[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR33.3]

[Page 384-385]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 33--REGULATION OF DOMESTIC EXCHANGE-TRADED COMMODITY OPTION TRANSACTIONS--Table of Contents
 
Sec. 33.3  Unlawful commodity option transactions.

    (a) It shall be unlawful for any person to offer to enter into, 
enter into, confirm the execution of, or maintain a position in, any 
commodity option transaction subject to the provisions of this part 
unless the commodity option involved is traded (1) on or subject to the 
rules of a contract market which has been designated to trade commodity 
options pursuant to this part and (2) by or through a member thereof in 
accordance with the provisions of this part.
    (b) It shall be unlawful for:
    (1) Any person to solicit or accept orders from an option customer 
(other than in a clerical capacity) for any commodity option 
transaction, or to supervise any person or persons so engaged, unless 
such person is:
    (i) Registered as a futures commission merchant under the Act, and 
either:
    (A) Is a member of the contract market on which the option is 
traded, or
    (B) Is a member of a futures association registered under section 17 
of the Act which has adopted rules which the Commission has approved 
under section 17(j) of the Act and, in addition to the requirements of 
that section, has determined to provide for the regulation of the 
commodity option related activity of its member futures commission 
merchants in a manner equivalent to that required of contract markets 
under these regulations; or
    (ii) Registered as an introducing broker under the Act, and either:
    (A) Is a member of a futures association registered under section 17 
of the Act which has adopted rules which the Commission has approved 
under section 17(j) of the Act, or is a member of a contract market 
which has adopted rules which the Commission has approved under section 
5a(a)(12) of the Act, and which, in addition to the requirements of 
those sections, has determined to provide for the regulation of the 
commodity option related activity of its member introducing brokers in a 
manner equivalent to that required of contract markets with respect to 
their member futures commission merchants under these regulations; or
    (B) Is operating pursuant to a guarantee agreement, and the futures 
commission merchant which has signed such agreement is a member of a 
self-regulatory organization that has adopted rules which the Commission 
has approved that provide for the regulation of the commodity option 
related activity of the introducing broker in a manner equivalent to 
that required of contract markets with respect to their

[[Page 385]]

member futures commission merchants under these regulations; or
    (iii) An individual registered as an associated person of a 
specified person registered as a futures commission merchant or as an 
introducing broker under the Act who meets the requirements of 
paragraphs (b)(1)(i) or (b)(1)(ii), respectively, of this section, and 
such registration shall not have expired, been suspended (and the period 
of suspension has not expired) or been revoked.
    (2) Any person registered or required to be registered as a futures 
commission merchant or as an introducing broker under the Act to permit 
another person to become or remain associated with such person as a 
partner, officer, employee, agent or representative (or in any status or 
position involving similar functions) in any capacity involving the 
solicitation or acceptance of an order from an option customer (other 
than in a clerical capacity) for any commodity option transaction, or 
the supervision of any person or persons so engaged, if such person 
knows or should have known that such other person is or was not 
registered as required by this part or that such registration has 
expired, been suspended (and the period of suspension has not expired) 
or been revoked.

(Approved by the Office of Management and Budget under control number 
3038-0007)

[46 FR 54529, Nov. 3, 1981, as amended at 46 FR 63036, Dec. 30, 1981; 47 
FR 57016, Dec. 22, 1982; 48 FR 35301, Aug. 3, 1983; 59 FR 5526, Feb. 7, 
1994]