PURPOSE: This rule prescribes the books and records to be kept by broker-dealers.

1. (1) Every broker-dealer shall make and keep current the following books and records relating to his/her business (provided, however, that compliance with the requirements of the Securities and Exchange Commission with respect to maintenance of books and records shall be deemed to be compliance with this rule):

   1. (A) Blotters (or other records of original entry) containing an itemized daily record of all purchases and sales of securities, all receipts and deliveries of securities (including certificate numbers), all receipts and disbursements of cash and all other debits and credits. The record shall show the account for which each such transaction was effected, the name and amount of securities, the unit and aggregate purchase or sale price (if any), the trade date and the name or other designation of the person from whom purchased or received or to whom sold or delivered;
   2. (B) Ledgers (or other records) reflecting all assets and liabilities, income and expense and capital accounts;
   3. (C) Ledger accounts itemized separately as to cash and margin account of every customer and of those broker-dealer, partners, agents and their employees, all purchases, sales receipts and deliveries of securities and commodities for those account and all other debits and credits to that account;

   4. (D) Ledgers (or other records) reflecting the following:

      1. 1. Securities in transfer;
      2. 2. Dividends and interest received;
      3. 3. Securities borrowed and securities

loaned;

1. 4. Moneys borrowed and moneys loaned

(together with a record of the collateral therefor and substitutions in collateral); and

1. 5. Securities failed to receive and failed

to deliver;

1. (E) A securities record or ledger reflecting separately for each security as of the clearance dates all long or short positions (including securities in safekeeping) carried by that broker-dealer for his/her account or for the account of his/her customers or partners and showing the location of all securities long and the offsetting position to all securities short and in all cases the name or designation of the account in which each position is carried;
2. (F) A memorandum of each brokerage order, and of any other instruction, given or received for the purchase or sale of securities, whether executed or unexecuted. The memorandum shall show the terms and conditions of the order, and of any other instruction, given or cancellation thereof, the account for which entered, the time of entry, the price at which executed and, to the extent feasible, the time of execution or cancellation. Orders entered pursuant to the exercise of discretionary power by that broker-dealer, or his/her employee, shall be so designated. The term instruction shall be deemed to include instructions between partners and employees of a broker-dealer. The term time of entry shall be deemed to mean the time when that broker-dealer transmits the order or instructions for execution or, if it is not so transmitted, the time when it is received;
3. (G) A memorandum of each purchase and sale of securities for the account of that broker-dealer showing the price and, to the extent feasible, the time of execution;
4. (H) Copies of confirmations of all purchases and sales of securities, copies of all memoranda forwarded to purchasers executing unsolicited orders and copies of all other debits and credits for securities, cash and other items for the account of customers and partners of that broker-dealer;
5. (I) A record in respect of each cash and margin account with that broker-dealer containing the name and address of the beneficial owner of that account and, in the case of a margin account, the signature of the owner; provided that, in the case of a joint account or an account of a corporation, the records are required only in respect of the person(s) authorized to transact business for that account; and
6. (J) A record of all puts, calls, spreads, straddles and other options in which that broker-dealer has any direct or indirect interest or which that broker-dealer has granted or guaranteed, containing, at least, an identification of the security and the number of units involved. Those records shall not be required with respect to any cash transaction of one hundred dollars ($100) or less involving only subscription rights or warrants which by their terms expire within ninety (90) days after the issuance thereof.

1. (2) This rule shall not be deemed to require a member of a national securities exchange to make or keep such records of transactions cleared for the member by another member as are customarily made and kept by the clearing member.

2. (3) Every agent, on behalf of the broker-dealer with whom s/he is registered, shall make and keep current the following books and records relating to his/her business, which shall be the property of that broker-dealer:

   1. (A) Holding pages (or other records) that show, by client, each security purchase or sale, the date on which the purchase or sale was effected, the quantity bought or sold, the price at which the security was bought or sold, whether the transaction was a purchase or sale and, if not a long transaction, the type of transaction;
   2. (B) Cross-reference sheets (or other records) that show, by security, the names of the agent’s clients who hold the security and the quantity held by those clients (provided, however, that no such record will be required if five (5) or fewer of the agent’s clients hold a particular security); and
   3. (C) New account pages (or other records) that show the client’s income, net worth (exclusive of home, farm, automobiles and furnishings) and the client’s investment objective.

AUTHORITY: sections 409.203 and 409.413(a), RSMo 1986.* Original rule filed June 25, 1968, effective Aug. 1, 1968. Amended: Filed May 21, 1969, effective Aug. 1, 1969. Amended: Filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Amended: Filed Oct. 16, 1986, effective Feb. 12, 1987.

*Original authority: 409.203, RSMo 1967 and 409.413, RSMo 1967.