Regulatory docs

Account forms, risk disclosures, statements, prohibited practices, margin treatment, NI 93-101 business-conduct duties, and how client assets must be held.

1. 2.1–2.2

   Client interactions and reporting

   • Hedger classification procedures; a qualified hedger may be treated as institutional.
   • Position, concentration, P&L and exception reporting; capital on open positions.

2. 2.3

   Prohibited practices

   • No trading without adequate margin, beyond credit limits, or with cumulative losses past risk limits.
   • Permitting a client to keep trading after blowing a credit limit is a breach.

3. 2.5

   Account opening documents

   • Derivatives Account Application Form — completed before the first trade.
   • Derivatives Trading Agreement, Risk Disclosure Statement (CIRO-approved).
   • OEO OTC accounts: extra disclosure of the % of such accounts that were profitable in each of the last four quarters.
   • Managed/Discretionary Account Agreements must define the scope of authority.
   • Margin Agreement, Hedge Agreement, futures porting disclosures, Authority to Transfer Funds.

4. 2.6

   Client statements

   • Monthly statements for unexpired options must show type, strike and the futures delivery date.
   • Liquidating futures trades: exchange, delivery month, net P&L.
   • Performance and fee/charge reports: within 10 days after the account statement for the same period.

5. 2.7

   NI 93-101

   • Disclose derivatives risks when opening an account.
   • Keep client assets separate from dealer funds.
   • Senior derivatives manager, policies, complaint handling, fair dealing.