Market regulation · 09/05/1997

Bunched Orders and Account Identification

The Commodity Futures Trading Commission (``Commission'') hereby is issuing an Interpretation regarding the account identification requirement of Commission Regulation 1.35(a-1)(2)(i) as it pertains to the practice of combining orders for different accounts into a single order for placement and execution, i.e., ``block'' or ``bunched'' orders. The Commission simultaneously is issuing an Order approving the National Futures Association (``NFA'') Interpretive Notice to NFA Compliance Rule 2-10 Relating to the Allocation of Block Orders for Multiple Accounts (``NFA Notice'').\1\ This Interpretation provides that, with respect to bunched orders, compliance with the guidance provided in the NFA Notice, incorporated herein, and with the Commission guidance provided in this Interpretation, will be deemed by the Commission to be compliance with the account identification requirement of the above-cited regulation. The Commission also is providing an opportunity for comment prior to this Interpretation and Approval Order becoming effective.