Trading OTC FX with Velocity and Velocity Nominees Sample Clauses

Trading OTC FX with Velocity and Velocity Nominees. 12.2.1 When you trade OTC FX contracts with Velocity, Velocity will act as intermediary for a privately negotiated contract VTFX held on your behalf at Velocity Nominees. VTFX may, in turn, enter into “back-to-back” transactions with others which may include its affiliates. A xxxx-up is included by Velocity in the price it quotes to you. The OTC FX contract transactions are not executed on an exchange and are not cleared by a central clearing organization. Therefore, any contract negotiated by Velocity will be an obligation of VTFX and not an obligation of a clearinghouse. For this reason, you will not be afforded the regulatory and financial protections afforded to contracts traded on an exchange. Yourself, Velocity, Velocity Nominees and Velocity are obligated to perform their respective responsibilities and obligation under each transaction in accordance with its terms. The terms of each OTC FX contract are set out in: (i) section 37 of this Velocity Trading Agreement which applies to every transaction intermediated for you by Velocity, and (ii) confirmation which will apply to that particular transaction. Your obligations under the transaction are not transferable to another person. These obligations may only be transferred to another person with Velocity’s express consent. In addition, Velocity is under no obligation to terminate or close out the transaction prior to the expiration date for that transaction. Velocity may, but is not obligated to, quote you a price for an early close out of a contract on request.
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