Some Members routinely elicit additional items, such as liquid net worth, risk capital, or number of dependents, which may be quite useful, and NFA received comments on the Rule when it was drafted in 1985 suggesting that these items be required by the Rule. In addition, the use of this program in no way lessens the requirement that Members review, approve and supervise the use of all of their promotional material. So the correct answer is has. What is computer hardware. An appreciation of the risks of futures trading must be gained and a determination of its appropriateness made at the time each customer makes a decision to trade futures in the first place.
Any transaction that is carried as a SIMEX trade by an FCM Member for the account of a U. customer (except trades which under Bylaw 1301(b) are not assessable) will be subject to an NFA assessment fee. The Member should follow up to ensure that any deficiencies are addressed and corrected. Adorned with fine wires 7 little words. In conclusion, NFA recognizes that certain provisions of Compliance Rule 2-30 are stated in general terms. Furthermore, the impact of the up front charges on net performance must be included in the rate of return figures reflected on a CPO's or CTA's required past performance presentation.
The second of these determinations is relatively simple. Communications with the Public and Promotional Material - No Member or Associate shall make any communication with potential or current customers that is not in accordance with the requirements set forth under NFA Compliance Rule 2-29 and the Interpretative Notices related to this rule. NFA's filing software also includes procedures for the appropriate representative of the NFA Member FCM, RFED or IB to attest to the completeness and accuracy of the financial report in order to comply with NFA and CFTC certification and attestation requirements. Initial Organizational Expenses (3)||200|. In general, third-party payments should not be accepted. Additionally, this Notice's disclosure guidelines are inapplicable to transfers made pursuant to an FCM's customer agreement's provisions whereby a customer authorizes the transfer of funds from a regulated commodity account to any other account maintained by the customer at the FCM or one of its affiliates as may be necessary to avoid a margin call or to reduce the debit balance in the other account, or to satisfy any other obligation to the FCM or its affiliates. Each Member should review its list of customers. A review of NFA policy, procedures and past disciplinary actions, however, clearly indicates that NFA Bylaw 1101 has not been enforced unreasonably. Conducted 7 little words. Each CPO Member, however, must conduct its own review to identify any other areas that should be included in the CPO's internal controls system based on the CPO's size, operations and activities. For example, some Members have utilized promotional material that presents hypothetical rates of return in large, bold-face print while the disclaimer can be read only with a magnifying glass. This information may include personally identifying information (PII) for individuals such as social security numbers and confidential or sensitive information for institutional customers and counterparties, including corporate records and financial information.
OPTIONS CONTRACTS TRADED ON. Notional funds represent the difference between nominal account size and actual funds in a client's account. Less: Trades in an omnibus account cleared by another FCM Member for which the clearing FCM Member has agreed to pay the NFA assessment fee on your behalf||(_____)|. For cash-settled contracts in particular, upon expiration, an individual will no longer have an economic interest in the securities underlying the security futures contract. A Member firm's branch offices and guaranteed IBs should hold themselves out to the public in their registered names only, and branch offices should not be separately incorporated entities. This required margin deposit also is referred to as a "performance bond. This is because the customer's equity decreases as the settlement price rises and increases as the settlement price falls. Wires collectively 7 little words daily. Why is 25% of people are correct? The Commodity Exchange Act (CEA or Act) gives the Commodity Futures Trading Commission (CFTC or Commission) jurisdiction over certain off-exchange foreign currency transactions offered to or entered into with retail customers. Definition of Disciplined Firm. If any Member has questions concerning how this Interpretive Notice would apply to its operations, please contact NFA's Compliance Department.
Securities Loans for Cash Financing. 9050 - NFA COMPLIANCE RULE 2-30(b): RISK DISCLOSURE STATEMENT FOR SECURITY FUTURES CONTRACTS. The Member should disclose, in advance, the factors that could reasonably be expected to materially affect the system's performance (e. g., periods of stress) and the means available for contacting the Member during a system outage or slow-down. However, if the identity of the suspect involved is unknown on the date the firm first becomes aware of the initial detection, the firm may delay filing up to an additional 30 days in order to identify the suspect. A CMIR must also be filed if the firm receives in the United States any currency or other monetary instrument in aggregate exceeding $10, 000 at one time which has been transported, mailed or shipped from outside the United States. In addition, FCMs should advise customers of any conflicts of interest in connection with the offered programs, including whether the FCM receives compensation or other benefits for customer balances maintained in the sweep account, and the FCM should advise the customer which entity to contact to gain access to any swept funds. Conduct that may violate Compliance Rule 2-4 includes: - Misusing sensitive personal information, such as a social security number or purposefully or recklessly violating the firm's privacy policy; - Disclosing customer orders prior to execution (except as permitted by exchange rules); or. 2 If the CTA is providing the written confirmation, the information may be included in the advisory agreement or delivered to the client as a separate document as long as the written confirmation is provided to the client before the CTA places the first trade for that client. Compliance Rule 2-29(g) allows the Compliance Department to implement filing requirements for any FCM, IB, CPO and CTA Member. ATTN: TREASURER'S OFFICE.