3967. Supervision of retail futures contract and futures contract options accounts

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    1. The designated Supervisor is responsible for: 

      1. reviewing and approving client loss limits when they are set annually, taking into consideration previous losses, and

      2. ensuring that all recommendations made for an account are and continue to be suitable for the client and put the client’s interest first. 

    2. The Dealer Member must ensure that only futures contract and futures contract options qualified Registered Representatives, Investment Representatives, Portfolio Managers and Associate Portfolio Managers trade in or advise on futures contracts or futures contract options.

    3. The designated Supervisor must review all discretionary and managed futures contract and futures contract options accounts on a daily and monthly basis.

    4. The Dealer Member’s  policies and procedures must specifically address proper handling of positions with pending delivery months.

    5. The Dealer Member must establish procedures to notify clients of:

      1. any changes in the Dealer Member’s business policy, and

      2. new developments in trading and regulation of futures contracts and futures contract options that may impact clients.  

    6. The Dealer Member’s policies and procedures must specifically require the designated Supervisor to approve the solicitation of clients to use futures programs as well as clients’ use of futures contracts or futures contract options.

    There is no history log for this rule.

    There is no history log for this rule.