Other Prohibited Acts/Transactions to Implement Section 33 of the Rules

August 18, 1988 SEC-BED * MEMORANDUM CIRCULAR NO. 09-88 TO : Manila International Futures Exchange, Inc. Manila International Futures Clearing House, Inc. Commodity Futures Brokers/Merchants RE : Other Prohibited Acts/Transactions to Implement Section 33 of the Rules In order to further ensure that no fraudulent transaction is executed and that the provision of Section 33 of the Rules on Commodity Trading is effectively implemented and enforced, the Commission hereby mandates that: 1. Except as a Commodity broker, no officer or director of a broker house shall have any other interest directly or indirectly in any client's account; relatives within the second degree of consanguinity or affinity trading in any broker house shall be disclosed by submitting the names of the same to the Commission regularly; cdlex 2. Trading accounts in the name of fictitious persons are prohibited. There shall be a register kept for all numbered accounts and the identities of the persons owning such accounts which shall be open for examination by the Commission; 3. To avoid influencing price fluctuations of a commodity, no two or more house accounts of different broker houses shall trade with each other or with one another; 4. The Brokers shall submit to the Commission within the first five (5) days of every month a report on transaction of settlement indicating therein the parties to the transaction when the same was opened up to the settlement thereof. 5. The Manila International Futures Clearing House (Clearing House) shall copy furnish the Commission on all violations of brokers, particularly on the inability to meet margin calls. cdll For your strict compliance. (SGD.) ROSARIO N. LOPEZ Associate Commissioner