Conflicts and Affiliations

\82\ 17 CFR 1.52(c)(2)(i), (d)(2)(ii)(C)(1). --------------------------------------------------------------------------- As described above, Commission Regulation 1.52 permits two or more SROs to file with the Commission a plan for delegating to a DSRO, for any FCM that is a member of more than one such SRO, the function of monitoring and examining that FCM for compliance with minimum financial and related reporting requirements.\83\ The SROs participating in such a plan form a JAC which establishes and operates a Commission-approved Joint Audit Program and designates the DSRO responsible for the examination of each FCM.\84\ Under this framework, the assignment of a particular FCM to a particular DSRO is made by the JAC pursuant to the plan; the FCM itself plays no role in selecting its DSRO and is notified of the DSRO to which it has been assigned.\85\ --------------------------------------------------------------------------- \83\ 17 CFR 1.52(d)(1). \84\ 17 CFR 1.52(d)(2)(i). \85\ See 17 CFR 1.52(i)(2). --------------------------------------------------------------------------- There is currently one Joint Audit Program, which has its origins in a Joint Audit Agreement entered into in 1984 by a number of futures exchanges and NFA, under which an FCM that is a member of more than one SRO is assigned a single DSRO primarily responsible for conducting periodic financial examinat