(a) Specific authorization required. No banking institution may directly or indirectly effect a retail forex
transaction for the account of any retail forex customer unless, before the
transaction occurs, the retail forex customer specifically authorized the
banking institution to effect the retail forex transaction.
(b) A retail forex transaction is “specifically authorized” for purposes
of this section if the retail forex customer specifies:
(1) The precise retail forex transaction to be effected;
(2) The exact amount of the foreign currency to be purchased or sold;
and
(3) In the case of an option, the identity of the foreign currency or
contract that underlies the option.
