Texas Statutes (Last Updated: January 4, 2014) |
INSURANCE CODE |
Title 4. REGULATION OF SOLVENCY |
Subtitle B. RESERVES AND INVESTMENTS |
Chapter 424. INVESTMENTS FOR CERTAIN INSURERS |
Subchapter E. RISK CONTROL TRANSACTIONS |
Sec. 424.204. TRADING REQUIREMENTS FOR DERIVATIVE INSTRUMENTS
Latest version.
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Each derivative instrument must be:
(1) traded on a securities exchange;
(2) entered into with, or guaranteed by, a business entity;
(3) issued or written by, or entered into with, the issuer of the underlying interest on which the derivative instrument is based; or
(4) in the case of futures, traded through a broker who is:
(A) registered as a futures commission merchant under the Commodity Exchange Act (7 U.S.C. Section 1 et seq.), as amended; or
(B) exempt from that registration under 17 C.F.R. Section 30.10, adopted under the Commodity Exchange Act (7 U.S.C. Section 1 et seq.), as amended.
Added by Acts 2005, 79th Leg., Ch. 727 , Sec. 1, eff. April 1, 2007.