|
PureBytes Links
Trading Reference Links
|
> My question focus's on the following statement:
>
> "The Company shall not be responsible for any losses related to the
> Accounts and incurred as a result of other than its own gross negligence
> or willful misconduct concerning the execution of trades for the
> account"
I currently have a case before the CFTC which concerns a similar
contractual out. The quick answer to your question is that the court,
or whatever jurisdiction the dispute is submitted to, decides what
that language means. Unfortunately, it would be your burden to prove
the "willful" part, which is impossible. Scratch out "gross" and "willful"
and you are in business.
I plan to pursue a interpretation of the CFTC regulations which would
counter this type language, but I can't reveal it at the moment. I
may be kidding myself. There should be language which states that
nothing in the contract can abrogate or supercede the regulations of
the CFTC.
You would be wise to have the broker state all instances which led
to customer losses which were a result of broker or floor trader
error and were not reimbursed by the broker. Also tape record any
discussions, after suitable warnings, concerning how the broker
interprets the language.
Just understand that stupid errors do occur and can lead to major
losses. Your concern is justified.
JFB
Shaven Heads Trading
NYC
|