खुदरा ऑफ एक्सचेंज विदेशी मुद्रा व्यापार कार्यालय

प्रवीणता आवश्यकताएं ऐसे व्यक्ति जो एकमात्र मालिक एफसीएम, आरएफईडी, 160 आईबी, सीपीओ, सीटीए या इन श्रेणियों के एपी के रूप में पंजीकरण के लिए एनएफए सदस्यता के लिए आवेदन कर रहे हैं, उन्हें प्रवीणता आवश्यकताओं को पूरा करना होगा .60 जब तक वे नीचे सूचीबद्ध विकल्पों के लिए पात्र नहीं हैं, नेशनल कमोडिटी फ्यूचर्स परीक्षा (एनसीएफई या सीरीज 3) अपने आवेदन से पहले दो साल के भीतर। व्यक्तियों को सीरीज 3 की परीक्षा लेने की आवश्यकता नहीं हो सकती है, यदि वे परीक्षा उत्तीर्ण कर चुके हैं कि वे प्रवीणता आवश्यकताओं को पूरा करने के लिए उपयोग करने का इरादा रखते हैं: आवेदन के दो साल के भीतर आवेदन दायर किया गया है या उनके आवेदन की तिथि से दो वर्ष पहले दायर किया गया है और उस तारीख के बाद से लगातार दो वर्षों की अवधि नहीं रही है, जिसके दौरान उन्हें एपी या एफबी के रूप में पंजीकृत नहीं किया गया था या वे एक कुलसचिव के अनुमोदित प्राचार्य नहीं थे या वे वर्तमान में एफबी के रूप में पंजीकृत हैं परीक्षण आवेदन फार्म (U10) 160must ऑनलाइन FINRAs वेबसाइट पर जाकर पूरा किया जा सकता है। आम तौर पर, एनएफए एफआईएनआरए से सीधे प्रमाण प्राप्त करेगा कि व्यक्तियों ने सीरीज 3 या दूसरी परीक्षा उत्तीर्ण की है। असामान्य परिस्थितियों में, एनएफए व्यक्ति को एक प्रमाण पत्र प्रस्तुत करने के लिए अनुरोध कर सकता है कि वह परीक्षा उत्तीर्ण कर चुका है। वैकल्पिक व्यक्ति व्यक्तियों के पंजीकरण की स्थिति और व्यक्तियों के व्यवहार के प्रकार के आधार पर, वे सीरीज 3 परीक्षा में निम्नलिखित विकल्पों में से एक के लिए पात्र हो सकते हैं: फ्यूचर्स मैनेजमेंट फंड परीक्षा (सीरीज 31) एक व्यक्ति 31 सीरीज का उपयोग कर सकता है यदि व्यक्ति एफआईएनआरए के साथ एफआईएनआरए सदस्य फर्म के साथ एक सामान्य प्रतिभूति प्रतिनिधि के रूप में पंजीकृत है, और यह कि एफआईएनआरए सदस्य फर्म एनएफए एफसीएम या आईबी 160 एमबर फर्म या एनएफए एफसीएम या आईबी की सदस्यता के लिए एक आवेदक है और एपी पंजीकरण के लिए व्यक्ति को प्रायोजित करता है, और वह व्यक्ति उस एनएफएफ़आईएनआरए प्रायोजक फर्म की ओर से वायदा गतिविधियों को सीमित करने जा रहे हैं, जो कमोडिटी पूल में भाग लेने के लिए धन, प्रतिभूतियां या संपत्ति की मांग करने के लिए, सीटीए द्वारा प्रबंधित होने वाले विवेकाधीन खातों की मांग करते हैं या ऐसे ही सीमित गतिविधियों को करने वाले व्यक्ति की निगरानी करते हैं। सीमित वायदा परीक्षा - विनियम (सीरीज 32) व्यक्तियों को सीरिज 32 का उपयोग कर सकते हैं, यदि आवेदन पत्र दाखिल करने से पहले दो वर्ष के भीतर, वे संयुक्त राज्य के बाहर एक अधिकार क्षेत्र में वायदा में ग्राहक व्यवसाय की मांग करने के लिए पंजीकृत या लाइसेंस प्राप्त कर चुके हैं (वर्तमान यूके और कनाडा केवल) इस वैकल्पिक परीक्षा के लिए पात्र होने के लिए, आवेदकों को उपयुक्त पंजीकरण या एनएफए को लाइसेंस के प्रमाण पत्र को अतिरिक्त जानकारी या किसी आवेदकों के बाजार ज्ञान से संबंधित दस्तावेज के साथ प्रस्तुत करना होगा जैसे कि उपयुक्त योग्यता परीक्षा का पूरा होना। 160 ब्रिटेन में, एक व्यक्ति आवेदन पत्र दाखिल करने से पहले दो वर्ष के भीतर नियंत्रण कक्ष 30 (सीएफ 30) के रूप में स्वीकृत हो या मंजूरी दे दी जानी चाहिए और डेरिवेटिव में निम्न सर्टिफिकेट्स में से एक भी प्रदान करें: यूनिट 3 8211 डेरीवेटिव्स, यूनिट 7 8211 फाइनेंशियल डेरिवेटिव या यूनिट 9 8211 कमोडिटी डेरिवेटिव या स्तर 4 8211 व्युत्पन्न (निवेश सलाह डिप्लोमा 8211 व्युत्पत्तियां)। अगर एक व्यक्ति को 1 दिसंबर 2001 से सीएफ 30 (पहले से सीएफ 21) के रूप में लगातार अनुमोदित किया गया है, तो उस व्यक्ति को डेरिवेटिव में प्रमाण पत्र प्राप्त करने के प्रमाण प्रदान करने की आवश्यकता नहीं होगी। सीरीज 32 लेने के लिए पात्रता संबंधी कोई भी प्रश्न एनएफए को निर्देशित किया जाना चाहिए। सिक्योरिटीज ग्राहक का रेफरल व्यक्तियों को एफआईएनआरए के साथ एक एफआईएनआरए सदस्य फर्म के साथ एक सामान्य प्रतिभूति प्रतिनिधि के रूप में पंजीकृत होने की आवश्यकता नहीं है, और यह कि एफआईएनआरएए सदस्य फर्म भी एक एनएफए एफसीएम या आईबी सदस्य फर्म या एनएफए एफसीएम या आईबी की सदस्यता के लिए एक आवेदक है और एपी पंजीकरण के लिए व्यक्ति को प्रायोजित करता है, और वह व्यक्ति उस प्रायोजक की ओर से उस प्रायोजक की तरफ से उस वायदा कारोबार को सीमित करने जा रहा है जो उस प्रायोजक के एपी , जो कि रेफरल केवल व्यक्ति प्रायोजक के सामान्य प्रतिभूति प्रतिनिधि के रूप में प्रासंगिक हैं, या उस व्यक्ति की निगरानी करते हैं जो यह एक ही सीमित गतिविधि करते हैं। सीपीओ और सीटीए ट्रेडिंग के लिए छूट मुख्य रूप से प्रतिभूतियां एनएफए पंजीकरण नियम 402 के अंतर्गत होती हैं। एनएफए कुछ ऐसे व्यक्तियों के लिए परीक्षा आवश्यकताओं को माफ़ कर सकते हैं जो सीपीओ से संबद्ध हैं, जिन्हें केवल पंजीकरण कराने की जरुरत है क्योंकि वे मुख्य रूप से प्रतिभूति लेनदेन में लगे कमोडिटी पूल संचालित करते हैं और जो सीटीए जिन्हें केवल पंजीकरण करने की आवश्यकता होती है क्योंकि उनकी सिक्योरिटीज सलाहकार सेवाओं में फ्यूचर्स के उपयोग और जोखिम प्रबंधन के उद्देश्यों के लिए विकल्प शामिल हैं छूट देने का अनुरोध करने वाले व्यक्ति या फर्म को उन तथ्यों का एक लिखित विवरण देना होगा, जो छूट के लिए व्यक्ति को अर्हता प्राप्त कर लेते हैं। एपी, जिनके क्रियाकलाप स्वैप तक सीमित होते हैं, व्यक्तियों को सीएफटीसी के नियमों के अधीन रहते हुए परीक्षा लेने की आवश्यकता नहीं होती है और ये सीमित रहेंगे: सीएफटीसी के अधिकार क्षेत्र के अधीन स्वैप के प्रायोजक आदेशों की ओर से सॉलिसीटिंग या स्वीकार करना कमोडिटी पूल में भागीदारी के लिए प्रायोजक फंड, प्रतिभूतियां या संपत्ति की ओर से सिक्योरिटीः सीडीटीसी या ट्रेडों के अधिकार क्षेत्र के अधीन विशेष रूप से स्वैप करने वाली वस्तुएं कॉमोडिटी पूल में सीएफटीसी के अधिकार क्षेत्र के अधीन और प्रायोजक को दी गई हैं या इस आधार पर अपने एपी के लिए सीरीज 3 से छूट मांग रहा है, लेकिन स्वैप के कारोबार के लिए सीपीटीसी विनियमन 4.5 (सी) (2) (iii) (ए) या सीपीओ के तहत सीपीओ की परिभाषा से बहिष्करण के लिए पात्र होगा। (बी) या सीएफटीसी विनियमन 4.13 (ए) (3) के तहत पंजीकरण से छूट, विवेकाधीन खातों को खोलने के लिए प्रायोजक ग्राहकों की तरफ से सिक्रेट करते हैं जो सीएफटीसी के अधिकार क्षेत्र के अधीन स्वैप व्यापार करते हैं प्रायोजित व्यक्तियों की ओर से पंजीकृत सीटीए या पर्यवेक्षण द्वारा प्रबंधित किया जाना चाहिए, जिनकी गतिविधियों इतनी सीमित हैं एपी, जिनकी गतिविधियों को पूरी तरह से स्वैप तक सीमित किया जाता है, उन्हें परीक्षा आवश्यकताओं से स्वतः छूट होती है। सीपीओ के एपी जो इसे 4.5 (सी) (2) (iii) (ए) या (बी) के तहत कमोडिटी पूल ऑपरेटर की परिभाषा से बाहर रखा जाएगा या 4.13 (ए) (3) के तहत पंजीकरण से मुक्त होगा, लेकिन उनकी स्वैप गतिविधियों के लिए (यानी अगर फ़ैसला न्यूनतम आवश्यकताओं को पूरा करेगी, यदि स्वैप शामिल नहीं किया गया है) स्वचालित रूप से छूट का दावा करने योग्य नहीं होगा। इसके बजाय, एपीएस प्रायोजक को एनएफए के लिए एएफ (एस) के एनएफए पंजीकरण नियम 401 (ई) (2) (2) (ii) के तहत सीरीज 3 लेने से इन परिस्थितियों के आधार पर छूट मांगने के लिए एक हस्ताक्षरित अनुरोध भेजना होगा। एनएफए शाखा प्रबंधक परीक्षा (सीरीज 30) एक शाखा कार्यालय प्रबंधक और एनएफए सदस्य फर्म के एपी हैं, जो व्यक्ति अपने आवेदन से पहले दो साल के भीतर सीरीज 30 पास कर चुके हैं। व्यक्तियों को सीरीज 30 परीक्षा लेने की आवश्यकता नहीं हो सकती है, यदि वे आवेदन की तारीख के दो साल के अंदर सीरीज 30 परीक्षा उत्तीर्ण कर चुके हैं या वे वर्तमान में एक शाखा कार्यालय प्रबंधक के रूप में स्वीकृत हैं या उन्हें 160 शाखा कार्यालय प्रबंधक के रूप में स्वीकृत किया गया था और आवेदक को शाखा कार्यालय प्रबंधक के रूप में वापस लेने की आखिरी तारीख, दो लगातार वर्षों की अवधि नहीं थी, जिसके दौरान वे अस्थायी रूप से एपी के रूप में लाइसेंस प्राप्त नहीं थे या एपी के रूप में पंजीकृत नहीं थे या जिनके प्रायोजक एक पंजीकृत दलाल-व्यापारी हैं प्रमाण प्रदान करें कि वे एफआईएनआरए के नियमों के तहत शाखा कार्यालय प्रबंधक या नामित पर्यवेक्षक के रूप में कार्य करने के लिए योग्य हैं। रिटेल ऑफ एक्सचेंज फ़ॉरेक्स परीक्षा (सीरिज 34) एनएफए बयालो 301 में संशोधन विदेशी मुद्रा फर्म या विदेशी मुद्रा व्यक्ति के रूप में अनुमोदन के लिए व्यक्तिगत रूप से खुदरा ग्राहकों के साथ ऑफ-एक्सचेंज फॉरेक्स कारोबार को सम्मिलित करने से पहले सीरीज 34 परीक्षा उत्तीर्ण करने की आवश्यकता है। संशोधित दादा कुछ ऐसे व्यक्तियों, जिन्हें एकमात्र स्वामित्व को मंजूरी दे दी गई थी या सीरिज 34 प्रवीणता की आवश्यकता से, 21 मई, 2008 को160 एफएएस या 160 एफबीएस160on के रूप में पंजीकृत किया गया था। 160 संहिताओं में यह सूचित किया गया है कि विदेशी मुद्रा कंपनी या विदेशी मुद्रा व्यक्ति के रूप में अनुमोदन के लिए आवेदन करने वाला कोई भी व्यक्ति विदेशी मुद्रा कंपनी या विदेशी मुद्रा व्यक्ति के रूप में स्वीकृति नहीं दी जाएगी, जब तक कि आवेदक ने सीरीज 3 या सीरिज 32 की प्रवीणता आवश्यकता (ऊपर वर्णित) और एनएफए को प्राप्त किया है संतोषजनक प्रमाण है कि आवेदक ने आवेदन की तारीख के दो साल के भीतर सीरिज 34 पास कर दिया है या आवेदक ने आखिरी बार सीरिज 34 की तारीख को पारित कर दिया है, वहां लगातार दो वर्षों का कोई भी समय नहीं रहा है, जिसके दौरान आवेदक के रूप में पंजीकृत नहीं किया गया है एक एपी या 160 एफबी या एक कुलसचिव या आवेदक के एक अनुमोदित प्राचार्य को एपी, एफबी या 22 मई, 2008 को एक स्वीकृत एकमात्र मालिक के रूप में पंजीकृत किया गया था, और उस तिथि के बाद से लगातार दो साल का कोई भी समय नहीं है, जिसके दौरान आवेदक या तो एक160 एपी या एफबी या एक कुलसचिव के अनुमोदित प्रिंसिपल के रूप में पंजीकृत किया गया है। रिटेल विदेशी मुद्रा लेनदेन (नियमन एनएन) एनहांस्ड कंटेंट - दस्तावेज़ उपकरण ये उपकरण आपको आधिकारिक दस्तावेज़ को बेहतर समझने और प्रिंट संस्करण में ऑनलाइन संस्करण की तुलना करने में सहायता करने के लिए डिजाइन किए गए हैं। ये मार्कअप तत्व उपयोगकर्ता को यह देखने की अनुमति देते हैं कि दस्तावेज़ दस्तावेज़ ड्राफ्टिंग हैंडबुक का पालन कैसे करता है कि एजेंसियां ​​अपने दस्तावेज़ बनाने के लिए उपयोग करती हैं। यह बेहतर ढंग से समझने के लिए उपयोगी हो सकता है कि दस्तावेज़ कैसे संरचित है लेकिन प्रकाशित दस्तावेज़ का हिस्सा नहीं है। एन्हांस्ड कंटेंट - डॉक्यूमेंट टूल्स एनहांस्ड कंटेंट - डेवलपर टूल्स फेडरल रिजर्व सिस्टम के गवर्नर्स के बोर्ड (एलडीकेओर्डर्डो) प्रारंभिक नियम मुद्रित मुद्रित पेज 21020 खुदरा के साथ विदेशी मुद्रा में ऑफ-एक्सचेंज लेनदेन में शामिल होने के लिए बैंकिंग संगठनों को अपनी निगरानी में अंतिम नियम अपना रहे हैं। ग्राहकों। अंतिम नियम विभिन्न आवश्यकताओं का भी वर्णन करता है जिसके साथ बैंकिंग संगठनों को ऐसे लेनदेन करने का अनुपालन करना चाहिए। यह नियम 13 मई, 2013 को प्रभावी है। आगे की जानकारी के लिए अधिक जानकारी प्रारंभ करें संपर्क: स्कॉट होल्ज़, वरिष्ठ वकील, कानूनी विभाग, (202) 452-2 9 66 अंत में अधिक जानकारी एंड प्रैम्बल प्रारंभ पूरक सूचना पूरक जानकारी: I. पृष्ठभूमि 21 जुलाई, 2010 को राष्ट्रपति ओबामा ने डोड-फ्रैंक वॉल स्ट्रीट रिफॉर्म और उपभोक्ता संरक्षण अधिनियम 2010 (डोड-फ्रैंक एक्ट) के कानून में हस्ताक्षर किए। 1 जैसा डोड-फ्रैंक एक्ट, 2 कमोडिटी एक्सचेंज एक्ट (सीईए) की धारा 742 (सी) (2) में संशोधन किया गया है, यह बताता है कि संयुक्त राज्य की वित्तीय संस्था थिंक 3 जिसके लिए एक संघीय नियामक संस्था है, 4 में प्रवेश नहीं किया जाएगा, या किसी भी प्रकार के विदेशी मुद्रा लेनदेन में दर्ज करने की पेशकश, सीईए की धारा 2 (सी) (2) (बी) (आई) (आई) में वर्णित कुछ विदेशी मुद्रा लेनदेन एक खुदरा ग्राहक के साथ 5 एक संघीय नियामक एजेंसी के नियम या विनियम के अनुसार संघीय नियामक एजेंसी के अनुसार इस तरह के नियमों और शर्तों के तहत लेनदेन की अनुमति देगा 6 (एक ldquoretail विदेशी मुद्रा शासक)। धारा 2 (सी) (2) (बी) (आई) (आई) विदेशी मुद्रा में लिंडू समझौता, अनुबंध या लेनदेन शामिल है जो कि भविष्य की डिलीवरी (या ऐसे अनुबंध पर कोई विकल्प) के लिए एक वस्तु की बिक्री का अनुबंध है या एक विकल्प (एक विकल्प को निष्पादित या एक राष्ट्रीय प्रतिभूति विनिमय पर कारोबार किया जाता है जो प्रतिभूति विनिमय अधिनियम 1 9 34 (15 यूएससी 78 एफ (ए)) की धारा 6 (ए) के तहत पंजीकृत है। rdquothinsp 7 एक फेडरल नियामक एजेंसी खुदरा विदेशी मुद्रा नियम चाहिए ऐसे सभी वायदा और विकल्प और सभी समझौतों, अनुबंध या लेनदेन, जो कार्यात्मक या आर्थिक रूप से ऐसे वायदा और विकल्प के समान ही हैं, का इलाज करते हैं। 8 खुदरा विदेशी मुद्रा नियमों को खुलासा, रिकॉर्ड कीपिंग, पूंजी और मार्जिन, रिपोर्टिंग, व्यापार आचरण के संबंध में उचित आवश्यकताएं लिखनी चाहिए। , और प्रलेखन आवश्यकताएं, और ऐसे अन्य मानकों या आवश्यकताओं को शामिल कर सकते हैं क्योंकि संघीय नियामक एजेंसी आवश्यक होने की पहचान करती है। 9 बोर्ड नियम ldquobanking संस्थानों पर लागू होता है, एन 240.2 (बी) का अर्थ है राज्य सदस्य बैंक, विदेशी बैंकों की अपूर्वदृष्ट राज्य-लाइसेंस वाली शाखाएं, वित्तीय होल्डिंग कंपनियों, बैंक होल्डिंग कंपनियों, बचत और ऋण धारक कंपनियों, 10 अनुबंध निगम, और एज अधिनियम निगम। 10 सितंबर, 2010 को कमोडिटी फ्यूचर्स ट्रेडिंग कमिशन (सीएफटीसी) ने अपने अधिकार क्षेत्र के अधीन व्यक्तियों के लिए खुदरा विदेशी मुद्रा नियम अपनाया। सीएफटीसी खुदरा फॉरेक्स नियम का अध्ययन और विचार करने के बाद, और मुद्रा (ओसीसी) और फेडरल डिपाजिट इंश्योरेंस कॉरपोरेशन (एफडीआईसी) के कार्यालय के साथ परामर्श, बोर्ड खुदरा के लिए प्रस्तावित नियम बनाने (एनपीआर) के एक नोटिस को प्रकाशित करने के लिए मंजूरी दे दी है जुलाई 28, 2011 को बैंकिंग संस्थानों द्वारा प्रभावी विदेशी मुद्रा लेनदेन। एनपीआर को 3 अगस्त, 2011 को संघीय रजिस्टर में प्रकाशित किया गया था, और टिप्पणी अवधि 11 अक्टूबर 2011 को बंद हुई। एनपीआर के जवाब में, बोर्ड ने छह टिप्पणियों को प्राप्त किया: व्यक्तियों में से तीन, एक बैंक से और व्यापार संगठनों में से दो व्यक्तिगत टिप्पणीकारों में से एक ने नियम को संबोधित नहीं किया, जबकि एक अन्य टिप्पणीकर्ता ने नियम के लिए सामान्य समर्थन व्यक्त किया। तीसरे व्यक्ति (अलग-अलग व्यक्ति टिप्पणी के बाद) और बैंक (बाद में बैंक लिखित प्रश्न टिप्पणी) आम तौर पर कुछ स्पष्टीकरण और परिवर्तनों का अनुरोध करते हुए नियम का समर्थन करते हैं। एक ट्रेड एसोसिएशन ने प्रस्तावित विनियमन के तहत कुछ संस्थाओं पर बोझ को कम करने के लिए परिवर्तनों का अनुरोध किया जो कि एलडीक्वाटेटेल विदेशी मुद्रा ग्राहक के रूप में योग्य होगा। अन्य ट्रेड एसोसिएशन पत्र ने खुदरा ग्राहकों को संबोधित करने के लिए परिवर्तनों का अनुरोध किया है जो विदेशी मुद्रा में निहित सुरक्षा की खरीद या बिक्री के संबंध में विदेशी मुद्रा का उपयोग करते हैं। इन टिप्पणियों को नीचे अनुभाग-दर-अनुभाग विश्लेषण में संबोधित किया गया है। बोर्ड अंतिम नियम अपना रहा है जो कि प्रस्तावित नियम के समान है, जो कुछ स्पष्टीकरण के साथ नीचे बताया गया है। द्वितीय। अनुभाग-दर-अनुभाग विश्लेषण अनुभाग 240.1 mdashAuthority, उद्देश्य, और क्षेत्रः यह खंड खुदरा विदेशी मुद्रा लेनदेन करने के लिए एक बैंकिंग संस्थान को अधिकृत करता है। विनियमन का दायरा बैंकिंग संस्थानों की शाखाओं और कार्यालयों को शामिल करता है, हालांकि इन संस्थानों के विदेशी शाखाएं और कार्यालय 240.3 और 240.5 से 240.16 तक के अधीन नहीं हैं, जब तक कि शाखा या कार्यालय संयुक्त राज्य के ग्राहक के साथ काम नहीं कर रहे हैं। चूंकि 240.1 और 240.2 वर्गों में प्राधिकरण, उद्देश्य और विनियमन की गुंजाइश और विनियमन में इस्तेमाल की गई परिभाषाएं शामिल हैं, अगर कोई बैंकिंग संस्थान केवल विदेशी शाखा या कार्यालय द्वारा विदेशी मुद्रा लेनदेन खुद को खरीदा जाता है और गैर-अमरीकी ग्राहकों तक ही सीमित होता है, तो केवल ऑपरेटिव लागू होने वाले विनियमन का अनुभाग अनुभाग 240.4 होगा। जैसा कि नीचे बताया गया है, इस खंड को एक बैंकिंग संस्थान की आवश्यकता है जो रिटेल फॉरेक्स कारोबार शुरू करने से पहले बोर्ड को सूचित करने के लिए खुदरा विदेशी मुद्रा लेनदेन में शामिल होना चाहता है। विनियमन में बैंकिंग संस्थानों की सहायक कंपनियों को भी शामिल किया गया है जो संयुक्त राज्य अमेरिका या अमेरिकी राज्य के कानूनों के तहत आयोजित किए गए हैं, जब तक कि सहायक कंपनी किसी अन्य संघीय नियामक एजेंसी के अधिकार क्षेत्र के अधीन होती है जो कि धारा 2 (सी) के तहत खुदरा विदेशी मुद्रा नियमों को निर्धारित करने के लिए अधिकृत है (2) (ई) कमोडिटी एक्सचेंज अधिनियम के विदेशी कानून के तहत आयोजित एक बैंकिंग संस्था की 13 सहायक कंपनियों को ग्राहक की राष्ट्रीयता की परवाह किए बिना कवर नहीं किया जाता है। यह नियम प्रभावी तिथि के बाद या बाद में बैंकिंग संस्थानों में लगे खुदरा विदेशी मुद्रा लेनदेन पर लागू होता है। धारा 240.2 mdash परिभाषाएँ यह खंड खुदरा विदेशी मुद्रा लेनदेन के लिए विशिष्ट नियम और खुदरा विदेशी मुद्रा लेनदेन पर लागू विनियामक आवश्यकताओं को परिभाषित करता है। Ldquoretail विदेशी मुद्रा लेनदेन की परिभाषा में आम तौर पर एक बैंकिंग संस्थान और एक व्यक्ति के बीच विदेशी मुद्रा में निम्नलिखित लेनदेन शामिल हैं, जो एक पात्र प्रारंभ मुद्रित पृष्ठ 21021 अनुबंध प्रतिभागी नहीं है: thinsp 14 (i) इस तरह के एक भविष्य के भविष्य के विकल्प 15 (ii) विकल्प एक पंजीकृत राष्ट्रीय प्रतिभूतियों एक्सचेंटीशिंस 16 और (iii) कुछ लीवरेज या सीमांत लेनदेन पर कारोबार नहीं करते हैं। इस परिभाषा में कई महत्वपूर्ण विशेषताएं हैं सबसे पहले, विदेशी मुद्रा में कुछ लेनदेन विदेशी मुद्रा लेनदेन की गारंटी नहीं देता है और इसलिए डोड-फ्रैंक अधिनियम के खंड 742 (सी) (2) में निषेध के अधीन नहीं हैं। उदाहरण के लिए, एक ldquospotrdquo विदेशी मुद्रा लेन-देन जहां एक मुद्रा दूसरे के लिए खरीदा जाता है और दो दिनों के भीतर दो मुद्राओं का आदान-प्रदान किया जाता है, वह लिंड्यूफ़ाइवरर्विवो नहीं है और लिडक्वायरे विदेशी मुद्रा लेनदेन की परिभाषा को पूरा नहीं करेगा, क्योंकि वास्तविक वितरण व्यावहारिक रूप से जल्द ही होता है। 