FUTURES CONTRACTS AND FUTURES CONTRACT OPTIONS ACCOUNTS

3257. Additional requirements when opening a futures contract or futures contract option account

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    1. Before entering an initial futures contract or futures contract option trade in an account, a Dealer Member must:

      1. obtain a completed futures contract account application or futures contract options account application from the client,

      2. obtain a signed futures contract or futures contract option trading agreement from the client,

      3. provide the client with the most recent futures disclosure statement or similar statement, and 
      4. record the designated Supervisor’s approval in writing.
    2. The designated Supervisor must determine whether the risk characteristics of the strategies the client intends to use are appropriate for the client and in keeping with his or her investment objectives and risk tolerance. If they are not, the designated Supervisor should restrict the account from using inappropriate strategies and note, on the futures contract account application or the futures contract option application, any trading restrictions imposed and communicate those restrictions to the Registered Representative, Portfolio Manager or Associate Portfolio Manager assigned to the account.

    There is no history log for this rule.

    There is no history log for this rule.