Proposed Rule2017 | 2016 | 2015 | 2014 | 2013 | Show more years
(additions are underscored)
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SECTION 13. FOREX DEALER MEMBER WEEKLY REPORTS
(a) Each Forex Dealer Member must file weekly electronic reports showing liabilities to customers and other financial information required by NFA. The report must be prepared as of the last business day of the week and must be filed by noon on the following business day in the format and using the electronic filing method provided by NFA.
(1) No Forex Dealer Member may access NFA's electronic financial reports database until NFA has assigned it a unique identifying code and password. Each Forex Dealer Member is responsible for maintaining the security and confidentiality of its identifying code and password and that of each person it authorizes to file weekly electronic reports on its behalf.
(2) Submitting the report certifies that the person filing it is duly authorized to bind the Forex Dealer Member and that, to the best of that person's knowledge, all information in the report is true, correct, and complete.
(b) Each weekly report that is filed after it is due shall be accompanied by a fee of $200 for each business day it is late. Payment and acceptance of the fee does not preclude NFA from filing a disciplinary action for failure to comply with the deadlines imposed by this rule.
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FOREX TRANSACTIONS WITH FOREX DEALER MEMBERS INTERPRETIVE NOTICE
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B. COMPLIANCE RULE 2-36
1. Disclosure - Members must provide retail forex customers with understandable and timely disclosure on essential features of forex trading.
At or before the time a retail customer first engages in a forex transaction, a Forex Dealer Member and its Associates should provide the customer sufficient information concerning the characteristics and particular risks of entering into forex transactions. This information must include the following statement prominently displayed:
The transactions you are entering into with [Member] are not traded on an exchange. Therefore, under the U.S. Bankruptcy Code, your funds may not receive the same protections as funds used to margin or guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy. Since that same priority has not been given to funds used for off-exchange forex trading, if [Member] becomes insolvent and you have a claim for amounts deposited or profits earned on transactions with [Member], your claim may not receive a priority. Without a priority, you are a general creditor and your claim will be paid, along with the claims of other general creditors, from any monies still available after priority claims are paid. Even customer funds that [Member] keeps separate from its own operating funds may not be safe from the claims of other general and priority creditors.