (iii) Receipts and disbursements of cash; and

    (iv) Other debits and credits pertaining to transactions in 

securities;

    (3) Memorandum order. A separate memorandum (order ticket) of each 

order to purchase or sell securities (whether executed or canceled), 

including:

    (i) Account or customer name for which the transaction was effected;

    (ii) Type of order (market order, limit order, or subject to special 

instructions);

    (iii) Time the trader or other bank employee responsible for 

effecting the transaction received the order;

    (iv) Time the trader placed the order with the broker/dealer, or if 

there was no broker/dealer, time the order was executed or canceled;

    (v) Price at which the order was executed; and

    (vi) Name of the broker/dealer utilized;

    (4) Record of broker/dealers. A record of all broker/dealers 

selected by the bank to effect securities transactions and the amount of 

commissions paid or allocated to each broker during the calendar year; 

and

    (5) Notifications. A copy of the written notification required by 

Sec. Sec. 12.4 and 12.5.

    (b) Manner of maintenance. The records required by this section must 

clearly and accurately reflect the information required and provide an 

adequate basis for the audit of the information. Record maintenance may 

include the use of automated or electronic records provided the records 

are easily retrievable, readily available for inspection, and capable of 

being reproduced in a hard copy.