Tenn. Comp. R. & Regs. 0780-01-32-.03

Current through June 26, 2024

Section 0780-01-32-.03 - SALE OF EXCHANGE-TRADED CALL OPTIONS

Any domestic insurance company can sell, on an exchange but not otherwise, exchange-traded call options solely with respect to stock which it owns, but cannot sell any other exchange-traded call options. Any domestic insurance company selling such an option:

(a) shall enter into a custodial or escrow agreement which provides that its escrowed stock shall be kept segregated by the bank or other custodian from other stock or other securities owned by others, which are deposited with the same bank or other custodian, and

(b) must obtain and retain in its possession a copy of an escrow receipt identifying with particularity the escrowed stock.

Tenn. Comp. R. & Regs. 0780-01-32-.03

Original rule filed January 21, 1976; effective February 20, 1976.

Authority: T.C.A. §§ 56-1-701, 56-3-302, 56-3-303, 56-3-304, 56-19-114, 56-21-104, 56-23-110, and 56-23-111.