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Kevin,
You didn't read my note. There is state licensure of commodity brokers. I paid
$80/yr. to the state of Ca. Wanna see the canceled checks? AMA
Kevin wrote:
> I was going to stay out of this, but it is now out of hand. You'all are
> drifting back and forth between SEC and CFTC regs.
>
> As I recall, Securities Brokers need to be registered in each state they do
> business, and many states now charge a fee to be registered in their state.
> I think this gives each State AG the hammer on bad stock brokers.
>
> CFTC (futures) regs are a whole different deal. There is no state
> registration requirement for futures brokers.
>
> CFTC is authorized by congress.
>
> The CEA (Commodities Exchange Act) of 1980something stipulates that all
> exchanges, AP's, etc be a member of a Self-Regulatory organization. To date,
> there is only one self regulatory organization, the NFA. (As a side note, I
> find it interesting that congress stipulates that we be a member of the NFA,
> which we fund ourselves through NFA fees. But,,, each time a budget bill
> comes up some genious decides we should also fund the CFTC through
> transaction fees. Think about it.)
>
> And finally, to the original question. The owner of a futures account can
> grant a limited power of attorney to anyone. This means the person can place
> orders on behalf of the account, but he can not order money sent out of the
> account. A person who has POA over a futures account and is not registered
> as a CTA must sign a form which in laymens terms says:
>
> 1) He has not spoken to more than 12 people in the last 15 months about
> futures ( I may have the numbers transposed)
>
> 2) He does not recieve any compensation for any of his services.
>
> 3) He does not represent himself to the public as being in the business of
> trading futures.
>
> I've got a memo in my desk somewhere which is a NFA or CFTC interpretation
> of these item's. In Brief, since nobody but your family would know that you
> trade futures, the only accounts you can receive trading authority over are
> family accounts.
>
> Sooooo, back to the original question in this thread: Yes, you can trade a
> family members account if the account owner signs a Ltd power of attorney to
> you and you do not charge for your services and you never tell a soul that
> you trade futures.
>
> To have trading authority over anyone else's account you need to be a CTA.
>
> Having said all this, I have found that each FCM has their own policy on
> this matter.
>
> (I'm writing this from memory so don't get too picky)
>
> Cheers
>
> Kevin
>
> Alan M. Abraham wrote:
> >
> >Gary,
> >
> >The CFTC was chartered by the US Congress. It formulated the NFA. Each
> >has separate functions. Thier rules and regulations are FEDERAL and
> >therefore superceed all state regulations. In fact, most of the states
> >get into the act so they can collect a state license fee from brokers who
> >live in thier state, and increase thier revenue. I use to pay about $80
> >a yr. to Ca. for no reason I could figure. If you follow the federal
> >regulations you will most likely be ok. The information number for the
> >NFA is: (800)621-3570. AMA
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