[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR166.2]

[Page 590]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 166_CUSTOMER PROTECTION RULES--Table of Contents
 
Sec.  166.2  Authorization to trade.

    No futures commission merchant, introducing broker or any of their 
associated persons may directly or indirectly effect a transaction in a 
commodity interest for the account of any customer unless before the 
transaction the customer, or person designated by the customer to 
control the account:
    (a) Specifically authorized the futures commission merchant, 
introducing broker or any of their associated persons to effect the 
transaction (a transaction is ``specifically authorized'' if the 
customer or person designated by the customer to control the account 
specifies (1) the precise commodity interest to be purchased or sold and 
(2) the exact amount of the commodity interest to be purchased or sold); 
or
    (b) Authorized in writing the futures commission merchant, 
introducing broker or any of their associated persons to effect 
transactions in commodity interests for the account without the 
customer's specific authorization; Provided, however, That if such 
futures commission merchant, introducing broker or any of their 
associated persons is also authorized to effect transactions in foreign 
futures or foreign options without the customer's specific 
authorization, such authorization must be expressly documented.

[48 FR 35304, Aug. 3, 1983, as amended at 52 FR 29003, Aug. 5, 1987]