Series 3 - National Commodities Futures

AAA

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.
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