For Release: June 5, 1997
CFTC Issues Guidance to Futures Commission Merchants Permitting Use of Electronic Media to Deliver Monthly, Confirmation and Purchase-and-Sale Statements and to Retain Related Records
Chairperson Brooksley Born announced today that the Commodity Futures Trading Commission has issued an Advisory providing guidance to futures commission merchants (FCMs) concerning the use of electronic media to deliver and retain confirmation, purchase- and-sale and monthly statements. Chairperson Born stated that the CFTC's action "opened the way for futures brokers to make use of electronic media in communicating with their customers." She described the Commission's move to foster FCMs' use of electronic media as "the most recent of a series of actions by the Commission to assure that our regulatory program, the regulated industry and futures customers reap the benefits of technological advances."
Under the Commission's Advisory, an FCM may deliver statements required by Commission rules 1.33 and 1.46 to any customer solely by means of electronic media, once the FCM obtains the informed, revocable consent of the customer to the receipt of electronic delivery. An FCM may maintain related records either pursuant to the Commission's own recordkeeping rule (rule 1.31) or as allowed by Securities and Exchange Commission regulations for broker- dealers.
A copy of the Advisory may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, DC 20581, (202) 418-5100.