Compliance with the Commodity Ex- change Act. A banking institution that is engaged in a retail forex business on the effective date of this part and com- plies with paragraph (c) of this section shall be deemed to be acting pursuant to a rule or regulation described in sec- tion 2(c)(2)(E)(ii)(I) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(E)(ii)(I)).
(a) Application of purchases and sales.
(1) Engages in a retail forex trans- action involving the purchase of any currency for the account of any retail forex customer when the account of such retail forex customer at the time of such purchase has an open retail forex transaction for the sale of the same currency;
(2) Engages in a retail forex trans- action involving the sale of any cur- rency for the account of any retail forex customer when the account of such retail forex customer at the time of such sale has an open retail forex transaction for the purchase of the same currency;
(3) Purchases a put or call option in- volving foreign currency for the ac- count of any retail forex customer when the account of such retail forex customer at the time of such purchase has a short put or call option position with the same underlying currency, strike price, and expiration date as that purchased; or
(4) Sells a put or call option involv- ing foreign currency for the account of any retail forex customer when the ac- count of such retail forex customer at the time of such sale has a long put or call option position with the same un- derlying currency, strike price, and ex- piration date as that sold shall:
(i) Immediately apply such purchase or sale against such previously held op- posite transaction with the same cus- tomer; and
(ii) Promptly furnish such retail forex customer with a statement show- ing the financial result of the trans- actions involved and the name of any introducing broker to the account.
(b) Close-out against oldest open posi- tion. In all instances in which the short or long position in a customer’s retail forex account immediately prior to an offsetting purchase or sale is greater than the quantity purchased or sold, the banking institution shall apply such offsetting purchase or sale to the oldest portion of the previously held short or long position.
(c) Transactions to be applied as di- rected by customer. Notwithstanding paragraphs (a) and (b) of this section, the offsetting transaction shall be ap- plied as directed by a retail forex cus- tomer’s specific instructions. These in- structions may not be made by the banking institu...
Compliance with the Commodity Ex- change Act. A national bank that is en- gaged in a retail forex business on July 15, 2011 or September 12, 2011 for Fed- eral savings associations and complies with paragraph (c) of this section will be deemed, during the six-month or ex- tended period described in paragraph
Compliance with the Commodity Ex- change Act. A banking institution that is engaged in a retail forex business on
