ARSD 20:06:19:01. Definitions

Terms used in this chapter mean: (1) "Call option," an exchange-traded option contract granting the holder of the option the right to purchase a specified amount of the underlying security in accordance with the terms of the option contract; (2) "Put option," an exchange-traded option contract granting the holder of the option the right to sell a specified amount of the underlying security in accordance with the terms of the option; (3) "Closing purchase transaction," the purchase of an exchange-traded call or put option to reduce or eliminate the obligations of a call or put option writer on an option contract or contracts previously sold; (4) "Closing sale transaction," the sale of an exchange-traded call or put option to reduce or eliminate the obligations of a call or put option purchase on an option contract or contracts previously purchased; (5) "Escrowed securities," securities owned by an insurance company subject to a custodial agreement; (6) "Exchange-traded," securities traded on the floor of a national securities exchange registered under the Securities Exchange Act of 1934 (15 U.S.C. 78(a) et seq.) that has been authorized to provide a market for option contracts pursuant to Rule 9b-1 of the Securities Exchange Act of 1934, as amended through October 13, 1982; (7) "Guaranteed funds," cash or cash equivalents, as defined pursuant to Federal Reserve Regulation T in 12 C.F.R. section 220.1, et seq., as amended through June 26, 1985, owned by an insurance company on which a guarantee letter has been issued; (8) "Underlying security," a stock, debt instrument, or index of a group of securities authorized or permitted under SDCL 58-27-9 to 58-27-19, inclusive, 58-27-21 to 58-27-26, inclusive, 58-27-28, 58-27-29, 58-27-32, 58-27-36, and 58-27-37 on which options are traded in a registered national securities exchange.