Regulations Governing Leverage Transaction Merchants Article 5

A futures commission merchant may apply to concurrently operate a leverage transaction merchant and conduct proprietary leverage contract trading at its place of business.An application to concurrently operate a leverage transaction merchant may only be made by a futures commission merchant that engages in proprietary futures trading and that is not concurrently operated by a non-industry enterprise.A futures commission merchant concurrently operating a leverage transaction merchant shall establish a dedicated unit to handle the leverage transaction business, and based on management requirements with respect to its enterprise size, business conditions, and internal controls, shall allocate a sufficient number of competent managerial officers and associated persons who satisfy the eligibility requirements set out in these Regulations.