Rule 720. Registration of Options Principals
This rule is no longer applicable effective February 17, 2009.
No member organization shall transact any business with the public in option contracts unless those persons engaged in the management of the member organization's business pertaining to option contracts are registered with and approved by the Exchange as Options Principals. No individual member shall transact any business directly with the public in option contracts unless he is registered with and approved by the Exchange as an Options Principal. In connection with their registration, Options Principals shall file an application with the Exchange on a form prescribed by the Exchange and shall successfully complete an examination prescribed by the Exchange for the purpose of demonstrating an adequate knowledge of options trading generally, the Rules of the Exchange applicable to trading of option contracts and the rules of The Options Clearing Corporation. In the event the employment of any Registered Options Principal is terminated or any Registered Options Principal ceases to act in such capacity, such fact shall be reported promptly to the Exchange together with a brief statement of the reason therefor.
• • • Supplementary Material: --------------
.10 Each member organization shall be required to designate a Senior Registered Options Principal who is a general partner or officer as the person responsible for overall supervision and training in areas relating to transactions in option contracts.
.20 Each individual member who transacts business with the public in Government security option contracts or GNMA option contracts and each person associated with a member organization that transacts such business with the public who is engaged in the management of such business of the member organization shall, in addition to filing the application and successfully completing the examination specified above in this Rule, successfully complete an examination prescribed by the Exchange for the purpose of demonstrating adequate knowledge of options trading in each kind of options contract (i.e., Government security or GNMA for which he bears responsibility.)
.30 The Exchange may waive the examination prescribed in the third sentence of this Rule if the applicant previously has passed an examination and is currently approved as a Registered Options Principal by another exchange or association having standards of approval acceptable to the Exchange. The Exchange may waive the examination prescribed in Supplementary Material .20 if the applicant preivously has passed an examination demonstrating adequate knowledge of trading in Government security options or GNMA options and is currently approved as a Registered Options Principal for the supervision of customer accounts in Government security option contracts or GNMA option contracts by another exchange or association having standards of approval acceptable to the Exchange.
.40 See Rule 722 (Supervision of Accounts) for additional requirements regarding the duties and responsibilities of Registered Options Principals, Senior Registered Options Principals, Compliance Options Principals and Branch Office Managers.
.50 Any filing or submission required under this rule which is made with a properly authorized agent acting on behalf of the Exchange shall for purposes of this rule be deemed to be a filing with the Exchange.
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Amendment. October 7, 1982. |