CFTC customer protection rules

HSI risk disclosure

The Commodity Futures Trading Commission (CFTC) requires each futures commission merchant to provide information within the Futures Commission Merchants (FCM)-specific disclosure document to a customer prior to the time the customer first enters into an account agreement or deposits money or securities (funds) with the FCM.

Segregated Funds and Net Capital Information

The CFTC requires each futures commission merchant to make certain financial information available to customers on a rolling 12-month period.

  1. Daily Statement of Segregation Requirements for Customers Trading on U.S Exchanges, Daily Statement of Secured Amounts and Funds held in 30.7 Accounts, and Daily Statement of Cleared Swaps Customer Segregation Requirements and Funds in 4d(f) Accounts

    Daily Segregated, Secured & Sequestered Requirements Archive

  2. Schedule of adjusted net capital, net capital and excess net capital
  3. Required statements and footnotes from current certified annual report

    The following statements can be obtained from the attached statement of financial condition.

    • Statement of Financial Condition - page 3
    • All related footnotes to the schedules that are part of FCM's most current certified annual report; pages 4-27

    Statement of Segregation Requirements and Funds in Segregation - See separate file attached below

    Statement of Secured Amounts and Funds Held in Separate Accounts for 30.7 Customers - See separate file attached below

    Statement of Cleared Swaps Customer Segregation Requirements and Funds in Cleared Swaps Customer Accounts - see separate file attached below

  4. The month-end segregation statement, secured 30.7 statement and cleared swap customer statement that are part of the FCM’s unaudited Form 1-FR-FCM or FOCUS statement required to be made public for the most recent 12-month period. Other financial statements that are part of the FCM’s unaudited Form 1-FR-FCM or FOCUS statement (e.g. Statement of Financial Condition, Statement of Income (Loss), etc.) are not required.

     

    FCM financial information/Investment of customer funds

    Customers should be aware that the National Futures Association (NFA) publishes on its website certain financial information with respect to each FCM. The FCM Capital Report provides each FCM’s most recent month-end adjusted net capital, required net capital, and excess net capital. (Information for a twelve-month period is available.) In addition, NFA publishes twice-monthly a Customer Segregated Funds report, which shows for each FCM: (i) total funds held in Customer Segregated Accounts; (ii) total funds required to be held in Customer Segregated Accounts; and (iii) excess segregated funds, i.e., the FCM’s Residual Interest. This report also shows the percentage of Customer Segregated Funds that are held in cash and each of the permitted investments under Commission Rule 1.25. Finally, the report indicates whether the FCM held any Customer Segregated Funds during that month at a depository that is an affiliate of the FCM.

    The report shows the most recent semi-monthly information, but the public will also have the ability to see information for the most recent twelve-month period. A 30.7 Customer Funds report and a Customer Cleared Swaps Collateral report provides the same information with respect to the 30.7 Account and the Cleared Swaps Customer Account.

    The above financial information reports can be found by conducting a search for a specific FCM in NFA’s BASIC system and then clicking on "View Financial Information" on the FCM’s BASIC Details page.

     

    Additional financial information

    In addition to the FCM’s financial information that is accessible from the NFA, additional information can also be obtained from the CFTC’s website.

     

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