17 इसी तरह, एक विदेशी मुद्रा लेनदेन में एक व्यावसायिक इकाई के साथ एक फॉरेन कॉन्ट्रैक्ट शामिल नहीं है जो डिलीवरी करने या बनाने के लिए एक लागू करने योग्य दायित्व बनाता है, बशर्ते वाणिज्यिक काउंटरपार्टी में डिलीवरी करने की क्षमता है और उसके कारोबार की रेखा के संबंध में डिलीवरी की स्वीकृति है। 18 इसके अलावा, विदेशी मुद्रा लेनदेन में लिंडेरेबल में 2000 की बैंक उत्पाद अधिनियम के कानूनी प्रमाण की धारा 401 (बी) में परिभाषित के रूप में एक ldquoidentified बैंकिंग उत्पादर्डो या ldquoidentified बैंकिंग उत्पाद का एक हिस्सा शामिल नहीं है। 1 9 अंत में, परिभाषा नहीं है एक प्रतिभूति विनिमय और बैंकिंग संस्थानों पर निष्पादित लेनदेन शामिल हैं, किसी निर्दिष्ट अनुबंध बाज़ार पर खुदरा विदेशी मुद्रा लेनदेन को लागू करने के लिए अयोग्य है। दूसरा, लेनदेन की परिभाषा विदेशी मुद्रा लेन-देन एक मोबाइल फोन के माध्यम से या इंटरनेट पर लेन-देन जैसे लेनदेन के बिना, लीवरेज या मार्जिन आधार (तथाकथित ज़ेल्नर थिन्सप 20 अनुबंध) पर प्रस्तुत या दर्ज किए गए रोलिंग स्पॉट विदेशी मुद्रा लेनदेन को शामिल करता है एक इलेक्ट्रॉनिक मंच एक रोलिंग स्पॉट फॉरेक्स लेनदेन सामान्यतया दो दिनों के भीतर मुद्रा की डिलीवरी की आवश्यकता होती है, जैसे स्पॉट लेनदेन। हालांकि, व्यवहार में, इन अनुबंधों को हर दूसरे दिन अनिश्चित रूप से नए सिरे से नवीनीकृत किया जाता है और कोई मुद्रा वास्तव में तब तक वितरित नहीं की जाती जब तक कि कोई पार्टी सकारात्मक स्थिति को बंद न करे। 21 इसलिए, ठेके स्पॉट कॉन्ट्रैक्ट्स की तुलना में आर्थिक रूप से अधिक वायदा हैं, हालांकि कुछ अदालतों ने उन्हें फार्म में स्पॉट कॉन्ट्रैक्ट होने का आयोजन किया है। 22 ट्रेड एसोसिएशन के एक टिप्पणी पत्र अमेरिकी बैंकर्स एसोसिएशन और ग्लोबल फाइनेंशियल मार्केट एसोसिएशन्स ग्लोबल फॉरेन एक्सचेंज डिवीजन (एबीएजीएफएमए पत्रों के बाद) के द्वारा प्रस्तुत किए गए थे। टिप्पणी पत्र स्पष्टीकरण या राहत मांगेगा जिसके परिणामस्वरूप खुदरा ग्राहकों द्वारा कुछ विदेशी मुद्रा लेनदेन की छूट पूरी तरह से विदेशी प्रतिभूतियों में लेन-देन पूरा करने के उद्देश्य से शुरू होगी। यह टिप्पणी पत्र संघीय नियामक एजेंसियों को संबोधित किया गया था जिन्होंने खुदरा विदेशी मुद्रा नियमों को प्रख्यापित किया है या प्रस्तावित किया है: बोर्ड, सीएफटीसी, एफडीआईसी, ओसीसी, और प्रतिभूति और विनिमय आयोग। 18 जुलाई 2012 को, सीएफटीसी ने एक अंतिम नियम जारी किया जिसमें विदेशी मुद्रा स्थान लेनदेन के बारे में एक व्याख्या शामिल थी जो एबीएजीएफ़एमए पत्र को जवाब देते थे। विशेष रूप से, सीएफटीसी ने विदेशी सुरक्षा की कीमत के बराबर विदेशी मुद्रा की एक खरीद की बिक्री या बिक्री को शामिल करने के लिए एक सशक्त स्थान की विदेशी मुद्रा लेनदेन को परिभाषित किया है, जहां (i) डिलीवरी को प्रभावी करने के लिए सुरक्षा और संबंधित विदेशी मुद्रा लेनदेन समकालीन रूप से निष्पादित किए जाते हैं प्रासंगिक प्रतिभूतियों से निपटने की समय सीमा, और (ii) विदेशी मुद्रा की वास्तविक वितरण इस तरह की समय सीमा से होता है सिक्योरिटीज खरीद और बिक्री से जुड़े इन प्रकार के खुदरा विदेशी मुद्रा लेनदेन को बाहर करने के लिए सीईए की व्याख्या करते हुए, सीएफटीसी ने पुष्टि की है कि लेनदेन सीईए के प्रावधानों के अधीन नहीं हैं जो डोड-फ्रैंक अधिनियम के खंड 742 द्वारा संदर्भित हैं। बोर्ड का मानना ​​है कि इस मुद्दे को हल करने के लिए अंतिम नियम में कोई संशोधन आवश्यक नहीं है। बोर्ड ने अंतिम नियम को एक अनुभाग भी जोड़ा है ताकि यह स्पष्ट हो सके कि बोर्ड विशिष्ट रीटेल विदेशी मुद्रा लेनदेन या खुदरा विदेशी मुद्रा लेनदेन की श्रेणी के लिए इस नियम के प्रावधानों को संशोधित कर सकता है यदि बोर्ड निर्धारित करता है कि संशोधन सुरक्षा और सुदृढ़ता के अनुरूप है और खुदरा विदेशी मुद्रा ग्राहकों की सुरक्षा धारा 240.2 सीईए के संदर्भ में कई शर्तों को परिभाषित करता है, जिसमें एलडीक्वॉएबल कॉन्ट्रक्ट पार्टनरडेक्वो (ईसीपी) शामिल है। पात्र अनुबंध प्रतिभागियों के साथ विदेशी मुद्रा लेनदेन खुदरा विदेशी मुद्रा लेनदेन नहीं माना जाता है और इसलिए इस नियम के अधीन नहीं हैं परिभाषा में विभिन्न वित्तीय संस्थाएं, सरकारी संस्थाएं, कुछ व्यवसाय, और व्यक्तियों को शामिल किया गया है जो कुछ निवेश सीमाएं पूरी करते हैं। 23 ग्लोबल फाइनेंशियल मार्केट एसोसिएशन्स ग्लोबल एफएक्स डिवीजन (इसके बाद लिफाक्लो जीएफएमए लेटरर्डो) द्वारा दायर टिप्पणी टिप्पणी पत्र और बैंक के टिप्पणीकार ने अपने विश्वास को स्पष्ट किया कि लिखित योग्य भागीदारी प्रतिभागी की परिभाषा बहुत संकीर्ण है और अनावश्यक रूप से बैंकिंग संस्थानों को परिष्कृत ग्राहकों को खुदरा सुरक्षा प्रदान करने की आवश्यकता है। ईसीपी के रूप में योग्य नहीं होने के कारण वे वैधानिक परिभाषा में 10 मिलियन परिसंपत्ति सीमा को पूरा नहीं करते हैं। ट्रेड एसोसिएशन टिप्पणीकर्ता और बैंक टिप्पणीकार ने अनुशंसा की है कि खंड 240.2 (एन) में विदेशी मुद्रा कस्टमरडक्वा की परिभाषा संस्थागत गैर-ईसीपी को पंजीकृत निवेश सलाहकारों द्वारा प्रतिनिधित्व करते हैं। ट्रेड एसोसिएशन के टिप्पणीकार ने कमोडिटी पूल के लिए बोझ को कम करने की भी मांग की है जो यह साबित करने में असमर्थ है कि इसके सभी प्रतिभागी स्वयं ही ईसीपी हैं जीएफएमए पत्र ने यह भी सुझाव दिया कि यदि बोर्ड इन संस्थाओं को विनियमन के सभी पहलुओं से छूट नहीं देता है, तो बोर्ड को कम से कम यह अनुमति देनी चाहिए कि वह लिंडेप्रोपार्शिकल गैर - ECPsrdquo को (1) मुनाफे वाले खातों सहित प्रकटीकरण आवश्यकताओं से ऑप्ट आउट करें अनुपात, खंड 240.6 (ई) में वर्णित है, (2) खुदरा ग्राहकों की तुलना में कम मार्जिन के बाद, और (3) प्रस्तावित नियमन के तहत स्वीकार्य लेनदेन निष्पादन लचीलापन की अनुमति नहीं है पृष्ठ 21022। बोर्ड यह सुझाव नहीं उठा रहा है कि किसी गैर-ईसीपी को एक निवेश सलाहकार के उपयोग के आधार पर ईसीपी के रूप में माना जाता है क्योंकि यह मानता है कि सीईए अनुभाग 2 (सी) (2) (ई) को खुदरा विदेशी मुद्रा नियमों के लेनदेन के लिए आवेदन की आवश्यकता है गैर - ECPs के साथ यद्यपि बड़े निवेश सलाहकार परिष्कृत निवेशकों से निपटने से बचने के लिए चुन सकते हैं, बोर्ड को यह विश्वास नहीं है कि बड़े निवेश सलाहकार की भागीदारी से कांग्रेस 2 द्वारा 2 (सी) (2) (ई) के अधिनियमन में मांग की गई खुदरा सुरक्षा के विकल्प है। सीईए विदेशी मुद्रा लेनदेन में संलग्न कमोडिटी पूल के ईसीपी स्थिति के बारे में मुद्दा सीडीटीसी में प्रस्तावित नियम बनाने के नोटिस में शामिल किया गया था, जिसमें कुछ डोड-फ्रैंक एक्ट की शर्तों की परिभाषा के बारे में बताया गया है, जिसमें एलडीक्वॉएबल कॉन्ट्रक्ट पार्टनर आरडीक्वॉथिंसप 24 शामिल हैं और उनके अंतिम नियम में 6 अप्रैल को अपनाया गया है। , 2012. 25 ईसीपी की सीएफटीसी की परिभाषा वस्तु पूल के बोझ को कम करती है जो यह स्थापित करने की मांग करती है कि उनके सभी सदस्य स्वयं ईसीपी हैं बोर्ड ईसीपी की संशोधित परिभाषा को शामिल करने के लिए विनियमन की धारा 240.2 में ईसीपी की परिभाषा में संशोधन कर रहा है। यह बैंकिंग संस्थानों को ईसीपी स्थिति के लिए एक ही मानक का उपयोग करने की अनुमति देता है क्योंकि खुदरा फॉरेक्स डीलरों सीएफटीसी अधिकार क्षेत्र के अधीन होते हैं जब कमोडिटी पूल के साथ काम करते हैं। सीईए और सीएफटीसी के अंतिम नियम के प्रावधानों के अनुरूप, बोर्ड टिप्पणीकारों के सुझाव को अपनाने नहीं कर रहा है कि कमोडिटी पूल को यह निर्धारित करने के लिए वैधानिक आवश्यकता से मुक्त किया गया है कि इसके सदस्य स्वयं ईसीपी हैं जीएफएमए पत्र ने स्पष्टीकरण भी मांगा कि एक खुदरा विदेशी मुद्रा ग्राहक के साथ एक बैंकिंग संस्थान जो बाद में ईसीपी बन गया, ग्राहक को खुदरा विदेशी मुद्रा ग्राहक (यानी गैर-ईसीपी के रूप में) के रूप में इलाज करना जारी रख सकता है। बोर्ड का मानना ​​है कि एक बैंकिंग संस्थान इस तरह के एक ग्राहक के लिए नियमन का पालन करना जारी रख सकता है। दरअसल, एक बैंकिंग संस्थान विनियमन एनएन के प्रावधानों को किसी भी ग्राहक से लेनदेन के लिए लागू कर सकता है, हालांकि खुदरा विदेशी मुद्रा ग्राहकों के साथ खुदरा विदेशी मुद्रा लेनदेन के विनियमन को लागू करने की आवश्यकता है। बोर्ड को एलडीक्वॉएबल कॉन्ट्रक्ट पार्टनर के अलावा अन्य प्रस्तावित परिभाषाओं पर कोई टिप्पणी नहीं मिली। ईसीपी की परिभाषा को संशोधित करने के अलावा, बोर्ड लिंडोरोजीजिंग और लोन होल्डिंग कंपनी की परिभाषा जोड़ रहा है। अन्य सभी मामलों में, इस खंड को काफी हद तक अपनाया जा रहा है प्रस्तावित। धारा 240.3 mdash लेन-देन किए गए लेन-देन इस खंड में बैंकिंग संस्थान और उसके संबंधित व्यक्तियों को खुदरा विदेशी मुद्रा लेनदेन के संबंध में धोखाधड़ी के व्यवहार में शामिल होने से रोकती है। यह खंड एक बैंकिंग संस्थान को प्रतिपक्ष के रूप में खुदरा विदेशी मुद्रा लेनदेन करने पर रोक लगाने के जरिए ब्याज के संभावित संघर्षों को भी संबोधित करता है यदि बैंकिंग संस्थान या उसके सहयोगी ग्राहक खुदरा विदेशी मुद्रा खाता पर विवेक का उपयोग करते हैं बोर्ड प्रस्ताव सीटीटीसी, ओसीसी और एफडीआईसी द्वारा इस्तेमाल किए जाने वाले शब्दों से थोड़े अलग शब्दों का प्रयोग करते थे। जबकि अन्य संघीय नियामक प्राधिकरणों के खुदरा विदेशी मुद्रा नियम यह बताते हैं कि खुदरा विदेशी मुद्रा प्रतिपक्षी किसी भी व्यक्ति को धोखा देने या धोखा देने या धोखा देने या धोखा देने का प्रयास नहीं कर सकता है, बोर्ड प्रस्ताव ने वाक्यांश लिडक्ोडेफ्राउड या धोखाधड़ी का प्रयास किया। व्यक्तिगत टिप्पणीकर्ता ldquocheat या डीडक्वाइडफ्राउड के बजाय डिफ्रड्र्डक्वो, जो उनका मानना ​​है कि नियामकों में विनियामक स्थिरता को बढ़ावा देगा। बोर्ड नोट करता है कि वाक्यांश ldquocheat या defraudrdquo का उपयोग सीईए के अनुभाग 6b (धोखाधड़ी या गलत तरीके से करने के लिए डिज़ाइन किए गए लिंडू कॉन्ट्रैक्ट्स) thinsp 26 और सीईए और अन्य नियामकों के रूप में उसी भाषा का उपयोग करने के प्रस्ताव को संशोधित कर रहा है। इसके अलावा, बोर्ड प्रस्ताव एक बैंकिंग संस्थान को ldquoknowinglyrdquo से एक झूठी रिपोर्ट बनाने या एक व्यक्ति को धोखा देने से रोकता है, जबकि अन्य नियामकों ने इन गतिविधियों में शामिल होने वाले खुदरा फॉरेक्स डीलरों को प्रतिबंधित कर दिया है। बोर्ड ने अपने विश्वास को बताया कि ldquoknowinglyrdquo प्रमाण के एक अधिक उपयुक्त मानक निर्धारित करता है। व्यक्तिगत टिप्पणीकार ने नियामक निरंतरता में सुधार के लिए अन्य नियामकों द्वारा उपयोग की जाने वाली भाषा को प्राथमिकता दी। न्याय विभाग (DOJ) अमेरिकी अटॉर्नी मैनुअल 18 यूएससी के संबंध में ldquoknowinglyrdquo और ldquowillfullyrdquo के बीच अंतर पर चर्चा करता है। 1001. संघीय आपराधिक कोड आम विरोधी धोखाधड़ी प्रावधान 27 यह चर्चा आपराधिक कोड के दूसरे प्रावधान से संबंधित सर्वोच्च न्यायालय के मामले के अनुरूप है। 28 दोनों DOJ और न्यायालय से संकेत मिलता है कि एक ldquowillfulrdquo उल्लंघन की आवश्यकता है कि प्रतिवादी ने ज्ञान के साथ काम किया कि उसके व्यवहार को गैरकानूनी माना गया, जबकि एक ldquoknowingrdquo उल्लंघन के लिए अपराधों का गठन करने वाले तथ्यों का ज्ञान आवश्यक है, जैसा कि कानून के ज्ञान से अलग है। बोर्ड का मानना ​​है कि ldquoknowinglyrdquo अधिक उपयुक्त मानक निर्धारित करता है, क्योंकि यह सबूत की आवश्यकता के बिना एक झूठी रिपोर्ट या भ्रामक व्यवहार करने के लिए कवर किया जाएगा, जिसमें बैंकिंग संस्थान जानता था कि वह विनियमन NN का उल्लंघन कर रहा था। धारा 240.4mdash नोटिफिकेशन इस खंड के लिए एक बैंकिंग संस्थान को एक खुदरा विदेशी मुद्रा व्यापार में संलग्न होने से पहले बोर्ड को सूचित करने की आवश्यकता है। इस नोटिस में ग्राहक के कारण परिश्रम (क्रेडिट मूल्यांकन, ग्राहक उपयुक्तता और आपके कस्टमर डिक्टो दस्तावेज सहित) पर जानकारी शामिल है, नॉनकैश मार्जिन और ब्याज के टकराव के लिए नए उत्पाद अनुमोदन बाल कटाने। इसके अलावा, बैंकिंग संस्था को यह प्रमाणित करना होगा कि इसमें पर्याप्त लिखित नीतियां, प्रक्रियाएं, और जोखिम माप और प्रबंधन प्रणालियां और खुदरा विदेशी मुद्रा व्यापार में एक सुरक्षित और सही तरीके से और बोर्डों की खुदरा विदेशी मुद्रा नियम । एक बार बैंकिंग संस्था ने इस प्रावधान के अनुसार बोर्ड को अधिसूचित कर लिया है, बोर्ड को अधिसूचना में अधिसूचना के लिए अतिरिक्त जानकारी या वस्तु की तलाश करने के लिए साठ दिनों का समय होगा, या अधिसूचना को प्रभावी माना जाएगा। यदि बोर्ड अतिरिक्त जानकारी मांगता है, तो नोटिस बोर्ड द्वारा प्राप्त की गई सभी सूचनाओं के अनुरोध के बाद साठ दिनों तक प्रभावी हो जाएगी, जब तक कि बोर्ड लिखित रूप में ऑब्जेक्ट न हो। यद्यपि वायदा और विकल्प अनुबंधों के संबंध में वैधानिक आवश्यकताएँ वर्तमान में लागू हैं, कुछ बैंकिंग संस्थान वर्तमान में खुदरा विदेशी मुद्रा लेनदेन में संलग्न हो सकते हैं जो कि इस नियम द्वारा कवर किए जाएंगे, जैसे कि तथाकथित ldquoZelener अनुबंध। Rdquo खुदरा विदेशी मुद्रा में लगे बैंकिंग संस्थान इस नियम की प्रभावी तिथि के रूप में लेनदेन, जो तुरंत बोर्ड को सूचित करेगा, बोर्ड के पास छह महीने या बोर्ड द्वारा प्रदान की जाने वाली अवधि होगी, ताकि उनके संचालन को नियम के अनुसार अनुरूप बनाया जा सके। इस नियम के तहत, एक बैंकिंग संस्थान जो बोर्ड को सूचित करता है कि बोर्ड द्वारा एक विस्तार के अधीन, अंतिम खुदरा विदेशी मुद्रा नियम की प्रभावी तारीख के 30 दिनों के भीतर बोर्ड को सूचित करता है और बोर्ड द्वारा अनुरोधित जानकारी को प्रस्तुत करता है, जिसके बाद उसके खुदरा कारोबार का संचालन माना जाएगा ऐसी अवधि के लिए कमोडिटी एक्सचेंज अधिनियम के तहत जरूरी, एक संघीय नियामक एजेंसी के नियम या विनियम के अनुसार विदेशी मुद्रा व्यापार, 29 एक बैंकिंग संस्थान को खुदरा विदेशी मुद्रा कारोबार चलाने की शर्त के रूप में वायदा स्व-नियामक संगठन में शामिल होने की आवश्यकता नहीं है। मुद्रित पृष्ठ प्रारंभ करें पृष्ठ 21023 बोर्ड को इस खंड पर कोई टिप्पणी नहीं मिली और इसे प्रस्तावित के रूप में अपनाया गया। धारा 240.5 एमडीएश एपलिफिकेशन और ऑफसेटिंग लांग और शॉर्ट पोजिशन के समापन इस खंड के लिए एक बैंकिंग संस्थान को खुदरा विदेशी मुद्रा खाते में एक ही मुद्रा में लंबी और छोटी पोजिशन को ऑफसेट करने की आवश्यकता है। फिर भी, एक बैंकिंग संस्थान खुदरा विदेशी मुद्रा ग्राहक द्वारा रिटेल फॉरेक्स लेनदेन को ऑफसेट कर सकता है या ग्राहकों के एजेंट (बैंकिंग संस्था के अलावा अन्य) ग्राहकों को विशिष्ट निर्देशों के अनुसार ले सकता है। कंबल के निर्देश इस उद्देश्य के लिए पर्याप्त नहीं हैं, क्योंकि वे सामान्य नियम का उल्लंघन कर सकते हैं। हालांकि, ऑफसेट निर्देशों को प्रत्येक जोड़ी के आदेशों के लिए अलग से नहीं दिया जा सकता है ताकि निर्देशों के पर्याप्त रूप से परिभाषित सेटों पर लागू हो सकें। ऑफ़सेट निर्देश लिखित में या मौखिक रूप से प्रदान किए जा सकते हैं। बैंकिंग संस्थान को प्रत्येक ऑफसेट अनुदेश का रिकॉर्ड बनाना और बनाए रखना चाहिए। बोर्ड को इस खंड पर कोई टिप्पणी नहीं मिली और इसे प्रस्तावित के रूप में अपनाया गया। धारा 240.6 mdash डिस्क्लोजर इस खंड के लिए एक बैंकिंग संस्थान की आवश्यकता है जो खुदरा फॉरेक्स ग्राहकों को सीएफ़टीसी रीटेल फॉरेक्स नियम के लिए आवश्यक है, लेकिन बैंकिंग संस्थानों में रीटेल फॉरेक्स के कुछ विशिष्ट विशेषताओं को संबोधित करने के लिए एक जोखिम प्रकटीकरण वक्तव्य के साथ प्रदान करना है। निर्धारित जोखिम प्रकटीकरण विवरण खुदरा विदेशी मुद्रा लेनदेन से संबंधित जोखिमों का वर्णन करता है। प्रकटीकरण कथन स्पष्ट करता है कि खुदरा विदेशी मुद्रा लेनदेन से होने वाले नुकसान के लिए मार्जिन लेने या कवर करने के लिए सेट-ऑफ का उपयोग करने वाला बैंकिंग संस्थान स्पष्ट रूप से जोखिम के प्रकटीकरण बयान में शामिल होना चाहिए और अलग-अलग लिखित स्वीकृति प्राप्त करना चाहिए (चर्चा देखें अनुभाग 240.9 में नीचे सेट-ऑफ)। सीएफटीसी, ओसीसी और एफडीआईसी के अंतिम नियम खुदरा ग्राहकों को खुदरा ग्राहकों के लिए खुलासा करने के लिए रिटेल फॉरेक्स खातों का प्रतिशत बताते हैं, जो कि लाभ अर्जित करते हैं, और ऐसे खातों का प्रतिशत जो हाल के चार कैलेंडरों में से प्रत्येक के दौरान हानि का अनुभव करता है तिमाहियों। 30 व्यक्तिगत टिप्पणीकार ने सुझाव दिया है कि इस लिपक्वॉफ्टिबल अकाउंट्स रथर्डक्लो को हेरफेर किया जा सकता है, हालांकि उन्होंने यह नहीं बताया कि यह कैसे किया जा सकता है, और अनुपात के लिए एक उद्देश्य और वर्दी गणना पद्धति को अपनाने की सिफारिश की गई है। The commenter also recommended that the calculation should be weighted by the amount of profit or loss to show the amount of profitability or loss, rather than just whether any account made any profit. The Board believes a calculation of the amount of profitability would be more likely to cause retail customers to believe that past performance is an indication of future results and is retaining the profitable accounts ratio and statement of profitable trades as proposed. In addition, the Board believes a uniform calculation of profitable accounts and statement of profitable trades for all retail forex dealers affords greater retail consumer protection by allowing comparison across different types of dealers. Finally, the Board notes that section 240.7(b) provides a calculation methodology for the profitable accounts ratio that is uniform across the bank regulatory agencies. 