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Neal: There are different laws regulating futures in different countries. How is a firm going to "know the customer" or know when the client is trading off their trading profile? |
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Russ: Fortunately, as regulations develop worldwide, foreign regulators have been adopting many of the elements of the U.S. regulatory model. Even in those cases where regulation is not uniform between different international jurisdictions, we have discovered that the law of the jurisdiction where an order was executed will often prevail. Actually, the international laws designed to suppress drug trade have been useful in domesticating judgments in a foreign jurisdiction. |
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I anticipate that as activities on the Internet and other international commerce become more common, then international law will make appropriate adjustments. As an FCM, we recognize that regardless of the customer, there is no substitute for intensive risk management. Regardless of the origin of the customer, the FCM must recognize the age-old rule that every margin check is good except the last one. Therefore, the intensive adherence to risk management procedures will make up for the inability to know everything about the customer. |
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Neal: What criteria should traders use when choosing a computer on-line trading brokerage firm? |
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Russ: The process of choosing a computer on-line system is not vastly different than the process of selecting a broker. Certainly the most important element is the comfort level that the trader has with the system itself. Obviously, the system must be able to handle all of the types of orders that the trader is accustomed to using, and it should access all of the markets the trader trades. Beyond the personal comfort level, there are a number of features some on-line systems have that enhance the trader's ability to trade and protect the trader from potential "computer bugs," while providing speedy order entry and execution. Enhancements include features such as on-line equity runs, |
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