Alaron will receive and place orders for the Accounts in accordance to instructions transmitted by IB, but only insofar as such orders are transmitted by IB to Alaron. Alaron may, but shall not be obligated to, place orders received directly from a Customer. Alaron reserves the right to refuse to accept new orders for Accounts and to require all trades be only for the liquidation of open futures contracts carried by Alaron for IB's Accounts.
Alaron will prepare and transmit to the Customer reports of execution, margin calls, monthly statements, and other such documents as may be required by the CFTC or any self-regulatory organization or contract market. Alaron will provide for IB copies of such statements transmitted to Customers.
Alaron will hold cash, securities, and other property received from or on behalf of Customers in segregation in accordance with the Act and the regulations of the CFTC. Alaron shall not be obligated to pay interest on such cash and securities held for Customers.
Alaron will perform all cashiering functions for the Accounts including, without limitation, receipt and delivery of warehouse receipts or commodities, making and receiving payments for futures contract transactions and transmissions of margin calls.
Alaron will maintain all original Account related documents and agreements, it being understood that copies of all such documents shall be maintained by IB. All account forms shall be deemed to be property of Alaron and will not be assigned to IB unless agreed to in writing.
Alaron will use its best effort to provide in a timely manner to IB a daily account status report that includes trade confirmations, open positions, account balances, commission charges, margin call information, and account equity totals for IB's Customers.
Alaron may from time to time establish margin requirements that exceed the minimum requirements established by various contract markets or exchanges, the clearing organizations affiliated herewith, or such other governmental authority empowered to establish margin requirements. Both Alaron and IB will agree that they will require that customers deposit the higher of the margin requirements determined by either of the various contract markets or exchanges, the clearing organizations affiliated herewith, or such other governmental authority, or Alaron. IB will promptly communicate to its Customer any margin calls initiated by Alaron and use its best efforts to ensure prompt payment of margin requirements. IB will apprise its Customers of the risks of trading futures contracts and of changes of Alaron margin policies.
Alaron shall have the exclusive right to defend, settle or compromise any claim or demand instituted by a Customer or other third party in any judicial, administrative, regulatory, or self-regulatory or other proceeding against Alaron or against Alaron and IB arising out of or in respect to any Customer account or performance by IB or IB's duties hereunder regardless of whether (1) any such claim or demand gives or may give rise to a right of indemnification from IB to Alaron hereunder or (2) Alaron has exercised its right to offset pursuant to paragraph (d) below. IB hereby waives any and all rights IB may have independently to defend, settle or compromise any such of the foregoing claims or demands and agrees to cooperate to the best of its ability with Alaron with respect thereto, but Alaron may, in its sole discretions, authorize and require IB to defend, settle or compromise any such claim or defend as it deems to be appropriate at the cost, expense and liability of the IB.
Alaron represents and warrants as follows:
Alaron is now, and during the term of this Agreement will remain a member in good standing of the NFA and is now, and during the term of this Agreement will remain, duly registered as a futures commission merchant with the CFTC.
