[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR31.20]

[Page 378]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 31_LEVERAGE TRANSACTIONS--Table of Contents
 
Sec.  31.20  Prohibition of guarantees against loss.

    (a) No leverage transaction merchant shall in any way represent that 
it will, with respect to any leverage contract in any account carried by 
the leverage transaction merchant for or on behalf of any person:
    (1) Guarantee such person against loss;
    (2) Limit the loss of such person; or
    (3) Not call for or attempt to collect initial, minimum or 
maintenance leverage margin established for customers.
    (b) No person shall in any way represent that a leverage transaction 
merchant will engage in any of the acts or practices described in 
paragraphs (a)(1), (a)(2) or (a)(3) of this section.
    (c) This section shall not be construed to prevent a leverage 
transaction merchant from assuming or sharing in the losses resulting 
from an error or mishandling of an order.
    (d) This section shall not affect any guarantee entered into prior 
to the effective date of this section, but this section shall apply to 
any extension, modification or renewal thereof entered into after such 
date.

[49 FR 5540, Feb. 13, 1984]