Special purpose loans to brokers and dealers.

CFR · 2024-01-01 · US · Title 12

(a) (b) (c) (1) (2) (3) (4) (5) (i) Purchase or sale of a security in one market, together with an offsetting sale or purchase of the same security in a different market at nearly the same time as practicable, for the purpose of taking advantage of a difference in prices in the two markets; or (ii) Purchase of a security that is, without restriction other than the payment of money, exchangeable or convertible within 90 calendar days of the purchase into a second security, together with an offsetting sale of the second security at or about the same time, for the purpose of taking advantage of a concurrent disparity in the price of the two securities. (6) (7) (8) (9) (i) Credit that Board has exempted by order upon a finding that the exemption is necessary or appropriate in the public interest or for the protection of investors, provided the Securities Investor Protection Corporation certifies to the Board that the exemption is appropriate; or (ii) Credit to a customer for the purpose of making a subordinated loan or capital contribution to a broker or dealer in conformity with the SEC's net capital rules and the rules of the broker's or dealer's examining authority, provided: (A) The customer reduces the credit by the amount of any reduction in the loan or contribution to the broker or dealer; and (B) The credit is not used to purchase securities issued by the broker or dealer in a public distribution. (10) Credit to clearing brokers or dealers. Credit to a member of a nationa

official document · source cfr-2024 · id 12:§ 221.5