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Code of Federal Regulations Title 17. Commodity and Securities Exchanges § 17.230.134a Options material not deemed a prospectus

Current as of January 02, 2025 | Updated by Findlaw Staff

Written materials, including advertisements, relating to standardized options, as that term is defined in Rule 9b–1 under the Securities Exchange Act of 1934, shall not be deemed to be a prospectus for the purposes of section 2(10) of the Securities Act of 1933;  Provided, That such materials are limited to explanatory information describing the general nature of the standardized options markets or one or more strategies;  And, Provided further, That:

(a) The potential risks related to options trading generally and to each strategy addressed are explained;

(b) No past or projected performance figures, including annualized rates of return are used;

(c) No recommendation to purchase or sell any option contract is made;

(d) No specific security is identified, other than

(1) An option or other security exempt from registration under the Act, or

(2) An index option, including the component securities of the index;  and

(e) If there is a definitive options disclosure document, as defined in Rule 9b–1 under the Securities Exchange Act of 1934, the materials shall contain the name and address of a person or persons from whom a copy of such document may be obtained.

(Authority:  15 U.S.C. 77a et seq.;  secs. 2, 7, 10, 19(a), 48 Stat. 74, 78, 81, 85;  secs. 201, 205, 209, 210, 48 Stat. 905, 906, 908;  secs. 1–4, 8, 68 Stat. 683, 685;  sec. 12(a), 73 Stat. 143;  sec. 7(a), 74 Stat. 412;  sec. 27(a), 84 Stat. 1433;  sec. 308(a)(2), 90 Stat. 57)

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Cite this article: FindLaw.com - Code of Federal Regulations Title 17. Commodity and Securities Exchanges § 17.230.134a Options material not deemed a prospectus - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-17-commodity-and-securities-exchanges/cfr-sect-17-230-134a/

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