3950. Supervisory policies and procedures for institutional client accounts

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    1. A Dealer Member that offers institutional client accounts must have policies and procedures that specifically address the supervision and review of trading activity in institutional clients’ accounts.  These policies and procedures must outline the actions to deal with problems or issues identified from supervisory reviews.

    2. In addition to meeting the Dealer Member’s general supervisory obligations, including any relevant obligations relating to trading in securities,  debt securities, options, futures contracts and futures contract options, the policies and procedures relating to the supervision of institutional client accounts must specifically address detecting improper or suspicious account activity including: 

      1. manipulative and deceptive activities

      2. trading in securities on the Dealer Member’s restricted list,

      3. front running by employee or proprietary accounts,

      4. trading in securities that have restrictions on their transfer, and

      5. exceeding position or exercise limits on derivative products.

    There is no history log for this rule.

    There is no history log for this rule.