31 As proposed, the risk disclosure must be provided as a separate document. The Board requested comment on whether banking institutions should be allowed to combine the retail forex risk disclosure with other disclosures that banking institutions make to their customers. The individual commenter supported the Boards proposal, which is consistent with the final rules adopted by the other bank regulatory agencies. The individual commenter sought clarification as to whether the requirement in section 240.6(f) that the banking institution disclose ldquoany fee, charge, or commissionrdquo imposed on the customer for retail forex transactions includes spreads. The final rules adopted by the OCC and FDIC both require disclosure of ldquoany fee, charge, spread, or commissionrdquo and the individual commenter recommended that the Board add the word ldquospreadrdquo to its rules. The Board believes that spreads are covered by the proposed language, but is adding the word ldquospreadsrdquo to this section to make such coverage explicit. The individual commenter also asked for confirmation that the disclosure of ldquoany fee, charge, or commissionrdquo includes interest income on the retail forex account or retail forex transaction. The rate of interest income paid on cash margin is not a fee, charge, spread, or commission, and so is not required to be disclosed under section 240.6. Section 240.7mdashRecordkeeping This section specifies which documents and records a banking institution engaged in retail forex transactions must retain for examination by the Board. Banking institutions are required to maintain retail forex account records, financial ledgers, transactions records, daily records, order tickets, and records showing allocations and noncash margin, as well as records relating to possible violations of law. This section also prescribes document maintenance standards, including the manner and length of maintenance. Finally, this section requires banking institutions to record and maintain transaction records and make them available to customers. The individual commenter suggested that records required under this section be retained by the retail forex dealer forever, rather than the minimum five year period specified in section 240.7(h). The Board does not believe it is appropriate to require records be maintained indefinitely and notes that the five year period is consistent with retention requirements for many supervision and regulation records required by the Board. This section is being adopted as proposed. Section 240.8mdashCapital Requirements The Boards retail forex rule does not change the Boards regulations regarding capital. This section generally requires that a banking institution that offers or enters into retail forex transactions must be ldquowell capitalizedrdquo as defined in the Boards Regulations H, Y and LLthinsp 32 or the banking institution must obtain an exemption from the Board. An uninsured state-licensed U. S. branch or agency of a foreign bank must apply the capital rules that are made applicable to it pursuant to section 225.2(r)(3) of the Boards Regulation Y. 33 An Edge corporation or agreement corporation must comply with the capital adequacy guidelines that are made applicable to an Edge corporation engaged in banking pursuant to section 211.12(c)(2) of the Boards Regulation K. 34 In addition, a banking institution must continue to hold capital against retail forex transactions as provided in the Boards regulations. The Board received no comments to this section and adopts it as proposed. Section 240.9mdashMargin Requirements Paragraph (a) requires a banking institution that engages in retail forex transactions, in advance of any such transaction, to collect from the retail forex customer margin equal to at least two percent of the notional value of the Start Printed Page 21024 retail forex transaction if the transaction is in a major currency pair, and at least five percent of the notional value of the retail forex transaction otherwise. These margin requirements are identical to the requirements imposed by the retail forex rules of the CFTC, OCC, and FDIC. A major currency pair is a currency pair with two major currencies. The major currencies specified in the regulation are the U. S. Dollar (USD), Canadian Dollar (CAD), Euro (EUR), United Kingdom Pound (GBP), Japanese Yen (JPY), Swiss franc (CHF), New Zealand Dollar (NZD), Australian Dollar (AUD), Swedish Kronor (SEK), Danish Kroner (DKK), and Norwegian Krone (NOK), 35 as well as any other currency as determined by the Board. Prior to implementation of the CFTCs rule, non-bank dealers routinely permitted customers to trade with 1 percent margin (leverage of 100:1) and sometimes with as little as 0.25 percent margin (leverage of 400:1). When the CFTC proposed its retail forex rule in January 2010, it proposed a margin requirement of 10 percent (leverage of 10:1). In response to comments, the CFTC reduced the required margin in the final rule to 2 percent (leverage of 50:1) for trades involving major currencies and 5 percent (leverage of 20:1) for trades involving non-major currencies. These margin requirements were also adopted by the OCC and FDIC. The Board received no comments regarding the appropriate level of margin and is adopting the same requirements as the CFTC and other bank regulatory agencies. Paragraph (b) specifies the acceptable forms of margin that customers may post, including margin pledged in excess of the requirements of paragraph (a). Banking institutions must establish policies and procedures providing for haircuts for noncash margin collected from customers and must review these haircuts annually. It may be prudent for banking institutions to review and modify the size of the haircuts more frequently. Paragraph (c) requires a banking institution to collect additional margin from the customer or to liquidate the customers position if the amount of margin held by the banking institution fails to meet the requirements of paragraph (a). The proposed rule requires the banking institution to mark the customers open retail forex positions and the value of the customers margin to the market daily to ensure that a retail forex customer does not accumulate substantial losses not covered by margin. The retail forex regulations adopted by the OCC and FDIC both prohibit set-off, i. e. . the bank forex dealer is prohibited from applying a retail forex customers losses against any asset or liability of the retail forex customer other than money or property given as margin. Banks generally have broad rights to set off mutual debts to cover customer obligations. It is not clear that limiting a banks right of set-off in these particular transactions would provide appropriate incentives for retail forex customers. The Boards proposed rule did not include this prohibition and no comments were received opposing this proposal. The Board is adopting these provisions as proposed. In order to effectuate the prohibition against a bank retail forex dealer exercising a right of set-off, the OCC and FDIC require that each customers retail forex transaction margin be held in a separate account that holds only that customers retail forex transaction margin. As proposed, the Board is not requiring the use of a separate margin account, as it is not prohibiting a banking institution from exercising a right of set-off. Section 240.10mdashRequired reporting to customers This section requires a banking institution engaging in retail forex transactions to provide each retail forex customer confirmations and monthly statements, and describes the information to be included. The Board received no comments to this section and adopts it as proposed. Section 240.11mdashUnlawful Representations This section prohibits a banking institution and its related persons from representing that the Federal government, the Board, or any other Federal agency has sponsored, recommended, or approved retail forex transactions or products in any way. This section also prohibits a banking institution from implying or representing that it will guarantee against or limit retail forex customer losses or not collect margin as required by section 240.9. This section does not prohibit a banking institution from sharing in a loss resulting from error or mishandling of an order, and guaranties entered into prior to the effectiveness of the prohibition would only be affected if an attempt is made to extend, modify, or renew them. This section also does not prohibit a banking institution from hedging or otherwise mitigating its own exposure to retail forex transactions or any other foreign exchange risk. The Board received no comments to this section and adopts it as proposed. Section 240.12mdashAuthorization to Trade This section requires a banking institution to have specific authorization from a retail forex customer before effecting a retail forex transaction for that customer. The Board received no comments to this section and adopts it as proposed. Section 240.13mdashTrading and Operational Standards This section largely follows the trading standards of the retail forex rules adopted by the CFTC, OCC and FDIC, which were developed to prevent some of the deceptive or unfair practices identified by the CFTC and the National Futures Association. Under paragraph (a), a banking institution engaging in retail forex transactions is required to establish and enforce internal rules, procedures and controls to prevent front running, in which transactions in accounts of the banking institution or its related persons are executed before a similar customer order, and to establish settlement prices fairly and objectively. Paragraph (b) prohibits a banking institution engaging in retail forex transactions from disclosing that it holds another persons order unless disclosure is necessary for execution or is made at the Boards request. Paragraph (c) ensures that related persons of another retail forex counterparty do not open accounts with a banking institution without the knowledge and authorization of the account surveillance personnel of the other retail forex counterparty to which they are affiliated. Similarly, paragraph (d) ensures that related persons of a banking institution do not open accounts with other retail forex counterparties without the knowledge and authorization of the account surveillance personnel of the banking institution to which they are affiliated. Paragraph (e) prohibits a banking institution engaging in retail forex transactions from (1) Entering a retail forex transaction to be executed at a price that is not at or near prices at which other retail forex customers have executed materially similar transactions with the banking institution during the same time period, (2) changing prices after confirmation, (3) providing a retail forex customer with a new bid price that is higher (or lower) than previously provided without providing a new ask Start Printed Page 21025 price that is similarly higher (or lower) as well, and (4) establishing a new position for a retail forex customer (except to offset an existing position) if the banking institution holds one or more outstanding orders of other retail forex customers for the same currency pair at a comparable price. Paragraphs (e)(3) and (e)(4) do not prevent a banking institution from changing the bid or ask prices of a retail forex transaction to respond to market events. The Board understands that market practice among CFTC-registrants is not to offer requotes, but to simply reject orders and advise customers they may submit a new order (which the dealer may or may not accept). Similarly, a banking institution may reject an order and advise customers they may submit a new order. Paragraph (e)(5) requires a banking institution to use consistent market prices for customers executing retail forex transactions during the same time. It also prevents a banking institution from offering preferred execution to some of its retail forex customers but not others. The Board received no comments to this section and adopts it as proposed. Section 240.14mdashSupervision This section imposes on a banking institution and its agents, officers, and employees a duty to supervise subordinates with responsibility for retail forex transactions to ensure compliance with the Boards retail forex rule. The Board received no comments to this section and adopts it as proposed. Section 240.15mdashNotice of Transfers This section describes the requirements for transferring a retail forex account. Generally, a banking institution must provide retail forex customers 30 days prior notice before transferring or assigning their account. Affected customers may then instruct the banking institution to transfer the account to an institution of their choosing or liquidate the account. There are three exceptions to the above notice requirement: a transfer in connection with the receivership or conservatorship under the Federal Deposit Insurance Act a transfer pursuant to a retail forex customers specific request and a transfer otherwise allowed by applicable law. A banking institution that is the transferee of retail forex accounts must generally provide the transferred customers with the risk disclosure statement of section 240.6 and obtain each affected customers written acknowledgement within 60 days. The Board received no comments to this section and adopts it as proposed. Section 240.16mdashCustomer Dispute Resolution This section prohibits a banking institution from entering into any agreement or understanding with a retail forex customer in which the customer agrees, prior to the time a claim or grievance arises, to submit the claim or grievance to any settlement procedure. This provision differs from the applicable CFTC and OCC dispute settlement procedures, which permit mandatory pre-dispute settlement agreements under certain conditions. 36 The Board proposed to prohibit a banking institution from entering into a pre-dispute settlement agreement with a retail forex customer, similar to the final rule adopted by the FDIC. The Department of State has advised that transactions between the foreign branch or office of a banking institution and a U. S. customer could be cross-border transactions subject to the New Yorkthinsp 37 and Panama Conventions. 38 These Conventions, implemented in the United States by chapters 2 and 3 of the Federal Arbitration Act (FAA), 39 create treaty obligations to enforce international commercial arbitration agreements and to recognize and enforce international commercial arbitral awards. The Board is amending section 240.16 to provide that it will not apply to transactions covered by chapters 2 or 3 of the FAA. Section 240.17mdashReservation of Authority. This section allows the Board to modify certain requirements of this rule consistent with safety and soundness and the protection of retail forex customers. The Board understands the need for flexibility as foreign exchange trading procedures develop and to ensure that such products or trading procedures are subject to appropriate customer protection and safety and soundness standards. Interagency Statement on Retail Sales of Nondeposit Investment Products For banking institutions, the requirements in the Boards retail forex regulation overlap with applicable expectations contained in the Interagency Statement on Retail Sales of Nondeposit Investment Products (NDIP Policy Statement). 