Overview
The Commodities Futures Trade Commission (CFTC) requires futures commission merchants to establish, maintain, and enforce risk management policies and procedures. These policies and procedures must be designed to oversee and control risks associated with the activities of a futures commission merchant (the FCM). This course will explore those requirements.
Learning Objectives
Upon completion of this course, you should understand the obligation to:
- Adopt risk management policies and procedures to oversee and control risks associated with the merchant's activities.
- Maintain written policies and procedures describing the risk management program of the FCM.
- Get approval from the governing body of the, in writing, of any risk management program the governing body of the FCM.
- When applying for registration, furnish a copy of the written risk management policies and procedures to the CFTC and the FCM's designated self-regulatory organization.
Designed For
Registered Representatives
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