Whole Section

  • 12.20 Soft Dollar Commissions

    • 12.20.1

      A Trading Member and its Trading Representatives may receive goods and services from a broker for directing business to the broker if:—

      (1) the goods and services can reasonably be expected to assist in the provision of services to the customer;
      (2) records of the goods and services received are maintained; and
      (3) there are appropriate internal controls and procedures for such arrangements.

      Refer to Practice Note 12.20.1.

    • 12.20.2

      A Trading Member may pay for goods and services to customers for directing business to the Trading Member if:—

      (1) records of such payments are maintained;
      (2) there are procedures to control such arrangements; and
      (3) the arrangements do not violate any law, regulation or professional code of ethics on the part of the recipients.

      Refer to Practice Note 12.20.1.