40 The NDIP Policy Statement sets out guidance regarding the Boards expectations when a banking institution engages in the sale of nondeposit investment products to retail customers. The NDIP Policy Statement addresses issues such as disclosure, suitability, sales practices, compensation, and compliance. The Board views retail forex transactions as nondeposit investment products, but the terms ldquoretail forex customerrdquo in this rule and ldquoretail customerrdquo in the NDIP Policy Statement are not necessarily co-extensive. The Board requested comment on whether the proposed regulation created issues concerning application of the NDIP policy statement to retail forex transactions that the Board should address. The Board received no comments on this issue. As the Board noted in its proposal, after the effective date of the final rule, the Board will expect banking institutions engaging in or offering retail forex transactions to also comply with the NDIP Policy Statement to the extent such compliance does not conflict with the requirements of the Boards final retail forex rule. तृतीय। Regulatory Analysis A. Regulatory Flexibility Act In accordance with Section 4(a) of the Regulatory Flexibility Act, 5 U. S.C. 601 et seq, (RFA), the Board must publish a final regulatory flexibility analysis with this rulemaking. The RFA requires an agency either to provide a final regulatory flexibility analysis with a final rule for which a general notice of proposed rulemaking is required or to certify that the final rule will not have a significant economic impact on a substantial number of small entities. Based on this analysis and for the reasons stated below, the Board believes that the final rule would not have a significant economic impact on a substantial number of small entities. Nevertheless, the Board is publishing a final regulatory flexibility analysis. 1. A succinct statement of the need for, and objectives of, the rule. Section 2(c)(2)(E) of the Commodity Exchange Act (7 U. S.C. 2 (c)(2)(E)) Start Printed Page 21026 prohibits a U. S. financial institution from conducting certain retail foreign exchange transactions unless done pursuant a rule or regulation of a Federal regulatory agency allowing such transactions. The Board is adopting a new regulation to allow banking institutions under its supervision to engage in retail foreign exchange transactions. 2. A Summary of the Significant Issues Raised by the Public Comments in Response to the Initial Regulatory Flexibility Analysis, a Summary of the Assessment of the Agency of Such Issues, and a Statement of Any Changes Made in the Proposed Rule as a Result of Such Comments The Board requested comment on required reporting, disclosure, and recordkeeping requirements for all banking institutions engaging in retail foreign exchange transactions and has solicited comment on any approaches that would reduce the burden on all counterparties, including small entities. In response to the notice of proposed rulemaking, the Board received no comments with respect to RFA. 3. A Description of and an Estimate of the Number of Small Entities To Which the Rule Will Apply or an Explanation of Why No Such Estimate Is Available Under regulations issued by the Small Business Administration, a banking institution is considered a ldquosmall entityrdquo if it has assets of 175 million or less. 41 As of June 30, 2012, there were approximately 368 small state member banks, 6 small Edge Act and agreement corporations, 48 small uninsured branches of foreign banks, 3,736 small bank holding companies, 213 small financial holding companies, and 229 small saving and loan holding companies. The Board is not aware of any small institutions engaged in retail forex transactions. 4. A Description of the Projected Reporting, Recordkeeping, and Other Compliance Requirements of the Rule, Including an Estimate of the Classes of Small Entities Which Will Be Subject to the Requirement and the Type of Professional Skills Necessary for Preparation of the Report or Record A description of the projected recordkeeping and other compliance requirements can be found below in section B, ldquoPaperwork Reduction Act, rdquo under the following headings: Reporting Requirements, Disclosure Requirements, and Recordkeeping Requirements. The Board believes that there are no other compliance requirements for this rule. 5. A Description of the Steps the Agency Has Taken To Minimize the Significant Economic Impact on Small Entities Consistent With the Stated Objectives of Applicable Statutes, Including a Statement of the Factual, Policy, and Legal Reasons for Selecting the Alternative Adopted in the Final Rule and Why Each One of the Other Significant Alternatives to the Rule Considered by the Agency Which Affect the Impact on Small Entities Was Rejected The Board believes that no Federal rules duplicate, overlap, or conflict with the rule. The Board has solicited comments on the proposed rule and received relatively few comments. The Board did not receive any comments from small entities and is unaware of any small entities that will be affected by the rule. The Boards rule is consistent with other banking regulators that also solicited comment on their rules. As noted in the supplementary information above, retail forex transactions are also subject to the Interagency Statement on Retail Sales of Nondeposit Investment Products, but this rule would govern to the extent of a conflict. B. Paperwork Reduction Act In accordance with section 3512 of the Paperwork Reduction Act (PRA) of 1995 (44 U. S.C. 3501 -3521), the Board may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The Board reviewed the final rule under the authority delegated to the Board by OMB. The OMB control number for these information collections will be assigned. The Board received no comments regarding the Paperwork Reduction Act implications of its retail forex regulation. Title of Information Collection: Reporting, recordkeeping, and disclosure requirements associated with Regulation NN. Frequency of Response: On occasion. Affected Public: Businesses or other for-profit. Respondents: Agreement corporations, Edge Act corporations, state member banks, uninsured branches of foreign banks, financial holding companies, and bank holding companies (collectively, ldquobanking institutionsrdquo). Abstract: The information collection requirements of the final rule are found in sectsectthinsp240.4-240.7, 240.9-240.10, 240.13, 240.15-240.16. Reporting Requirements The reporting requirements in sectthinsp240.4 require that, prior to initiating a retail forex business, a banking institution provide the Board with prior notice. The notice must certify that the banking institution has written policies and procedures, and risk measurement and management systems in controls in place to ensure that retail forex transactions are conducted in a safe and sound manner. The banking institution must also provide other information required by the Board, such as documentation of customer due diligence, new product approvals, and haircuts applied to noncash margins. A banking institution already engaging in a retail forex business may continue to do so, provided it requests an extension of time. Disclosure Requirements Section 240.5, regarding the application and closing out of offsetting long and short positions, requires a banking institution to promptly provide the customer with a statement reflecting the financial result of the transactions and the name of the introducing broker to the account. The customer may provide specific written instructions on how the offsetting transaction should be applied. Section 240.6 requires that a banking institution furnish a retail forex customer with a written disclosure before opening an account that will engage in retail forex transactions for a retail forex customer and receive an acknowledgment from the customer that it was received and understood. It also requires the disclosure by a banking institution of its fees and other charges and its profitable accounts ratio. Section 240.10 requires a banking institution to issue monthly statements to each retail forex customer and to send confirmation statements following transactions. Section 240.13(b) allows disclosure by a banking institution that an order of another person is being held by them only when necessary to the effective execution of the order or when the disclosure is requested by the Board. Section 240.13(c) prohibits a banking institution engaging in retail forex transactions from knowingly handling the account of any related person of another retail forex counterparty unless it receives proper written authorization, promptly prepares a written record of the order, and transmits to the counterparty copies all statements and written records. Section 240.13(d) Start Printed Page 21027 prohibits a related person of a banking institution engaging in forex transactions from having an account with another retail forex counterparty unless it receives proper written authorization and copies of all statements and written records for such accounts are transmitted to the counterparty. Section 240.15 requires a banking institution to provide a retail forex customer with 30 days prior notice of any assignment of any position or transfer of any account of the retail forex customer. It also requires a banking institution to which retail forex accounts or positions are assigned or transferred to provide the affected customers with risk disclosure statements and forms of acknowledgment and receive the signed acknowledgments within 60 days. The customer dispute resolution provisions in sectthinsp240.16 requires certain endorsements, acknowledgments, and signature language. It also requires that within 10 days after receipt of notice from the retail forex customer that they intend to submit a claim to arbitration, the banking institution will provide them with a list of persons qualified in the dispute resolution and that the customer must notify the banking institution of the person selected within 45 days of receipt of such list. Recordkeeping Requirements Sections 240.7 and 240.13(a) require that a banking institution engaging in retail forex transactions keep full, complete, and systematic records and establish and implement internal rules, procedures, and controls. Section 240.7 also requires that a banking institution keep account, financial ledger, transaction and daily records, as well as memorandum orders, post-execution allocation of bunched orders, records regarding its ratio of profitable accounts, possible violations of law, records for noncash margin, and monthly statements and confirmations. Section 240.9 requires policies and procedures for haircuts for noncash margin collected under the rules margin requirements, and annual evaluations and modifications of the haircuts. Estimated PRA Burden Number of Respondents: 5 banking institutions 2 service providers. Estimated Average Hours per Response: 16 hours reporting burden 787 hours disclosure burden and 183 hours recordkeeping burden Total Estimated Annual Burden: 6,870 hours (80 hours reporting burden 5,509 hours disclosure burden and 1,281 hours recordkeeping burden). The Board has a continuing interest in the publics opinions of collections of information. At any time, comments regarding the burden estimate, or any other aspect of this collection of information, including suggestions for reducing the burden, may be sent to: Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets NW. Washington, DC 20551 and to the Office of Management and Budget, Paperwork Reduction Project, Washington, DC 20503. C. Plain Language Section 722 of the Gramm-Leach-Bliley Act requires the Board to use plain language in all proposed and final rules published after January 1, 2000. No commenters suggested that the proposed rule was materially unclear, and the Board believes that the Final Rule is substantively similar to the proposed rule. Start List of Subjects List of Subjects in 12 CFR Part 240 For the reasons stated in the preamble, the Board amends 12 CFR Chapter II by adding new part 240 to read as follows: PART 240mdashRETAIL FOREIGN EXCHANGE TRANSACTIONS (REGULATION NN) 240.1 Authority, purpose, and scope. 240.2 Definitions. 240.3 Prohibited transactions. 240.4 Notification. 240.5 Application and closing out of offsetting long and short positions. 240.6 Disclosure. 240.7 Recordkeeping. 240.8 Capital requirements. 240.9 Margin requirements. 240.10 Required reporting to customers. 240.11 Unlawful representations. 240.12 Authorization to trade. 240.13 Trading and operational standards. 240.14 Supervision. 240.15 Notice of transfers. 240.16 Customer dispute resolution. 