The National Futures Association ("NFA") proposed amending the disclosure document that broker-dealers send to customers who trade in security futures products. The amendment was proposed in accordance with an increase in Securities Investor Protection Corporation ("SIPC") coverage for cash protection for security futures contracts held in a securities account.
The proposed amendment would modify the text of the Risk Disclosure Statement required by NFA Compliance Rule 2-30(b), which is contained in an Interpretive Notice titled " Compliance Rule 2-30(b): Risk Disclosure Statement for Security Futures Contracts." The Risk Disclosure Statement would be amended to reflect an increase in SIPC coverage for cash protections from $100,000 to $250,000.
The amendments will become effective ten days after receipt of the submission by the CFTC, unless otherwise determined.
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