The Industry Member is required to report Customer information for the entity authorized trader for this account to the CAT.  The Industry Member is not required to report Customer information for any natural persons who are employed by the entity authorized trader and who are authorized to trade for that account on behalf of the entity authorized trader, unless the account holder specifically designates the natural person employee as authorized to trade for the account independent of the authority granted to the entity authorized trader, in which case the Industry Member is also required to report Customer information for that natural person authorized trader to the CAT.  These requirements apply regardless of whether the account holder is a natural person or a legal entity.  

This FAQ response is based on the SEC Staff’s interpretation of the definition of “Customer” in Rule 613(j)(3) that natural persons who are employed by, and authorized to trade for an account on behalf of, an entity authorized trader are not considered different from the entity authorized trader.  The SEC Staff’s interpretation is similar to and consistent with the guidance provided by the SEC in footnote 388 of the Rule 613 Adopting Release, which states that “for the purposes of Rule 613(j)(3), natural persons who are employed by an entity that is an account holder, and who are authorized to trade for that account, are not considered different from the account holders, and are therefore not covered by Rule 613(j)(3)(ii).”