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RELEASE: pr5377-07

  • Release: 5377-07

    For Release: August 30, 2007

    CFTC’s Division of Clearing and Intermediary Oversight Issues Advisory on Forex Transactions

    Washington, DC – The Division of Clearing and Intermediary Oversight (DCIO) of the Commodity Futures Trading Commission (CFTC) has issued an Advisory concerning retail off-exchange foreign currency futures or option (forex) transactions.

    The DCIO Advisory addresses the following issues: (1) registration requirements for associated persons of firms registered as introducing brokers (IBs), commodity trading advisors, and commodity pool operators that are involved in forex transactions; (2) the permissibility of certain unregistered affiliates of a futures commission merchant (FCM) to act as proper counterparties in forex transactions; (3) claims that forex customer funds are segregated; (4) introducing entities acting as FCMs; (5) the applicability of the IB guarantee agreement to forex transactions and prohibiting guaranteed IBs from introducing forex transactions to an FCM that is not its guarantor FCM; (6) prohibiting forex account statements of an FCM’s unregistered affiliate from being included in the FCM’s account statements to its customers; and (7) prohibiting retail customers from acting as counterparties to each other in forex transactions.

    The Advisory may be accessed at the CFTC’s website at

    Media Contacts
    Ianthe Zabel

    R. David Gary

    Last Updated: July 7, 2010

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