Regulations - Summary And Review
An Associated Person (AP) is one of several kinds of individuals or firms that must register with the FCTC; each of these categories has its own rules governing registration. The AP must be familiar with rules governing opening accounts and reporting positions, as well as rules governing futures commission merchants (FCMs), introducing brokers (IBs), commodity pool operators (CPOs) and commodity trading advisors (CTAs). The AP must further be familiar with NFA rules governing arbitration and disciplinary proceedings.
- A firm need not register with the CFTC if it is already registered with the:
- Both A and B
- Neither A nor B
- Every AP is qualified to
I. take customer orders
II. trade on her firm's account
III. trade on a customer's discretionary account
IV. supervise other APs
a. I only
b. I and II
c. I, II and III
d. I, II, III and IV
- Large-scale traders must report their positions
- Which is NOT a stipulation of Rule 2-29 governing public communications?
- Promotional materials may not be deceptive or misleading
- Promotional materials may not use high-pressure sales tactics
- Testimonials must prominently state, in all cases, that they are paid testimonials.
- Must be accompanied by an equally prominent statement of the risk of loss
- Which statement about disciplinary procedures is TRUE :
- Investigations are initiated by the NFA's Business Conduct Committee.
- All violations are dealt with through the procedure of convening hearings.
- There is no appeal in the disciplinary hearing process.
- Monetary fines cannot exceed $250,000.
- A securities broker/dealer may offer security futures contracts.
- Which of the following individuals may approve security futures accounts?
- Series 24
- Series 3
- Series 30
- Series 53
- The following are self-regulatory organizations.
I. The SEC
1. II, III, V
2. I, III, V
3. II, III
4. I,II, III
- Brokerage and futures accounts are subject to substantially similar rules on account protection.
- Associated persons are subject to binding arbitration as are FINRA securities licenses.
Investing BasicsCommodity prices are believed to be a leading indicator of inflation, but does it always hold?
Options & FuturesIn a financial context, quadruple witching refers to the day on which contracts for stock index futures, index options, and single stock futures expire.
Options & FuturesEquity derivatives offer retail investors opportunities to benefit from an underlying security without owning the security itself.
Fundamental AnalysisLearn how commodities took a big hit in 2015 with a huge variance in performances. Discover how the major commodities performed over the year.
Stock AnalysisLearn about the significant risks of investing in SandRidge. Read how the company may not be able to service its substantial debt load.
Options & FuturesFutures have a number of advantages over options such as fixed upfront trading costs, lack of time decay and liquidity.
Chart AdvisorThe charts of these three exchange traded funds suggest that commodities are stuck in a downtrend and it doesn't look like it will reverse any time soon.
Fundamental AnalysisRead about the changing economics of the oil business. Discover how oil companies are using technology to increase the efficiency of old wells.
Investing BasicsBecoming a self-taught financial expert may not be as daunting of a task as it seems.
Options & FuturesIt’s important for both hedgers and speculators to know whether the commodity futures markets are in contango or normal backwardation.
A derivative that confers the right, but not the obligation, ...
A derivative contract through which two parties exchange financial ...
Making an investment to reduce the risk of adverse price movements ...
The movement of the price of a futures contract towards the spot ...
Crude oil is a naturally occurring, unrefined petroleum product ...
An auction market in which participants buy and sell commodity/future ...
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
There are several hedge funds that invest in commodities. Many hedge funds have broad macroeconomic strategies and invest ... Read Full Answer >>
Financial advisors are not required to have university degrees. However, they are required to pass certain exams administered ... Read Full Answer >>
Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
If you are older than 59.5 and have been contributing to your IRA for more than five years, you may withdraw funds to pay ... Read Full Answer >>