Trading standards for commodity futures brokers
29.—(1)  A commodity futures broker shall not withhold or withdraw from the market any order or any part of an order from a client for its benefit, the benefit of connected persons, or for the convenience of another person.
(2)  A commodity futures broker shall not buy for its own account, accounts belonging to connected persons, or for an account in which it has an interest (including any account over which it has discretion) when it has in hand orders to buy for others at the prevailing market price or at the same price.
(3)  A commodity futures broker shall not sell for its account, accounts being to connected persons or for an account in which it has an interest (including any account over which it has discretion) when it has in hand orders to sell for others at the prevailing market price or at the same price.
(4)  A commodity futures broker shall not knowingly take, directly or indirectly, the other side of an order from its client for its own account or for the accounts of connected persons, except with the client’s prior consent and in accordance with such rules of a Commodity Futures Exchange as have been approved by the Board.
(5)  A commodity futures broker, shall not divulge information relating to an order held by the commodity futures broker, unless such disclosure is necessary for the effective execution of such order or in compliance with such rules of the Commodity Futures Exchange as have been approved by the Board or at the request of the Board.
(6)  Commodity futures brokers and their representatives shall not accept or agree to accept any power or authority from any person or any third party acting on behalf of such person to deal in any commodity futures market for the account of such person, at the discretion of the futures broker or its representative, except in circumstances and upon the following terms and conditions:
(a)a discretionary account may be accepted and operated only in circumstances when it is necessary to do so and at the request of the customer;
(b)the agreement for the operation of a discretionary account shall be duly executed by the customer, the representative, if any, and the commodity futures broker;
(c)the agreement shall contain the following statements which shall be printed in bold type and prominently displayed at the beginning of the agreement —
“(1) This is a most important document, particularly because it attaches personal liabilities to the customer. The customer is strongly advised to consult his accountant, bank manager, solicitor or other professional adviser prior to the customer’s execution of this document.
(2) The RAS Commodity Exchange Limited (or the name of the Exchange in the case of another Exchange) has introduced certain guidelines for the operation of discretionary accounts, a copy of which will be made available to you upon request.”;
(d)the commodity futures broker shall explain fully to the customer before the agreement is executed, the statements contained in the agreement and the customer’s risks and liabilities thereunder;
(e)the commodity futures broker shall furnish to the customer in writing at such times as are requested by the customer full details of the transactions executed on his behalf and the positions and equity in the customer’s account; and
(f)discretionary account orders shall be transmitted to the dealing room or trading floor in writing with the account designation clearly indicated.