240.17 Reservation of authority. Authority, purpose and scope. (a) Authority. This part is issued by the Board of Governors of the Federal Reserve System (the Board) under the authority of section 2(c)(2)(E) of the Commodity Exchange Act (7 U. S.C. 2 (c)(2)(E)), sections 9 and 11 of the Federal Reserve Act (12 U. S.C. 321 -338 and 248), section 5(b) of the Bank Holding Company Act of 1956 (12 U. S.C. 1844 (b)), sections 9 and 13a of the International Banking Act of 1978 (12 U. S.C. 3106 a and 3108), and sections 3(q) and 8 of the Federal Deposit Insurance Act (12 U. S.C. 1813 (q) and 1818). (b) Purpose. This part establishes rules applicable to retail foreign exchange transactions engaged in by banking institutions on or after May 13, 2013. (c) Scope. Except as provided in paragraph (d) of this section, this part applies to banking institutions, as defined in section 240.2(b) of this part, and any branches or offices of those institutions wherever located. This part applies to subsidiaries of banking institutions organized under the laws of the United States or any U. S. state that are not subject to the jurisdiction of another federal regulatory agency authorized to prescribe rules or regulations under section 2(c)(2)(E) of the Commodity Exchange Act (7 U. S.C. (2)(c)(2)(E)). (d) International applicability. Sections 240.3 and 240.5 through 240.16 do not apply to retail foreign exchange transactions between a foreign branch or office of a banking institution and a non-U. S. customer. With respect to those transactions, the foreign branch or office remains subject to any disclosure, recordkeeping, capital, margin, reporting, business conduct, documentation, and other requirements of applicable foreign law. For purposes of this part, the following terms have the same meaning as in the Commodity Exchange Act (7 U. S.C. 1 et seq.): ldquoaffiliated person of a futures commission merchantrdquo ldquoassociated personrdquo ldquocontract of salerdquo ldquocommodityrdquo ldquofutures commission merchantrdquo ldquofuture deliveryrdquo ldquooptionrdquo ldquosecurityrdquo and ldquosecurity futures product. rdquo (a) Affiliate has the same meaning as in section 2(k) of the Bank Holding Company Act of 1956 (12 U. S.C. 1841 (k)). (b) Banking institution means: (1) A state member bank (as defined in 12 CFR 208.2 ) (2) An uninsured state-licensed U. S. branch or agency of a foreign bank (3) A financial holding company (as defined in section 2 of the Bank Holding Company Act of 1956 12 U. S.C. 1841 ) (4) A bank holding company (as defined in section 2 of the Bank Holding Company Act of 1956 12 U. S.C. 1841 ) Start Printed Page 21028 (5) A savings and loan holding company (as defined in section 10 of the Home Owners Loan Act 12 U. S.C. 1467 a) (6) A corporation operating under the fifth undesignated paragraph of section 25 of the Federal Reserve Act (12 U. S.C. 603 ), commonly known as ldquoan agreement corporationrdquo and (7) A corporation organized under section 25A of the Federal Reserve Act (12 U. S.C. 611 et seq.), commonly known as an ldquoEdge Act corporation. rdquo (c) Commodity Exchange Act means the Commodity Exchange Act (7 U. S.C. 1 et seq. ). (d) Eligible contract participant has the same meaning as in the Commodity Exchange Act (7 U. S.C. 1 et seq., as implemented in 17 CFR 1.3 (m). (e) Forex means foreign exchange. (f) Identified banking product has the same meaning as in section 401(b) of the Legal Certainty for Bank Products Act of 2000 (7 U. S.C. 27 (b)). (g) Institution-affiliated party or IAP has the same meaning as in 12 U. S.C. 1813 (u)(1), (2), or (3). (h) Introducing broker means any person who solicits or accepts orders from a retail forex customer in connection with retail forex transactions. (i) Related person, when used in reference to a retail forex counterparty, means: (1) Any general partner, officer, director, or owner of ten percent or more of the capital stock of the retail forex counterparty (2) An associated person or employee of the retail forex counterparty, if the retail forex counterparty is not an insured depository institution (3) An IAP, if the retail forex counterparty is an insured depository in stitution and (4) Any relative or spouse of any of the foregoing persons, or any relative of such spouse, who shares the same home as any of the foregoing persons. (j) Retail foreign exchange dealer means any person other than a retail forex customer that is, or that offers to be, the counterparty to a retail forex transaction, except for a person described in item (aa), (bb), (cc)(AA), (dd), or (ff) of section 2(c)(2)(B)(i)(II) of the Commodity Exchange Act (7 U. S.C. 2 (c)(2)(B)(i)(II)). (k) Retail forex account means the account of a retail forex customer, established with a banking institution, in which retail forex transactions with the banking institution as counterparty are undertaken, or the account of a retail forex customer that is established in order to enter into such transactions. (l) Retail forex account agreement means the contractual agreement between a banking institution and a retail forex customer that contains the terms governing the customers retail forex account with the banking institution. (m) Retail forex business means engaging in one or more retail forex transactions with the intent to derive income from those transactions, either directly or indirectly. (n) Retail forex counterparty includes, as appropriate: (1) A banking institution (2) A retail foreign exchange dealer (3) A futures commission merchant (4) An affiliated person of a futures commission merchant and (5) A broker or dealer registered under section 15(b) (except paragraph (11) thereof) or 15C of the Securities Exchange Act of 1934 (15 U. S.C. 78 o(b), 78o-5) or a U. S. financial institution other than a banking institution, provided the counterparty is subject to a rule or regulation of a Federal regulatory agency covering retail forex transactions. (o) Retail forex customer means a customer that is not an eligible contract participant, acting on his, her, or its own behalf and engaging in retail forex transactions. (p) Retail forex proprietary account means a retail forex account carried on the books of a banking institution for one of the following persons a retail forex account of which 10 percent or more is owned by one of the following persons or a retail forex account of which an aggregate of 10 percent or more of which is owned by more than one of the following persons: (1) The banking institution (2) An officer, director or owner of ten percent or more of the capital stock of the banking institution or (3) An employee of the banking institution, whose duties include: (i) The management of the banking institutions business (ii) The handling of the banking institutions retail forex transactions (iii) The keeping of records, including without limitation the software used to make or maintain those records, pertaining to the banking institutions retail forex transactions or (iv) The signing or co-signing of checks or drafts on behalf of the banking institution (4) A spouse or minor dependent li ving in the same household as of any of the foregoing persons or (5) An affiliate of the banking institution (q) Retail forex transaction means an agreement, contract, or transaction in foreign currency, other than an identified banking product or a part of an identified banking product, that is offered or entered into by a banking institution with a person that is not an eligible contract participant and that is: (1) A contract of sale of a commodity for future delivery or an option on such a contract or (2) An option, other than an option executed or traded on a national securities exchange registered pursuant to section 6(a) of the Securities Exchange Act of 1934 (15 U. S.C. 78 f(a)) or (3) Offered or entered into on a leveraged or margined basis, or financed by a banking institution, its affiliate, or any person acting in concert with the banking institution or its affiliate on a similar basis, other than: (i) A security that is not a security futures product as defined in section 1a(47) of the Commodity Exchange Act (7 U. S.C. 1 a(47)) or (ii) A contract of sale thatmdash (A) Results in actual delivery within two days or (B) Creates an enforceable obligation to deliver between a seller and buyer that have the ability to deliver and accept delivery, respectively, in connection with their line of business or (iii) An agreement, contract, or transaction that the Board determines is not functionally or economically similar to an agreement, contract, or transaction described in paragraph (p)(1) or (p)(2) of this section. (a) Fraudulent conduct prohibited. No banking institution or its related persons may, directly or indirectly, in or in connection with any retail forex transaction: (1) Cheat or defraud or attempt to cheat or defraud any person (2) Knowingly make or cause to be made to any person any false report or statement or cause to be entered for any person any false record or (3) Knowingly deceive or attempt to deceive any person by any means whatsoever. (b) Acting as counterparty and exercising discretion prohibited. A banking institution that has authority to cause retail forex transactions to be effected for a retail forex customer without the retail forex customers specific authorization may not (and an affiliate of such an institution may not) act as the counterparty for any retail forex transaction with that retail forex customer. (a) Notification required. Before commencing a retail forex business, a Start Printed Page 21029 banking institution shall provide the Board with prior written notice in compliance with this section. The notice will become effective 60 days after a complete notice is received by the Board, provided the Board does not request additional information or object in writing. In the event the Board requests additional information, the notice will become effective 60 days after all information requested by the Board is received by the Board unless the Board objects in writing. (b) Notification requirements. A banking institution shall provide the following in its written notification: (1) Information concerning customer due diligence, including without limitation credit evaluations, customer appropriateness, and ldquoknow your customerrdquo documentation (2) The haircuts to be applied to noncash margin as provided in 240.9(b)(2) (3) Information concerning new product approvals (4) Information on addressing conflicts of interest and (5) A resolution by the banking institutions Board of Directors that the banking institution has established and implemented written policies, procedures, and risk measurement and management systems and controls for the purpose of ensuring that it conducts retail forex transactions in a safe and sound manner and in compliance with this part. (c) Treatment of existing retail forex businesses. A banking institution that is engaged in a retail forex business on the effective date of this part may continue to do so, until and unless the Board objects in writing, so long as the institution submits the information required to be submitted under paragraphs (b)(1) through (5) of this section within 30 days of the effective date of this part, subject to an extension of time by the Board, and such additional information as requested by the Board thereafter. (d) Compliance with the Commodity Exchange Act. A banking institution that is engaged in a retail forex business on the effective date of this part and complies with paragraph (c) of this section shall be deemed to be acting pursuant to a rule or regulation described in section 2(c)(2)(E)(ii)(I) of the Commodity Exchange Act (7 U. S.C. 2 (c)(2)(E)(ii)(I)). Application and closing out of offsetting long and short positions. (a) Application of purchases and sales. Any banking institution thatmdash (1) Engages in a retail forex transaction involving the purchase of any currency for the account of any retail forex customer when the account of such retail forex customer at the time of such purchase has an open retail forex transaction for the sale of the same currency (2) Engages in a retail forex transaction involving the sale of any currency for the account of any retail forex customer when the account of such retail forex customer at the time of such sale has an open retail forex transaction for the purchase of the same currency (3) Purchases a put or call option involving foreign currency for the account of any retail forex customer when the account of such retail forex customer at the time of such purchase has a short put or call option position with the same underlying currency, strike price, and expiration date as that purchased or (4) Sells a put or call option involving foreign currency for the account of any retail forex customer when the account of such retail forex customer at the time of such sale has a long put or call option position with the same underlying currency, strike price, and expiration date as that sold shall: (i) Immediately apply such purchase or sale against such previously held opposite transaction with the same customer and (ii) Promptly furnish such retail forex customer with a statement showing the financial result of the transactions involved and the name of any introducing broker to the account. (b) Close-out against oldest open position. In all instances in which the short or long position in a customers retail forex account immediately prior to an offsetting purchase or sale is greater than the quantity purchased or sold, the banking institution shall apply such offsetting purchase or sale to the oldest portion of the previously held short or long position. (c) Transactions to be applied as directed by customer. Notwithstanding paragraphs (a) and (b) of this section, the offsetting transaction shall be applied as directed by a retail forex customers specific instructions. These instructions may not be made by the banking institution or a related person. (a) Risk disclosure statement required. No banking institution may open or maintain an account for a retail forex customer for the purpose of engaging in retail forex transactions unless the banking institution has furnished the retail forex customer with a separate written disclosure statement containing only the language set forth in paragraph (d) of this section and the disclosures required by paragraphs (e), (f), and (g) of this section. (b) Acknowledgement of risk disclosure statement required. The banking institution must receive from the retail forex customer a written acknowledgement signed and dated by the customer that the customer received and understood the written disclosure statement required by paragraph (a) of this section. (c) Placement of risk disclosure statement. The disclosure statement may be attached to other documents as the initial page(s) of such documents and as the only material on such page(s). (d) Content of risk disclosure statement. The language set forth in the written disclosure statement required by paragraph (a) of this section shall be as follows: Risk Disclosure Statement Retail forex transactions generally involve the leveraged trading of contracts denominated in foreign currency with a banking institution as your counterparty. Because of the leverage and the other risks disclosed here, you can rapidly lose all of the funds or property you give the banking institution as margin for such trading and you may lose more than you pledge as margin. You should be aware of and carefully consider the following points before determining whether such trading is appropriate for you. (1) Trading foreign currencies is a not on a regulated market or exchangemdashyour banking institution is your trading counterparty and has conflicting interests. The retail forex transaction you are entering into is not conducted on an interbank market, nor is it conducted on a futures exchange subject to regulation by the Commodity Futures Trading Commission. The foreign currency trades you transact are trades with your banking institution as the counterparty. When you sell, the banking institution is the buyer. When you buy, the banking institution is the seller. As a result, when you lose money trading, your banking institution is making money on such trades, in addition to any fees, commissions, or spreads the banking institution may charge. (2) Any electronic trading platform that you may use for retail foreign currency transactions with your banking institution is not a regulated exchange. It is an electronic connection for accessing your banking institution. The terms of availability of such a platform are governed only by your contract with your banking institution. Any trading platform that you may use to enter into off-exchange foreign currency transactions is only connected to your banking institution. You are accessing that trading platform only to transact with your banking institution. You are not trading with any other entities or customers of the banking institution by accessing such platform. The availability and operation of any such platform, including the consequences of the unavailability of the Start Printed Page 21030 trading platform for any reason, is governed only by the terms of your account agreement with the banking institution. (3) You