Futures Account Opening Requirements

What this video covers

• Why futures Know Your Customer (KYC) is an information and disclosure rule, not a suitability veto that bars a customer from trading
• The strict pre-trading timing for KYC information gathering and risk disclosure, and when the firm must refresh the assessment
• Why the risk-disclosure statement must be delivered verbatim and why only nonsubstantive additions are permitted
• The signed, dated acknowledgment requirement and why it must precede account opening and any trading
• The three-document account-opening package and its chronological flow: customer information form, verbatim risk-disclosure acknowledgment, then the commodity customer agreement
• The written power of attorney (POA) requirement for full discretion and the narrow time-and-price-discretion exception
• The two-year continuous registration experience requirement for an associated person (AP) before exercising discretion, and why written authorization plus supervision are necessary but not sufficient without it