oreign Exchange Compliance For Futures
There are certain guidelines set by the self regulatory foreign exchange organization regarding futures trading in forex markets. The guidelines are known as foreign exchange compliance for futures.
It is of great significance for foreign exchange currency traders to have a proper knowledge about forex compliance for futures as it will help then to understand the whole process in a better way. Collated here is the list of the main points taken from the general self examination checklist for the category of Futures compliance for foreign exchange. Take a look at the below presented information to have a better understanding about the foreign exchange compliance for futures trading:
Guidelines for foreign exchange compliance for futures trading:
• There must be a proper security futures principal at designated at every head office and the branch offices.
• Refer to the central registration depository policy to get details on prospective employees who are going to be the part of the security futures activities. A copy must be obtained and reviewed in this regard.
• A risk disclosure statement must be provided before the account opening.
•The following details in addition to the above stated details must be obtained and provided to the customers:
o a proof supporting that the customer account is speculative or hedge;o the employment status;
o Estimate of the liquid net worth;
o information about marital status and the number of dependents.
• It is necessary that the customer account record include the name of the associate and the details describing how the customer account information was obtained and the date the required risk disclosure statement was provided.
• A quarterly report must be submitted with the regulatory authority regarding written customer complaints.
• A document disclosing the source of any statistical tables, charts, graphs or other illustrations from a source other than the member, unless the source of the information is otherwise obvious.
• Supporting documentation will be furnished upon request if it includes any claims, comparisons, recommendations, statistics or other technical data;
• It must be ensured that the promotional material meets the following requirements:
1. Identity document of the member with all the details like date that the material when first used,2. Contact information for obtaining a copy of the disclosure statement for security futures products