Source: http://www.law.cornell.edu/cfr/text/17/155.4?quicktabs_7=3
Timestamp: 2015-01-31 09:25:39
Document Index: 338669570

Matched Legal Cases: ['art 155', '§ 155', '§ 1', '§ 1', '§ 155', '§ 552', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 12', '§ 19']

17 CFR 155.4 - Trading standards for introducing brokers. | LII / Legal Information Institute
CFR › Title 17 › Chapter I › Part 155 › Section 155.4 17 CFR 155.4 - Trading standards for introducing brokers.
§ 155.4
Trading standards for introducing brokers.
Each introducing broker shall, at a minimum, establish and enforce internal rules, procedures and controls to:
Insure, to the extent possible, that each order received from a customer which is executable at or near the market price is transmitted to the futures commission merchant carrying the account of the customer before any order in any future or in any commodity option in the same commodity for any proprietary account, any other account in which an affiliated person has an interest, or any account for which an affiliated person may originate orders without the prior specific consent of the account owner, if the affiliated person has gained knowledge of the customer's order prior to the transmission to the floor of the appropriate contract market of the order for a proprietary account, an account in which the affiliated person has an interest, or an account in which the affiliated person may originate orders without the prior specific consent of the account owner; and
Prevent affiliated persons from placing orders, directly or indirectly, with any futures commission merchant in a manner designed to circumvent the provisions of paragraph (a)(1) of this section.
No introducing broker or any of its affiliated persons shall:
Disclose that an order of another person is being held by the introducing broker or any of its affiliated persons, unless such disclosure is necessary to the effective execution of such order or is made at the request of an authorized representative of the Commission, the contract market on which such order is to be executed, or a futures association registered with the Commission pursuant to section 17 of the Act; or
Knowingly take, directly or indirectly, the other side of any order of another person revealed to the introducing broker or any of its affiliated persons by reason of their relationship to such other person, except with such other persons's prior consent and in conformity with contract market rules approved by or certified to the Commission.
In the case of a customer who does not qualify as an “institutional customer” as defined in § 1.3(g) of this chapter, an introducing broker must obtain the customer's prior consent through a signed acknowledgment, which may be accomplished in accordance with § 1.55(d) of this chapter.
No affiliated person of an introducing broker shall have an account, directly or indirectly, with any futures commission merchant unless:
Such affiliated person receives written authorization to maintain such an account from a person designated by the introducing broker with which such person is affiliated with responsibility for the surveillance over such account pursuant to paragraph (a)(2) of this section; and
Copies of all statements for such account and of all written records prepared by such futures commission merchant upon receipt of orders for such account pursuant to § 155.3(c)(2) are transmitted on a regular basis to the introducing broker with which such person is affiliated.
[48 FR 35304, Aug. 3, 1983, as amended at 66 FR 53523, Oct. 23, 2001; 70 FR 5924, Feb. 4, 2005; 77 FR 66349, Nov. 2, 2012]
Title 17 published on 2014-04-01no entries appear in the Federal Register after this date.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.United States CodeU.S. Code: Title 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES§ 552b - Open meetings
U.S. Code: Title 7 - AGRICULTURE§ 6b - Contracts designed to defraud or mislead§ 6c - Prohibited transactions§ 6g - Reporting and recordkeeping§ 6j - Restrictions on dual trading in security futures products on designated contract markets and registered derivatives transaction execution facilities§ 6k - Registration of associates of futures commission merchants, commodity pool operators, and commodity trading advisors; required disclosure of disqualifications; exemptions for associated persons§ 12a - Registration of commodity dealers and associated persons; regulation of registered entities§ 19 - Consideration of costs and benefits and antitrust laws
Statutes at Large92 Stat. 865 CFR ToolboxWex: Securities Law: Overview@CLS: Securities Law Clinic; Clarke Business Law InstituteView eCFRTable of Popular NamesParallel Table of Authorities