6642. Definitions

The following terms shall have the following meanings for purposes of the Rule 6640 Series.

(a) "OTC Reporting Facility" means the service that, among other things, accommodates reporting of transactions in direct participation programs (DPPs). The OTC Reporting Facility comparison function will not be available for those DPPs that are not eligible for clearance and settlement through the facilities of the National Securities Clearing Corporation. However, the OTC Reporting Facility will support the entry and inclusion of transaction data on such securities for reporting purposes.

(b) "Date of execution" means the date when the parties to a transaction in a DPP have agreed to all of the essential terms of the transaction, including the price and number of the units to be traded.

(c) "Direct participation program" or DPP, means a program which provides for flow-through tax consequences regardless of the structure of the legal entity or vehicle for distribution including, but not limited to, oil and gas programs, real estate programs, agricultural programs, cattle programs, condominium securities, Subchapter S corporate offerings and all other programs of a similar nature, regardless of the industry represented by the program, or any combination thereof. A program may be composed of one or more legal entities or programs but when used herein, the term shall mean each of the separate entities or programs making up the overall program and/or the overall program itself. Excluded from this definition are real estate investment trusts, tax qualified pension and profit sharing plans pursuant to Sections 401 and 403(a) of the Internal Revenue Code and individual retirement plans under Section 408 of that Code, tax sheltered annuities pursuant to the provisions of Section 403(b) of the Internal Revenue Code, and any company, including separate accounts, registered pursuant to the Investment Company Act of 1940.

(d) "Riskless principal transaction" means a principal transaction where a member, after having received an order to buy, purchases the security as principal to satisfy the order to buy or, after having received an order to sell, sells the security as principal to satisfy the order to sell.

(e) "Time of execution" means the time when the parties to a transaction in a DPP have agreed to all of the essential terms of the transaction, including the price and number of the units to be traded.