may be able to offset or liquidate any trading positions only through your banking institution because the transactions are not made on an exchange, and your banking institution may set its own prices. Your ability to close your transactions or offset positions is limited to what your banking institution will offer to you, as there is no other market for these transactions. Your banking institution may offer any prices it wishes. Your banking institution may establish its prices by offering spreads from third party prices, but it is under no obligation to do so or to continue to do so. Your banking institution may offer different prices to different customers at any point in time on its own terms. The terms of your account agreement alone govern the obligations your banking institution has to you to offer prices and offer offset or liquidating transactions in your account and make any payments to you. The prices offered by your banking institution may or may not reflect prices available elsewhere at any exchange, interbank, or other market for foreign currency. (4) Paid solicitors may have undisclosed conflicts. The banking institution may compensate introducing brokers for introducing your account in ways that are not disclosed to you. Such paid solicitors are not required to have, and may not have, any special expertise in trading, and may have conflicts of interest based on the method by which they are compensated. You should thoroughly investigate the manner in which all such solicitors are compensated and be very cautious in granting any person or entity authority to trade on your behalf. You should always consider obtaining dated written confirmation of any information you are relying on from your banking institution in making any trading or account decisions. (5) Retail forex transactions are not insured by the Federal Deposit Insurance Corporation. (6) Retail forex transactions are not a deposit in, or guaranteed by, a banking institution. (7) Retail forex transactions are subject to investment risks, including possible loss of all amounts invested. Finally, you should thoroughly investigate any statements by any banking institution that minimize the importance of, or contradict, any of the terms of this risk disclosure. Such statements may indicate sales fraud. This brief statement cannot, of course, disclose all the risks and other aspects of trading off-exchange foreign currency with a banking institution. I hereby acknowledge that I have received and understood this risk disclosure statement. Signature of Customer (e)(1) Disclosure of profitable accounts ratio. Immediately following the language set forth in paragraph (d) of this section, the statement required by paragraph (a) of this section shall include, for each of the most recent four calendar quarters during which the banking institution maintained retail forex customer accounts: (i) The total number of retail forex customer accounts maintained by the banking institution over which the banking institution does not exercise investment discretion (ii) The percentage of such accounts that were profitable for retail forex customer accounts during the quarter and (iii) The percentage of such accounts that were not profitable for retail forex customer accounts during the quarter. (2) Statement of profitable trades. (i) The banking institutions statement of profitable trades shall include the following legend: Past performance is not necessarily indicative of future results. (ii) Each banking institution shall provide, upon request, to any retail forex customer or prospective retail forex customer the total number of retail forex accounts maintained by the banking institution for which the banking institution does not exercise investment discretion, the percentage of such accounts that were profitable, and the percentage of such accounts that were not profitable for each calendar quarter during the most recent five-year period during which the banking institution maintained such accounts. (f) Disclosure of fees and other charges. Immediately following the language required by paragraph (e) of this section, the statement required by paragraph (a) of this section shall include: (1) The amount of any fee, charge, spread, or commission that the banking institution may impose on the retail forex customer in connection with a retail forex account or retail forex transaction (2) An explanation of how the banking institution will determine the amount of such fees, charges, spreads, or commissions and (3) The circumstances under which the banking institution may impose such fees, charges, spreads, or commissions. (g) Set-off. Immediately following the language required by paragraph (f) of this section, the statement required by paragraph (a) of this section shall include: (1) A statement as to whether the banking institution will or will not retain the right to set off obligations of the retail forex customer arising from the customers retail forex transactions, including margin calls and losses, against the customers other assets held by the banking institution (2) If the banking institution states that it reserves its right to set off obligations of the retail forex customer arising from the customers retail forex transactions against the customers other assets, the banking institution must receive from the retail forex customer a written acknowledgement signed and dated by the customer that the customer received and understood the written disclosure required by paragraph (g)(1) of this section. (h) Future disclosure requirements. If, with regard to a retail forex customer, the banking institution changes any fee, charge, or commission required to be disclosed under paragraph (f) of this section, then the banking institution shall mail or deliver to the retail forex customer a notice of the changes at least 15 days prior to the effective date of the change. (i) Form of disclosure requirements. The disclosures required by this section shall be clear and conspicuous and designed to call attention to the nature and significance of the information provided. (j) Other disclosure requirements unaffected. This section does not relieve a banking institution from any other disclosure obligation it may have under applicable law. (a) General rule. A banking institution engaging in retail forex transactions shall keep full, complete and systematic records, together with all pertinent data and memoranda, of all transactions relating to its retail forex business, including: (1) Retail forex account records. For each retail forex account: (i) The name and address of the person for whom such retail forex account is carried or introduced and the principal occupation or business of the person (ii) The name of any other person guaranteeing the account or exercising trading control with respect to the account (iii) The establishment or termination of the account (iv) A means to identify the person who has solicited and is responsible for the account or assign account numbers in such a manner as to identify that person (v) The funds in the account, net of any commissions and fees (vi) The accounts net profits and losses on open trades (vii) The funds in the account plus or minus the net profits and losses on open trades, adjusted for the net option value in the case of open options positions Start Printed Page 21031 (viii) Financial ledger records that show separately for each retail forex customer all charges against and credits to such retail forex customers account, including but not limited to retail forex customer funds deposited, withdrawn, or transferred, and charges or credits resulting from losses or gains on closed transactions and (ix) A list of all retail forex transactions executed for the account, with the details specified in paragraph (a)(2) of this section. (2) Retail forex transaction records. For each retail forex transaction: (i) The date and time the banking institution received the order (ii) The price at which the banking institution placed the order, or, in the case of an option, the premium that the retail forex customer paid (iii) The customer account identification information (iv) The currency pair (v) The size or quantity of the order (vi) Whether the order was a buy or sell order (vii) The type of order, if the order was not a market order (viii) The size and price at which the order is executed, or in the case of an option, the amount of the premium paid for each option purchased, or the amount credited for each option sold (ix) For options, whether the option is a put or call, expiration date, quantity, underlying contract for future delivery or underlying physical, strike price, and details of the purchase price of the option, including premium, mark-up, commission, and fees (x) For futures, the delivery date and (xi) If the order was made on a trading platfor m: (A) The price quoted on the trading platform when the order was placed, or, in the case of an option, the premium quoted (B) The date and time the order was transmitted to the trading platform and (C) The date and time the order was executed. (3) Price changes on a trading platform. If a trading platform is used, daily logs showing each price change on the platform, the time of the change to the nearest second, and the trading volume at that time and price. (4) Methods or algorithms. Any method or algorithm used to determine the bid or asked price for any retail forex transaction or the prices at which customers orders are executed, including, but not limited to, any mark-ups, fees, commissions or other items which affect the profitability or risk of loss of a retail forex customers transaction. (5) Daily records which show for each business day complete details of: (i) All retail forex transactions that are futures transactions executed on that day, including the date, price, quantity, market, currency pair, delivery date, and the person for whom such transaction was made (ii) All retail forex transactions that are option transactions executed on that day, including the date, whether the transaction involved a put or call, the expiration date, quantity, currency pair, delivery date, strike price, details of the purchase price of the option, including premium, mark-up, commission and fees, and the person for whom the transaction was made and (iii) All other retail forex transactions executed on that day for such account, including the date, price, quantity, currency and the person for whom such transaction was made. (6) Other records. Written acknowledgements of receipt of the risk disclosure statement required by sectthinsp240.6(b), offset instructions pursuant to sectthinsp240.5(c), records required under paragraphs (b) through (f) of this section, trading cards, signature cards, street books, journals, ledgers, payment records, copies of statements of purchase, and all other records, data and memoranda that have been prepared in the course of the banking institutions retail forex business. (b) Ratio of profitable accounts. (1) With respect to its active retail forex customer accounts over which it did not exercise investment discretion and that are not retail forex proprietary accounts open for any period of time during the quarter, a banking institution shall prepare and maintain on a quarterly basis (calendar quarter): (i) A calculation of the percentage of such accounts that were profitable (ii) A calculation of the percentage of such accounts that were not profitable and (iii) Data supporting the calculations described in paragraphs (b)(1)(i) and (b)(1)(ii) of this section. (2) In calculating whether a retail forex account was profitable or not profitable during the quarter, the banking institution shall compute the realized and unrealized gains or losses on all retail forex transactions carried in the retail forex account at any time during the quarter, and subtract all fees, commissions, and any other charges posted to the retail forex account during the quarter, and add any interest income and other income or rebates credited to the retail forex account during the quarter. All deposits and withdrawals of funds made by the retail forex customer during the quarter must be excluded from the computation of whether the retail forex account was profitable or not profitable during the quarter. Computations that result in a zero or negative number shall be considered a retail forex account that was not profitable. Computations that result in a positive number shall be considered a retail forex account that was profitable. (3) A retail forex account shall be considered ldquoactiverdquo for purposes of paragraph (b)(1) of this section if and only if, for the relevant calendar quarter, a retail forex transaction was executed in that account or the retail forex account contained an open position resulting from a retail forex transaction. (c) Records related to possible violations of law. A banking institution engaging in retail forex transactions shall make a record of all communications received by the banking institution or its related persons concerning facts giving rise to possible violations of law related to the banking institutions retail forex business. The record shall contain: the name of the complainant, if provided the date of the communication the relevant agreement, contract, or transaction the substance of the communication and the name of the person who received the communication and the final disposition of the matter. (d) Records for noncash margin. A banking institution shall maintain a record of all noncash margin collected pursuant to sectthinsp240.9. The record shall show separately for each retail forex customer: (1) A description of the securities or property received (2) The name and address of such retail forex customer (3) The dates when the securities or property were received (4) The identity of the depositories or other places where such securities or property are segregated or held, if applicable (5) The dates on which the banking institution placed or removed such securities or property into or from such depositories and (6) The dates of return of such securities or property to such retail forex customer, or other disposition thereof, together with the facts and circumstances of such other disposition. (e) Order tickets. (1) Except as provided in paragraph (e)(2) of this section, immediately upon the receipt of a retail forex transaction order, a banking institution shall prepare an order ticket for the order (whether unfulfilled, executed or canceled). The order ticket shall include: (i) Account identification (account or customer name with which the retail forex transaction was effected) Start Printed Page 21032 (ii) Order number (iii) Type of order (market order, limit order, or subject to special instructions) (iv) Date and time, to the nearest minute, the retail forex transaction order was received (as evidenced by timestamp or other timing device) (v) Time, to the nearest minute, the retail forex transaction order was executed and (vi) Price at which the retail forex transaction was executed. (2) Post-execution allocation of bunched orders. Specific identifiers for retail forex accounts included