17 C.F.R. § 240.36a1-2
Preliminary Note: OTC derivatives dealers are a special class of broker-dealers that are exempt from certain broker-dealer requirements, including membership in a self-regulatory organization (§ 240.15b 9-2), regular broker-dealer margin rules (§ 240.36a 1-1), and application of the Securities Investor Protection Act of 1970 (§ 240.36a 1-2). OTC derivative dealers are subject to special requirements, including limitations on the scope of their securities activities (§ 240.15a-1 ), specified internal risk management control systems (§ 240.15c 3-4), recordkeeping obligations (§ 240.17a-3(a)(10) ), and reporting responsibilities (§ 240.17a-12 ). They are also subject to alternative net capital treatment (§ 240.15c 3-1(a)(5)).
OTC derivatives dealers, as defined in § 240.3b-12 , shall be exempt from the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aa a through 78lll).
17 C.F.R. §240.36a1-2