“At Sweet Futures, we care about our clients. We know how important it is for our customers to have total confidence in the financial Industry. We want you always to have peace of mind when you’re dealing with Sweet Futures.”
Our team takes very seriously and adheres to all rules and regulations. Most employees are all certified in ethics training, cyber security and anti- money laundering. All maintain the necessary licenses required to conduct business in the commodity futures industry.
In compliance with segregation requirements, an FCM must do the following
- Customer funds must be maintained at banks in clearly identified “segregated funds,” in accounts separate and apart from any other funds of the FCM.
- Each bank must sign a written acknowledgment that (i) the segregated funds are held in the account in accordance with the Commodity Exchange Act and CFTC regulations, and (ii) that the bank will not hold, dispose of, or use any of the segregated assets for anyone, including the FCM, other than the FCM’s customers.
- The assets of one customer at an FCM may not be used to purchase, margin or settle the trades or positions, or to secure or extend credit, of any other customer.
- An FCM can only invest segregated assets in funds guaranteed by the United States or other allowed instruments. Investments may include U.S. Treasury securities, municipal securities, government sponsored agency securities, certificates of deposit or money market mutual funds.
- Segregated assets may only be invested through, or deposited in, customer segregated funds accounts.
- FCMs must keep a “real time” record of customer segregated funds and assets.
- Every business day, the total amount of customer assets required to be segregated and the total amount of assets actually deposited in segregated accounts must be calculated as of the close of the previous business day.
Funds of clients trading on foreign exchanges
CFTC Regulations also require an FCM to maintain separate accounts, funds, and assets sufficient to satisfy all of its current obligations to customers that are trading futures and options on foreign exchanges. An FCM such as ours may not commingle set-aside funds with their own, proprietary, or non-customer funds or accounts. Additionally, an FCM cannot hold or commingle set-aside funds with those of customers trading on U.S. exchanges.
How an FCM protects the funds of clients trading on foreign commodity exchanges
An FCM must maintain set-aside funds in accounts identified as such, as required by CFTC Regulations. Each bank signs a written statement that acknowledges the bank understands the nature of the funds in the account. As of the close of each business day, an FCM computes their total set-aside funds, the secured amount, and the set-aside funds’ excess or deficiency.
In general, a bank or trust company located outside the United States, whose commercial paper or long-term debt is rated in one of the two highest rating categories by Standard & Poor’s Corporation or Moody’s Investors Service, Inc., is recognized by the CFTC as an acceptable depository for set-aside funds. Since the secured amount at all times must be liquid and sufficient to cover all obligations to its customers trading on foreign markets, an FCM’s investment in those funds must be consistent with that requirement.
The CFTC has consistently taken a stringent enforcement approach to its regulations, requiring FCMs to segregate customers’ assets. An FCM’s compliance with the CFTC’s segregation and related record keeping rules is monitored, not only by the CFTC but also by the “self-regulatory organizations” to which ongoing examination and surveillance of an FCM is delegated. Enforcement penalties resulting from violations of these requirements may be quite severe.