CFTC FCM Customer Notices and Disclosures
The CFTC, as provided by rule 1.55(k) has expanded an FCM’s customer disclosure requirements by requiring each FCM to provide existing and prospective customers with FCM-specific information that could have an impact on a customer’s decision to engage in a relationship with the FCM. Jefferies will update this information annually and as necessary to take into account of any material change to its business operations, financial condition or other factors that Jefferies believes may be material to a customer’s decision to do business with Jefferies.
Additionally, CFTC rule 1.55(o) requires an FCM to post on its website the following financial information: (1) daily customer segregated balances for no less than the previous twelve-month period; (2) monthly net capital balances for no less than the previous twelve-month period; (3) the FCM’s most current certified annual financial report and footnotes; and, (4) the FCM’s unaudited Form 1-FR or FOCUS Report for the current period and for each of the previous twelve months.
In this regard, please be advised that Jefferies LLC ceased carrying customer commodities accounts and holding customer funds related to those accounts on October 22, 2015. Since that date Jefferies LLC has not held customer funds required to be segregated under CFTC regulation 1.20, customer secured amount funds under CFTC regulation 30.7, or cleared swaps customer collateral required to be segregated under CFTC regulation 22.2.
Rule 1.55(o) also requires that each FCM provide a statement on its website that financial information regarding the FCM, including how the FCM invests and holds customer funds, may be obtained from the National Futures Association (“NFA”). Such information may be found on the NFA’s website at http://www.nfa.futures.org/basicnet, and then click on “View Financial Information” on the FCM’s BASIC Details page.
Rule 1.55(o) also requires an FCM to post on its website that additional information on all FCMs is available from the CFTC. Such information may be found on the CFTC’s website at http://www.cftc.gov/MarketReports/financialfcmdata/index.htm.
Jefferies' Monthly Form 1-FR-FCM or FOCUS Reports for current month and previous 12 months
February 2017 FOCUS Report Excerpt