Frequently Asked Questions Regarding Fidelity Bonds under Rule 4360
Q: Is the exemption under paragraph (f)(1)(B) of Rule 4360 for “members whose business is solely that of a Designated Market Maker... and who does not conduct business with the public” available to members whose business consists solely of market making activities on one or more national securities exchanges, regardless of whether the member is designated or registered in such capacity on a particular exchange?
A: Yes, the exemption under paragraph (f)(1)(B) is available to members whose sole business is equivalent to that of a Designated Market Maker and who do not conduct business with the public.