Definitions.

CFR · 2024-01-01 · US · Title 12

The terms used in this part have the meanings given them in section 3(a) of the Act or as defined in this section as follows: (1) The amount at risk is held in the account in cash, cash equivalents, or via an escrow receipt; and (2) The transaction is eligible for the cash account by the rules of the registered national securities exchange authorized to trade the option or warrant or by the rules of the creditor's examining authority in the case of an unregistered option, provided that all such rules have been approved or amended by the SEC. (1) A security means: (i) Throughout the day of the purchase or sale of a security, the security's total cost of purchase or the net proceeds of its sale including any commissions charged; or (ii) At any other time, the closing sale price of the security on the preceding business day, as shown by any regularly published reporting or quotation service. If there is no closing sale price, the creditor may use any reasonable estimate of the market value of the security as of the close of business on the preceding business day. (2) Any other collateral means a value determined by any reasonable method. (1) Any person or persons acting jointly: (i) To or for whom a creditor extends, arranges, or maintains any credit; or (ii) Who would be considered a customer of the creditor according to the ordinary usage of the trade; (2) Any partner in a firm who would be considered a customer of the firm absent the partnership relationship; and (3) Any join

official document · source cfr-2024 · id 12:§ 220.2