GroundRules
12 CFR 240.12: Authorization to trade.
Where this section sits in the code
- Title 12—Banks and Banking
- CHAPTER II—FEDERAL RESERVE SYSTEM
- SUBCHAPTER A—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
- PART 240—RETAIL FOREIGN EXCHANGE TRANSACTIONS (REGULATION NN)
(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.
Collected 2026-08-27T02:24:16Z. Source file · JSON