Regulations - Customer Complaints

Customer Complaints
Complaints must involve a commodity futures trading professional registered with the CFTC who is alleged to have engaged in activities which violate either the Commodity Exchange Act or CFTC regulations. Illegal activities include, but are not limited to:

  1. unauthorized trading of your account,
  2. misrepresentation,
  3. nondisclosure,
  4. churning (trading excessively to generate commissions),
  5. bucketing,
  6. violations of fiduciary duty, and
  7. misappropriation of funds.

The transactions involved can include futures contracts, options on futures contracts or on physical commodities.

Customers with valid complaints along these lines are entitled to adjustments to their accounts. Under the following circumstances, a customer's claim can be considered under the CFTC's reparations program:

  1. the individuals or firms named in the complaint are currently registered or were registered with the CFTC at the time of the alleged violation;
  2. the complaint has been mailed to the CFTC Office of Proceedings within two years after the resulting loss is realized for accounting purposes; and
  3. the proposed respondents are not in bankruptcy or receivership proceedings.

The facts outlined in the complaint must show that:

  1. losses claimed as damages are the result of the activities described;
  2. the proposed respondents named in the complaint engaged in these activities; and,
  3. these activities appear to be in violation of the Commodity Exchange Act or CFTC regulations.
Promotional Material


Related Articles
  1. Credit & Loans

    When, Why And How To File A Complaint With The CFPB

    When the employees you interact with at your bank, credit card company, mortgage lender or other financial institution seem incapable of or unwilling to resolve your complaint, the Consumer Financial ...
  2. Economics

    8 Biggest Global Trade Offenders

    Countries launch protectionist policies to keep domestic producers safe. We list the top eight offenders.
  3. Forex Education

    New Forex Rules Cap Losses - And Profits

    The CFTC is considering reducing the maximum amount of leverage in the forex market to 10:1. Find out what this change would mean for traders.
  4. Options & Futures

    Tips For Resolving Disputes With Your Financial Advisor

    Before you blame your advisor for your losses, be sure you know your rights and responsibilities.
  5. Options & Futures

    So, You Want To Take Your Broker To Court

    Find out how to file a claim with your broker and what you can expect throughout the process.
  6. Options & Futures

    Get To Know These Crucial US Options Market Regulations

    How are options regulated in the U.S and which organizations are involved in options market regulations?
  7. Options & Futures

    The National Futures Association As Market Watchdog

    As the overseer of the commodities and futures industry, the NFA helps to protect investors from fraudulent futures activities.
  8. Insurance

    Futures Fundamentals: The Players

    The players in the futures market fall into two categories: hedgers and speculators. Hedgers Farmers, manufacturers, importers and exporters can all be hedgers. A hedger buys or sells in the ...
  9. Brokers

    Is Your Broker Ripping You Off?

    We show you how to resolve a problem without getting the lawyers involved.
  10. Investing Basics

    How To Invest In Commodities

    Find out which futures, options or funds will be your perfect commodity portfolio fit.
RELATED TERMS
  1. Commodity Futures Trading Commission ...

    An independent U.S. federal agency established by the Commodity ...
  2. Commercial Trader

    A classification used by the Commodity Futures Trading Commission ...
  3. Commodity Exchange Act - CEA

    An act passed in 1936 by the U.S. Government that provides federal ...
  4. Commitments of Traders Report - ...

    A report published every Friday by the Commodity Futures Trading ...
  5. Breach Of Contract

    Violation of any of the agreed-upon terms and conditions of a ...
  6. Reporting Level

    A level of ownership of a specific futures position wherein the ...
RELATED FAQS
  1. How can key performance metrics (KPIs) help evaluate employees?

    Discover how key performance indicators can be used to evaluate employee performance around goals which support organizational ... Read Answer >>
  2. How can I trade in foreign futures?

    Discover how an American investor can get started in trading foreign futures, including which regulations and restrictions ... Read Answer >>
  3. What do I do if I think an accountant is in violation of the Generally Accepted Accounting ...

    Learn where to report financial accounting fraud if you suspect an accountant is in violation of the generally accepted accounting ... Read Answer >>
  4. Committing acts against the Commodity Exchange Act can result in fines up to ... ...

    Free info on financial certification exams including study guides, exam questions, and much more! Read Answer >>
  5. What is a call rule?

    A call rule is a rule used in the futures exchange market. It is a rule that requires the formal bidding amount of a cash ... Read Answer >>
  6. Who regulates the various types of exchange traded funds (ETFs)?

    Discover who regulates various types of exchange-traded funds. The share of investment capital going towards ETFs continues ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center