Release: #4106-98

For Release: February 13, 1998

CFTC Adopts Amendments to Its Risk Disclosure Rules Governing Futures Commission Merchants and Introducing Brokers

Washington -- The Commodity Futures Trading Commission (Commission) announced today that it has adopted amendments to its risk disclosure rules governing futures commission merchants and introducing brokers. The amendments are designed to speed the account opening process for certain categories of financially sophisticated investors. Specifically, the changes eliminate current Commission requirements that futures commission merchants and introducing brokers provide certain specified categories of customers with standardized risk disclosure statements and, in return, receive a signed acknowledgment of such disclosure when opening accounts for these customers. The categories of customers to whom the relief applies consist primarily of institutional investors and high net worth individuals. While the rule amendments relieve futures commission merchants and introducing brokers of specific obligations to provide standardized risk disclosure statements to qualifying customers, the rule changes do not relieve these registrants of any other disclosure obligations that they may have under applicable law. Specifically, the amendments modify Commission rules 1.55, 1.65, 30.6, 33.7 and 190.10(c).

The rule amendments adopted by the Commission are substantially the same as the proposed rule amendments that were published in the Federal Register on September 10, 1997. However, in response to comments received, the Commission removed "government entities" from the categories of customers for whom this relief can be claimed. The rule amendments will be published in the Federal Register next week and will become effective 60 days after publication. The Federal Register release concerning these rule amendments will also be posted on the Commission's Internet homepage ( In addition, copies of the rule amendments may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100.