Compliance Rules

Part 2 - Rules Governing the Business Conduct of Members Registered with the Commission

RULE 2-2. FRAUD AND RELATED MATTERS.

[Effective date of amendments: March 21, 1983; July 24, 2000 and July 1, 2019.]

No Member or Associate shall:

(a) Cheat, defraud or deceive, or attempt to cheat, defraud or deceive, any commodity futures or swap customer or counterparty;

(b) Bucket a customer's commodity futures order or engage in a business that is of the nature of a bucket shop;

(c) Willfully make or cause to be made to a customer or counterparty a false report, or willfully to enter or cause to be entered for a customer or counterparty a false record, in or in connection with any commodity futures contract or swap;

(d) Disseminate, or cause to be disseminated, false or misleading information, or a knowingly inaccurate report, that affects or tends to affect the price of any commodity that is the subject of a commodity futures contract or swap;

(e) Engage in manipulative acts or practices regarding the price of a commodity futures contract or swap;

(f) Willfully submit materially false or misleading information to NFA or its agents;

(g) Effect a commodity futures or swap transaction on or pursuant to the rules of a contract market or swap execution facility for a customer who is subject to a Commission prohibition from trading on or pursuant to the rules of any contract market or swap execution facility, as applicable, unless the Member or Associate did not know or have reason to know of the prohibition;

(h) Embezzle, steal, purloin or knowingly convert any money, securities or other property received from or accruing to a customer, client, pool participant or counterparty in or in connection with a commodity futures contract or swap; or

(i) Act in any capacity requiring registration under the Act unless the Member or Associate is either registered in that capacity or exempt from registration.