'Customer Segregated Acc.t' in USD Vs. 'Customer Secured account' in FOREIGN CURRENCY

Discussion in 'Retail Brokers' started by Bernard111, Jan 31, 2006.

  1. Bernard111

    Bernard111

    If you open a futures account, your broker/FCM will instruct you about the banking data necessary to fund your account. Usually the details regarding opening an accoint in USD are different vs. a funding with a foreign currency.

    U.S. regulators will not allow foreign currency to be put into segregated accounts. The overseas equivalent to segregation is the CFTC ruling 30.7 – customer secured accounts.

    So if a trader funds his account to trade futures in EUR, GBP, SWF, etc. with US-based broker he will be covered by the CFTC ruling 30.7.

    - Anyone is able to explain me please which are the differences of safeguards and consequences between USD funded 'customer SEGREGATED account' and 'customer SECURED account' funded with a FOREIGN CURRENCY?
     
    #1     Jan 31, 2006
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