in bunched orders need not be recorded at time of order placement or upon report of execution as required under paragraph (e)(1) of this section if the following requirements are met: (i) The banking institution placing and directing the allocation of an order eligible for post-execution allocation has been granted written investment discretion with regard to participating customer accounts and makes the following information available to customers upon request: (A) The general nature of the post-execution allocation methodology the banking institution will use (B) Whether the banking institution has any interest in accounts which may be included with customer accounts in bunched orders eligible for post-execution allocation and (C) Summary or composite data sufficient for that customer to compare the customers results with those of other comparable customers and, if applicable, any account in which the banking institution has an interest. (ii) Post-execution allocations are made as soon as practicable after the entire transaction is executed (iii) Post-execution allocations are fair and equitable, with no account or group of accounts receiving consistently favorable or unfavorable treatment and (iv) The post-execution allocation methodology is sufficiently objective and specific to permit the Board to verify fairness of the allocations using that methodology. (f) Record of monthly statements and confirmations. A banking institution shall retain a copy of each monthly statement and confirmation required by sectthinsp240.10. (g) Form of record and manner of maintenance. The records required by this section must clearly and accurately reflect the information required and provide an adequate basis for the audit of the information. A banking institution must create and maintain audio recordings of oral orders and oral offset instructions. Record maintenance may include the use of automated or electronic records provided that the records are easily retrievable, and readily available for inspection. (h) Length of maintenance. A banking institution shall keep each record required by this section for at least five years from the date the record is created. (a) Capital required for a state member bank. A banking institution defined in section 240.2(b)(1) offering or entering into retail forex transactions must be well-capitalized as defined in section 208.43 of Regulation H (12 CFR 208.43 ). (b) Capital required for an uninsured state-licensed branch of a foreign bank. A banking institution defined in sectthinsp240.2(b)(2) offering or entering into retail forex transactions must be well-capitalized under the capital rules made applicable to it pursuant to sectthinsp225.2(r)(3) of Regulation Y (12 CFR 225.2 (r)(3)). (c) Capital required for financial holding companies and bank holding companies. A banking institution defined in sectthinsp240.2(b)(3) or (4) offering or entering into retail forex transactions must be well-capitalized as defined in sectthinsp225.2(r) of Regulation Y (12 CFR 225.2 (r)). (d) Capital required for savings and loan holding companies. A banking institution defined in sectthinsp240.2(b)(5) offering or entering into retail forex transactions must be well-capitalized as defined in sectthinsp238.2(s) of Regulation LL (12 CFR 238.2 (s)). (e) Capital required for an agreement corporation or Edge Act corporation. A banking institution defined in sectthinsp240.2(b)(6) or (7) offering or entering into retail forex transactions must maintain capital in compliance with the capital adequacy guidelines that are made applicable to an Edge corporation engaged in banking pursuant to sectthinsp211.12 (c)(2) of Regulation K (12 CFR 211.12 (c)(2)). (a) Margin required. A banking institution engaging, or offering to engage, in retail forex transactions must collect from each retail forex customer an amount of margin not less than: (1) Two percent of the notional value of the retail forex transaction for major currency pairs and 5 percent of the notional value of the retail forex transaction for all other currency pairs (2) For short options, 2 percent for major currency pairs and 5 percent for all other currency pairs of the notional value of the retail forex transaction, plus the premium received by the retail forex customer or (3) For long options, the full premium charged and received by the banking institution. (b)(1) Form of margin. Margin collected under paragraph (a) of this section or pledged by a retail forex customer for retail forex transactions in excess of the requirements of paragraph (a) of this section must be in the form of cash or the following financial instruments: (i) Obligations of the United States and obligations fully guaranteed as to principal and interest by the United States (ii) General obligations of any State or of any political subdivision thereof (iii) General obligations issued or guaranteed by any enterprise, as defined in 12 U. S.C. 4502 (10) (iv) Certificates of deposit issued by an insured depository institution, as defined in section 3(c)(2) of the Federal Deposit Insurance Act (12 U. S.C. 1813 (c)(2)) (v) Commercial paper (vi) Corporate notes or bonds (vii) General obligations of a sovereign nation (viii) Interests in money market mutual funds and (ix) Such other financial instruments as the Board deems appropriate. (2) Haircuts. A banking institution shall establish written policies and procedures that include: (i) Haircuts for noncash margin collected under this section and (ii) Annual evaluation, and, if appropriate, modification of the haircuts. (c) Major currencies. (1) for the purposes of paragraphs (a)(1) and (a)(2) of this section, major currency means: (i) United States Dollar (USD) (ii) Canadian Dollar (CAD) (iv) United Kingdom Pound (GBP) (v) Japanese Yen (JPY) (vi) Swiss Franc (CHF) (vii) New Zealand Dollar (NZD) (viii) Australian Dollar (AUD) (ix) Swedish Kronor (SEK) (x) Danish Kroner (DKK) (xi) Norwegian Krone (NOK), and (xii) Any other currency as determined by the Board. (d) Margin calls liquidation of position. For each retail forex customer, at least once per day, a banking institution shall: (1) Mark the value of the retail forex customers open retail forex positions to market (2) Mark the value of the margin collected under this section from the retail forex customer to market (3) Determine whether, based on the marks in paragraphs (d)(1) and (d)(2) of Start Printed Page 21033 this section, the banking institution has collected margin from the retail forex customer sufficient to satisfy the requirements of this section and (4) If, pursuant to paragraph (d)(3) of this section, the banking institution determines that it has not collected margin from the retail forex customer sufficient to satisfy the requirements of this section then, within a reasonable period of time, the banking institution shall either: (i) Collect margin from the retail forex customer sufficient to satisfy the requirements of this section or (ii) Liquidate the retail forex customers retail forex transactions. Required reporting to customers. (a) Monthly statements. Each banking institution must promptly furnish to each retail forex customer, as of the close of the last business day of each month or as of any regular monthly date selected, except for accounts in which there are neither open positions at the end of the statement period nor any changes to the account balance since the prior statement period, but in any event not less frequently than once every three months, a statement that clearly shows: (1) For each retail forex customer: (i) The open retail forex transactions with prices at which acquired (ii) The net unrealized profits or losses in all open retail forex transactions marked to the market (iii) Any money, securities or other property held as margin for retail forex transactions and (iv) A detailed accounting of all financial charges and credits to the retail forex customers retail forex accounts during the monthly reporting period, including: money, securities, or property received from or disbursed to such customer realized profi ts and losses and fees, charges, and commissions. (2) For each retail forex customer engaging in retail forex transactions that are options: (i) All such options purchased, sold, exercised, or expired during the monthly reporting period, identified by underlying retail forex transaction or underlying currency, strike price, transaction date, and expiration date (ii) The open option positions carried for such customer and arising as of the end of the monthly reporting period, identified by underlying retail forex transaction or underlying currency, strike price, transaction date, and expiration date (iii) All such option positions marked to the market and the amount each position is in the money, if any (iv) Any money, securities or other property held as margin for retail forex transactions and (v) A detailed accounting of all financial charges and credits to the retail forex customers retail forex accounts during the monthly reporting period, including: money, securities, or property received from or disbursed to such customer realiz ed profits and losses premiums and mark-ups and fees, charges, and commissions. (b) Confirmation statement. Each banking institution must, not later than the next business day after any retail forex transaction, send: (1) To each retail forex customer, a written confirmation of each retail forex transaction caused to be executed by it for the customer, including offsetting transactions executed during the same business day and the rollover of an open retail forex transaction to the next business day (2) To each retail forex customer engaging in forex option transactions, a written confirmation of each forex option transaction, containing at least the following information: (i) The retail forex customers account identification number (ii) A separate listing of the actual amount of the premium, as well as each mark-up thereon, if applicable, and all other commissions, costs, fees and other charges incurred in connection with the forex option transaction (iii) The strike price (iv) The underlying retail forex transaction or underlying currency (v) The final exercise date of the forex option pur chased or sold and (vi) The date the forex option transaction was executed. (3) To each retail forex customer engaging in forex option transactions, upon the expiration or exercise of any option, a written confirmation statement thereof, which statement shall include the date of such occurrence, a description of the option involved, and, in the case of exercise, the details of the retail forex or physical currency position which resulted therefrom including, if applicable, the final trading date of the retail forex transaction underlying the option. (c) Notwithstanding the provisions of paragraphs (b)(1) through (3) of this section, a retail forex transaction that is caused to be executed for a pooled investment vehicle that engages in retail forex transactions need be confirmed only to the operator of such pooled investment vehicle. (d) Controlled accounts. With respect to any account controlled by any person other than the retail forex customer for whom such account is carried, each banking institution shall promptly furnish in writing to such other person the information required by paragraphs (a) and (b) of this section. (e) Introduced accounts. Each statement provided pursuant to the provisions of this section must, if applicable, show that the account for which the banking institution was introduced by an introducing broker and the name of the introducing broker. (a) No implication or representation of limiting losses. No banking institution engaged in retail foreign exchange transactions or its related persons may imply or represent that it will, with respect to any retail customer forex account, for or on behalf of any person: (1) Guarantee such person or account against loss (2) Limit the loss of such person or account or (3) Not call for or attempt to collect margin as established for retail forex customers. (b) No implication of representation of engaging in prohibited acts. No banking institution or its related persons may in any way imply or represent that it will engage in any of the acts or practices described in paragraph (a) of this section. (c) No Federal government endorsement. No banking institution or its related persons may represent or imply in any manner whatsoever that any retail forex transaction or retail forex product has been sponsored, recommended, or approved by the Board, the Federal government, or any agency thereof. (d) Assuming or sharing of liability from bank error. This section shall not be construed to prevent a banking institution from assuming or sharing in the losses resulting from the banking institutions error or mishandling of a retail forex transaction. (e) Certain guaranties unaffected. This section shall not affect any guarantee entered into prior to the effective date of this part, but this section shall apply to any extension, modification or renewal thereof entered into after such date. Authorization to trade. (a) Specific authorization required. No banking institution may directly or indirectly effect a retail forex transaction for the account of any retail forex customer unless, before the transaction occurs, the retail forex customer specifically authorized the banking institution to effect the retail forex transaction. (b) A retail forex transaction is ldquospecifically authorizedrdquo for purposes Start Printed Page 21034 of this section if the retail forex customer specifies: (1) The precise retail forex transaction to be effected (2) The exact amount of the foreign currency to be purchased or sold and (3) In the case of an option, the identity of the foreign currency or contract that underlies the option. Trading and operational standards. (a) Internal rules, procedures, and controls required. A banking institution engaging in retail forex transactions shall establish and implement internal rules, procedures, and controls designed, at a minimum, to: (1) Ensure, to the extent reasonable, that each order received from a retail forex customer that is executable at or near the price that the banking institution has quoted to the customer is entered for execution before any order in any retail forex transaction for: (i) A proprietary account (ii) An account in which a related person has an interest, or any account for which such a related person may originate orders without the prior specific consent of the account owner, if the related person has gained knowledge of the retail forex customers order prior to the transmission of an order for a proprietary account (iii) An account in which a related person has an interest, if the related person has gained knowledge of the retail forex customers order prior to the transmission of an order for a proprietary account or (iv) An account in which a related person may originate orders without the prior specific consent of the account owner, if the related person has gained knowledge of the retail forex customers order prior to the transmission of an order for a proprietary account (2) Prevent banking institution related persons from placing orders, directly or indirectly, with another person in a manner designed to circumvent the provisions of paragraph (a)(1) of this section and (3) Fairly and objectively establish settlement prices for retail forex transactions. (b) Disclosure of retail forex transactions. No banking institution engaging in retail forex transactions may disclose that an order of another person is being held by the banking institution, unless the disclosure is necessary to the effective execution of such order or the disclosure is made at the request of the Board. (c) Handling of retail forex accounts of related persons of retail forex counterparties. No banking institution engaging in retail forex transactions shall knowingly handle the retail forex account of any related person of another retail forex counterparty unless the banking institution: (1) Receives written authorization from a person designated by such other retail forex counterparty with responsibility for the surveillance over such account (2) Prepares immediately upon receipt of an order for the account a written record of the order, including the account identification and order number, and records thereon to the nearest minute, by time-stamp or other timing device, the date and time the order is received and (3) Transmits on a regular basis to the other retail forex counterparty copies of all statements for the account and of all written records prepared upon the receipt of orders for the account pursuant to paragraph (c)(2) of this section. (d) Related person of banking institution establishing account at another retail forex counterparty. No related person of a banking institution working in the banking institutions retail forex business may have an account, directly or indirectly, with another retail forex counterparty unless the other retail forex counterparty: (1) Receives written authorization to open and maintain the account from a person designated by the banking institution of which it is a related person with responsibility for the surveillance over the account pursuant to paragraph (a)(2) of this section (2) Prepares immediately upon receipt of an order for the account a written record of the order, including the account identification and order number, and records thereon to the nearest minute, by time-stamp or other timing device, the date and time the order is received and (3) Transmits on a regular basis to the banking institution copies of all statements for the account and of all written records prepared by the other retail forex counterparty upon receipt of orders for such account pursuant to paragraph ( d)(2) of this section. (e) Prohibited trading practices. No banking institution engaging in retail forex transactions may: (1) Enter into a retail forex transaction, to be executed pursuant to a market or limit order at a price that is not at or near the price at which other retail forex customers, during that same time period, have executed retail forex transactions with the banking institution (2) Adjust or alter prices for a retail forex transaction after the transaction has been confirmed to the retail forex customer (3) Provide a retail forex customer a new bid price for a retail forex transaction that is higher than its previous bid without providing a new asked price that is also higher than its previous asked price by a similar amount (4) Provide a retail forex customer a new bid price for a retail forex transaction that is lower than its previous bid without providing a new asked price that is also lower than its previous asked price by a similar amount or (5) Establish a new position for a retail forex customer (except one that off sets an existing position for that retail forex customer) where the banking institution holds outstanding orders of other retail forex customers for the same currency pair at a comparable price. (a) Supervision by the banking institution. A banking institution engaging in retail forex transactions shall diligently supervise the handling by its officers, employees, and agents (or persons occupying a similar status or performing a similar function) of all retail forex accounts carried, operated, or advised by the banking institution and all activities of its officers, employees, and agents (or persons occupying a similar status or performing a similar function) relating to its retail forex business. (b) Supervision by officers, employees, or agents. An officer, employee, or agent of a banking institution must diligently supervise his or her subordinates handling of all retail forex accounts at the banking institution and all the subordinates activities relating to the banking institutions retail forex business. Notice of transfers. (a) Prior notice generally required. Except as provided in paragraph (b) of this section, a banking institution must provide a retail forex customer with 30 days prior notice of any assignment of any position or transfer of any account of the retail forex customer. The notice must include a statement that the retail forex customer is not required to accept the proposed assignment or transfer and may direct the banking institution to liquidate the positions of the retail forex customer or transfer the account to a retail forex counterparty of the retail forex customers selection. (b) Exceptions. The requirements of paragraph (a) of this section shall not apply to transfers: Start Printed Page 21035 (1) Requested by the retail forex customer (2) Made by the Federal Deposit Insurance Corporation as receiver or conservator under the Federal Deposit Insurance Act or other law or (3) Otherwise authorized by applicable law. (c) Obligations of transferee banking institution. A banking institution to which retail forex accounts or positions are assigned or transferred under paragraph (a) of this section must provide to the affected retail forex customers the risk disclosure statements and forms of acknowledgment required by this part and receive the required signed acknowledgments within sixty days of such assignments or transfers. This requirement shall not apply if the banking institution has clear written evidence that the retail forex customer has received and acknowledged receipt of the required disclosure statements. Customer dispute resolution. (a) No banking institution shall enter into any agreement or understanding with a retail forex customer in which the customer agrees, prior to the time a claim or grievance arises, to submit any claim or grievance regarding any retail forex transaction or disclosure to any settlement procedure. (b) Election of forum. (1) Within 10 business days after the receipt of notice from the retail forex customer that the customer intends to submit a claim to arbitration, the banking institution shall provide the customer with a list of persons qualified in dispute resolution. (2) The customer must, within 45 days after receipt of such list, notify the banking institution of the person selected. The customers failure to provide such notice shall give the banking institution the right to select a person from the list. (c) Enforceability. A dispute settlement procedure may require parties using the procedure to agree, under applicable state law, submission agreement, or otherwise, to be bound by an award rendered in the procedure if the agreement to submit the claim or grievance to the procedure was made after the claim or grievance arose. Any award so rendered by the procedure will be enforceable in accordance with applicable law. (d) Time limits for submission of claims. The dispute settlement procedure used by the parties may not include any unreasonably short limitation period foreclosing submission of a customers claims or grievances or counterclaims. (e) Counterclaims. A procedure for the settlement of a retail forex customers claims or grievances against a banking institution or employee thereof may permit the submission of a counterclaim in the procedure by a person against whom a claim or grievance is brought if the counterclaim: (1) Arises out of the transaction or occurrence that is the subject of the retail forex customers claim or grievance and (2) Does not require for adjudication the presence of essential witnesses, parties, or third persons over which the settlement process lacks jurisdiction. (f) Cross-border transactions. This section shall not apply to transactions within the scope of sections 202, 302, and 305 of the Federal Arbitration Act (9 U. S.C. 202. 302, and 305). Reservation of authority. The Board may modify the disclosure, recordkeeping, capital and margin, reporting, business conduct, documentation, or other standards or requirements under this part for a specific retail forex transaction or a class of retail forex transactions if the Board determines that the modification is consistent with safety and soundness and the protection of retail forex customers. End Part Start Signature By order of the Board of Governors of the Federal Reserve System, April 3, 2013. Margaret McCloskey Shanks, Deputy Secretary of the Board. End Signature End Supplemental Information 2. thinspDodd-Frank Act sectthinsp742(c)(2) (codified at 7 U. S.C. 2 (c)(2)(E) (2011). 3. thinspThe CEA defines ldquofinancial institutionrdquo to include an agreement corporation, an Edge Act corporation, a depository institution (as defined in section 3 of the Federal Deposit Insurance Act), a financial holding company (as defined in section 2 of the Bank Holding Company Act of 1956), a trust company, or ldquoa similarly regulated subsidiary or affiliate of an entityrdquo described above. 7 U. S.C. 1 a(21). 4. thinspFor purposes of the retail forex rules, ldquoFederal regulatory agencyrdquo includes ldquoan appropriate Federal banking agency. rdquo 7 U. S.C. 2 (c)(2)(E)(i)(III). The Board is an ldquoappropriate Federal banking agencyrdquo under the CEA. 7 U. S.C. 1 a(2). 5. thinspA retail customer is a person who is not an ldquoeligible contract participantrdquo under the CEA. See, 7 U. S.C. 1 a(18). 10. thinspThe Boards proposed rule did not expl icitly cover savings and loan holding companies (SLHCs). They have been added to the regulation to reflect the transfer to the Board of regulatory responsibility for SLHCs on July 21, 2011. 11. thinsp Regulation of Off-Exchange Retail Foreign Exchange Transactions and Intermediaries, 75 FR 55409 (Sept. 10, 2010) (Final CFTC Retail Forex Rule). The CFTC proposed these rules prior to the enactment of the Dodd-Frank Act. Regulation of Off-Exchange Retail Foreign Exchange Transactions and Intermediaries, 75 FR 3281 (Jan. 20, 2010) (Proposed CFTC Retail Forex Rule). 13. thinsp7 U. S.C. 2 (c)(2)(E). The federal regulatory authorities other than the Board are the CFTC, OCC, FDIC, the Securities and Exchange Commission, the National Credit Union Association, and the Farm Credit Administration. 14. thinspThe definition of ldquoeligible contract participantrdquo is found in section 1a(18) of the CEA and is discussed below. 17. thinsp See generally, CFTC v. Intl Fin. Servs. (New York), Inc., 323 F. Supp. 2d 482, 495 (S. D.N. Y. 2004) (distinguishing between foreign exchange futures contracts and spot contracts in foreign exchange, and noting that foreign currency trades settled within two days are ordinarily spot transactions rather than futures contracts) see also Bank Brussels Lambert v. Intermetals Corp., 779 F. Supp. 741, 748 (S. D.N. Y. 1991). 18. thinsp See generally, CFTC v. Intl Fin. Servs. (New York), Inc., 323 F. Supp. 2d 482, 495 (S. D.N. Y. 2004) (distinguishing between forward contracts in foreign exchange and foreign exchange futures contracts) see also William L. Stein, The Exchange-Trading Requirement of the Commodity Exchange Act, 41 Vand. L. Rev. 473, 491 (1988). In contrast to forward contracts, futures contracts generally include several or all of the following characteristics: (i) Standardized nonnegotiable terms (other than price and quantity) (ii) parties are required to deposit initial margin to secure their obligations under the contract (iii) parties are obligated and entitled to pay or receive variation margin in the amount of gain or loss on the position periodically over the period the contract is outstanding (iv) purchasers and sellers are permitted to close out their positions by selling or purchasing offsetting contracts and (v) settlement may be provided for by either (a) cash payment through a clearing entity that acts as the counterparty to both sides of the contract without delivery of the underlying commodity or (b) physical delivery of the underlying commodity. See, Edward F. Greene et al. U. S. Regulation of International Securities and Derivatives Markets sectthinsp14.082 (8th ed. 2006). 20. thinsp CFTC v. Zelener, 373 F.3d 861 (7th Cir. 2004) see also CFTC v. Erskine, 512 F.3rd 309 (6th Cir. 2008). 21. thinspFor example, in Zelener, the retail forex dealer retained the right, at the date of delivery of the currency to deliver the currency, roll the transaction over, or offset all or a portion of the transaction with another open position held by the customer. See CFTC v. Zelener, 373 F.3d 861, 869 (7th Cir. 2004). 22. thinsp See, e. g. CFTC v. Erskine, 512 F.3d 309, 326 (6th Cir. 2008) CFTC v. Zelener, 373 F.3d 861, 869 (7th Cir. 2004). 23. thinspThe term ldquoeligible contract participantrdquo is defined at 7 U. S.C. 1 a(18) and generally requires a corporation, partnership, proprietorship, organization, trust or other entity to have total assets exceeding 10 million and an individual to have more than 10 million in assets invested on a discretionary basis. 24. thinsp Further Definition of ldquoSwap Dealer, rdquo ldquoSecurity-Based Swap Dealer, rdquo ldquoMajor Swap Participantrdquo and ldquoEligible Contract Participant, rdquo 75 FR 80174 (December 21, 2010)(joint proposed rule with the SEC). 35. thinsp See National Futures Association, Forex Transaction: A Regulatory Guide 17 (Feb. 2011) New York Federal Reserve Bank, Survey of North American Foreign Exchange Volume tbl. 3e (Jan. 2011) Bank for International Settlements, Report on Global Foreign Exchange Market Activity in 2010 at 15 tbl. B.6 (Dec. 2010). 36. thinspSee 17 CFR 166.5. The CFTCs regulation permits predispute dispute settlement agreements with a customer with certain restrictions such as that signing the agreement must not be made a condition for the customer to utilize the services offered by the CFTC registrant. 37. thinspConvention on the Recognition and Enforcement of Foreign Arbitral Awards (1970). 38. thinspInter-American Convention on International Commercial Arbitration (1990). 39. thinsp9 U. S.C. 1 एट सीक Chapter 2 of the FAA (secs. 201-208) contains provisions implementing the New York Convention, while Chapter 3 of the FAA (secs. 301mdash307) contains provisions implementing the Panama Convention. 40. thinsp See SR Letter 94-11 (Feb. 17, 1994) see also SR Letter 95-46 (Sept. 14, 1995). 41. thinspU. S. Small Business Administration, Table of Small Business Size Matched to North American Industry Classification System Codes, 13 CFR 121.201 . FR Doc. 2013-08163 Filed 4-8-13 8:45 am BILLING CODE 6210-01-P