(a) Monthly statements. Each banking institution must promptly furnish
to each retail forex customer, as of the close of the last business
day of each month or as of any regular monthly date selected, except
for accounts in which there are neither open positions at the end
of the statement period nor any changes to the account balance since
the prior statement period, but in any event not less frequently than
once every three months, a statement that clearly shows:
(1) For each retail forex customer:
(i) The open retail forex transactions with prices at which acquired;
(ii) The net unrealized
profits or losses in all open retail forex transactions marked to
the market;
(iii)
Any money, securities or other property held as margin for retail
forex transactions; and
(iv) A detailed accounting of all financial
charges and credits to the retail forex customer’s retail forex accounts
during the monthly reporting period, including: money, securities,
or property received from or disbursed to such customer; realized
profits and losses; and fees, charges, and commissions.
(2) For each retail forex
customer engaging in retail forex transactions that are options:
(i) All such options purchased, sold, exercised, or expired during
the monthly reporting period, identified by underlying retail forex
transaction or underlying currency, strike price, transaction date,
and expiration date;
(ii) The open option positions carried for such customer and arising
as of the end of the monthly reporting period, identified by underlying
retail forex transaction or underlying currency, strike price, transaction
date, and expiration date;
(iii) All such option positions marked
to the market and the amount each position is in the money, if any;
(iv) Any money, securities
or other property held as margin for retail forex transactions; and
(v) A detailed accounting
of all financial charges and credits to the retail forex customer’s
retail forex accounts during the monthly reporting period, including:
money, securities, or property received from or disbursed to such
customer; realized profits and losses; premiums and mark-ups; and
fees, charges, and commissions.
(b) Confirmation statement. Each banking institution must, not later than the next business
day after any retail forex transaction, send:
(1) To each retail forex customer, a written
confirmation of each retail forex transaction caused to be executed
by it for the customer, including offsetting transactions executed
during the same business day and the rollover of an open retail forex
transaction to the next business day;
(2) To each retail forex customer engaging
in forex option transactions, a written confirmation of each forex
option transaction, containing at least the following information:
(i) The retail forex customer’s account identification number;
(ii) A separate listing
of the actual amount of the premium, as well as each mark-up thereon,
if applicable, and all other commissions, costs, fees and other charges
incurred in connection with the forex option transaction;
(iii) The strike price;
(iv) The underlying
retail forex transaction or underlying currency;
(v) The final exercise date of the forex
option purchased or sold; and
(vi) The date the forex option transaction
was executed.
(3) To each retail forex customer engaging
in forex option transactions, upon the expiration or exercise of any
option, a written confirmation statement thereof, which statement
shall include the date of such occurrence, a description of the option
involved, and, in the case of exercise, the details of the retail
forex or physical currency position which resulted therefrom including,
if applicable,
the final trading date of the retail forex transaction underlying
the option.
(c) Notwithstanding the
provisions of paragraphs (b)(1) through (3) of this section, a retail
forex transaction that is caused to be executed for a pooled investment
vehicle that engages in retail forex transactions need be confirmed
only to the operator of such pooled investment vehicle.
(d) Controlled accounts. With respect to any account controlled by any person other than
the retail forex customer for whom such account is carried, each banking
institution shall promptly furnish in writing to such other person
the information required by paragraphs (a) and (b) of this section.
(e) Introduced accounts. Each statement provided pursuant to the provisions of this section
must, if applicable, show that the account for which the banking institution
was introduced by an introducing broker and the name of the introducing
broker.
