§ 240.17a-3 — Records to be made by certain exchange members, brokers and # dealers.

Rule 17a-3 requires every registered broker-dealer to make and keep current a specified set of records. The records enumerated in paragraph (a) are the principal day-to-day operational records of a securities business.

(a) Required records.

Every broker-dealer shall make and keep current the following books and records:

1. **Blotters** (or other records of original entry) containing an itemized daily record of all purchases and sales of securities, all receipts and deliveries of securities (including certificate numbers where applicable), all receipts and disbursements of cash, and all other debits and credits. Such records shall show the account for which each transaction was effected, the name and amount of the securities, the unit and aggregate purchase or sale price (if any), the trade date, and the name or other designation of the person from whom purchased or received or to whom sold or delivered. 2. Ledgers (or other records) reflecting all assets and liabilities, income and expense, and capital accounts. 3. Ledger accounts (or other records) itemizing separately as to each cash and margin account of every customer and of such broker-dealer and partners thereof, all purchases, sales, receipts, and deliveries of securities and commodities for such account and all other debits and credits to such account. 4. Ledgers (or other records) reflecting the following: (i) Securities in transfer; (ii) Dividends and interest received; (iii) Securities borrowed and securities loaned; (iv) Moneys borrowed and moneys loaned (together with a record of the collateral therefor and any substitutions thereof); and (v) Securities failed to receive and failed to deliver. 5. A securities record or ledger reflecting separately for each security, as of each clearance date, all "long" or "short" positions (including securities in safekeeping and securities that are subjects of repurchase or reverse repurchase agreements) carried by the broker-dealer for its account or for the account of its customers or partners or others, and showing the location of all securities long and the offsetting position to all securities short, with a separate identification of any difference (a "stock record"). 6. A memorandum of each brokerage order, and of any other instruction, given or received for the purchase or sale of securities, whether executed or unexecuted. The memorandum must show the terms and conditions of the order, the account for which it was entered, the time of receipt, and the time of execution or cancellation, as applicable. For market orders, the time of entry shall be the time of receipt of the order; for orders that are executed upon receipt, the memorandum may treat time of receipt and time of execution as identical. Post-execution allocations of block orders must be documented. 7. A memorandum of each purchase or sale of securities for the broker-dealer's own account, showing the price and, to the extent feasible, the time of execution. 8. Copies of confirmations of all purchases and sales of securities, notices of all other debits and credits for securities, cash, and other items for the account of customers. 9. A record, in respect of each cash and margin account with a broker-dealer, containing the name and address of the beneficial owner of such account and, in the case of a margin account, the signature of such owner; provided, that, in the case of a joint account or an account of a corporation, such records shall be kept only in respect of the person or persons authorized to transact business for such account. 10. A record of all puts, calls, spreads, straddles, and other options in which the broker-dealer has a direct or indirect interest. 11. A record of the proof of money balances of all ledger accounts in the form of trial balances, and a record of the computation of aggregate indebtedness and net capital as of the trial-balance date. 12.–(35) Additional records, including records tied to specific operational or regulatory purposes: - (a)(17) — customer account information, including investment objectives, tax identification, and annual confirmation of the information (including the "(a)(17)" updating cycle under paragraph (a)(17)(ii)); - (a)(24) — records of Form CRS delivery dates; - (a)(25) — records of information obtained in compliance with Reg BI (including investment profile); - (a)(35) — records of communications to satisfy the Disclosure Obligation under Reg BI; - Additional enumerated records for various activities.

(b) Electronic records.

Records may be maintained electronically if produced in accordance with Rule 17a-4(f). A broker-dealer that uses electronic records is subject to the non-erasable/non-rewriteable ("WORM") media requirement and to the audit-system requirements of Rule 17a-4(f), discussed below.

(c) Account documentation updates.

For each account for which a broker-dealer is required to make and keep customer-identification records, the broker-dealer shall, at least once every 36 months, furnish a copy of the account record to the customer and request the customer to correct any outdated information. The broker-dealer shall update its records to reflect any returned corrections.