CFTC Form 1-FR-IB Instructions - National Futures Association
CFTC Form 1-FR-IB Instructions - National Futures Association
CFTC Form 1-FR-IB Instructions - National Futures Association
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(5) Conversion Accounts. Where a broker or dealer is long<br />
equivalent units of the underlying security, long an unlisted put<br />
written or endorsed by a broker or dealer and short an unlisted call<br />
in his proprietary or other accounts, deducting 10 percent (or 50<br />
percent of such other percentage required by paragraphs (A) through<br />
(K) of paragraph (c)(2)(vi) of 17 C<strong>FR</strong> 240.15c3-1 or 5 percent where a<br />
broker or dealer operates pursuant to paragraph (f) of 17 C<strong>FR</strong><br />
240.15c3-1) of the market value of the underlying security.<br />
(6) Where a broker or dealer is short equivalent units of the<br />
underlying security, long an unlisted call written or endorsed by a<br />
broker or dealer and short an unlisted put in his proprietary or other<br />
accounts, deducting 10 percent (or 50 percent of such other percentage<br />
required by paragraphs (A) through (K) of paragraph (c)(2)(vi) of 17<br />
C<strong>FR</strong> 240.15c3-1) of the market value of the underlying security.<br />
(7) Long Over-the-Counter Options. Where a broker or dealer is<br />
long an unlisted put or call endorsed or written by a broker or<br />
dealer, deducting 30 percent (or such other percentage required by<br />
paragraphs (A) through (K) of paragraph (c)(2)(vi) of 17 C<strong>FR</strong> 240.15c3-<br />
1 or 15 percent where a broker or dealer operates pursuant to<br />
paragraph (f) of 17 C<strong>FR</strong> 240.15c3-1) of the market value of the<br />
underlying security, not to exceed any value attributed to such option<br />
in paragraph (c)(2)(i) of 17 C<strong>FR</strong> 240.15c3-1.<br />
(8) Listed Options. Where a broker or dealer is long listed<br />
options and there is no offsetting security position, deducting 50<br />
percent of the market value of any net long positions in options in<br />
the same underlying security, with the same exercise price and the<br />
same expiration date. Where a broker or dealer has a net short<br />
position in an option in the same underlying security, with the same<br />
exercise price and the same expiration date and for which the broker<br />
or dealer does not have a related position in the underlying security<br />
or an option position otherwise provided for in this Appendix (A), the<br />
deduction shall be determined as provided in paragraph (c)(1) or (2)<br />
of this Appendix (A).<br />
(9) Certain Security Positions with Offsetting Options. Where a<br />
broker or dealer is long a security for which he is also long a listed<br />
put (such broker or dealer may in addition be short a call),<br />
deducting, after the adjustments provided in paragraph (b) of this<br />
Appendix (A), 30 percent (15 percent in the case of a broker or dealer<br />
operating pursuant to paragraph (f) of 17 C<strong>FR</strong> 240.15c3-1) of the<br />
market value of the long security position not to exceed the amount by<br />
which the market value of equivalent units of the long security<br />
position exceeds the exercise value of the put. Provided, That if the<br />
exercise value of the put is equal to or exceeds the market value of<br />
equivalent units of the long security position, no percentage<br />
deduction shall be applied.<br />
(10) Where a broker or dealer is short a security for which he<br />
is also long a listed call (such broker or dealer may in addition be<br />
short a put), deducting, after the adjustments provided in paragraph<br />
(b) of this Appendix (A), 30 percent of the market value of the short<br />
security position not to exceed the amount by which the exercise value
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