Reports to Customers/Confirmations/Monthly Summaries
See generally Rule 2-44 Forex Customer statements here: www.nfa.futures.org/nfamanual/NFAManual.aspx?RuleID=RULE%202-44&Section=4.
Written confirmation provided to customers within one business day of activity.
Written confirmation must include the following information:
- Date;
- Transaction type (e.g., new position, offsetting position, rollover, adjustment);
- Currency pair;
- Buy or sell (if a new or offsetting position);
- Size;
- Price or premium (for new or offsetting positions or price adjustments);
- Price or premium change (for price adjustments);
- Monetary adjustments (debit or credit);
- Net profit or loss for offsetting positions; and
- Charges for each transaction (e.g., rollover interest and/or fees).
Daily statements must be provided to customers on a daily basis and must show account equity as of the end of the previous day. They can be provided electronically and can be combined with confirmations and provided electronically with the customers consents
Monthly statements are required for all accounts that have open positions at the end of the month or changes in the account balance or equity since the prior statement. Quarterly statements are required for all other open accounts. The monthly or quarterly statements must contain the following information regarding the transactions during the reporting period and the funds in the account:
- The account equity at the beginning of the reporting period;
- All initiating or offsetting transactions, deliveries, option exercises, or option expirations that occurred during the reporting period, with the following information for each: date, currency pair, buy or sell, size, and price or premium (with any price or premium adjustment noted);
- All open positions in the account, with the following information for each position: date initiated, currency pair, long or short, size, price or premium at which it was initiated (with any price or premium adjustment noted), and the unrealized profit or loss;
- All deposits and withdrawals during the reporting period;
- All other monetary adjustments (debits and credits) to the account;
- The amount of cash in the account (excluding non-cash collateral and unrealized profits and losses);
- A breakdown by type of all fees and charges during the period, including commissions and interest expense or rollover fees; and
- The account equity at the end of the reporting period.
Study Guide >>Forex Regulations >> Reports to Customers, Confirmations, Monthly Summaries