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CFTC Rule 166.3

Requires each Commission registrant, except associated persons without supervisory duties, to diligently supervise the handling of commodity interest accounts and other business activities by its partners, officers, employees, and agents.

Rule Overview

Jurisdiction: United States

Regulator: CFTC

Topic: Supervision, General Requirements

Overview
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Further Reading

The rule mandates that registrants, such as futures commission merchants, introducing brokers, and commodity trading advisors, exercise diligent supervision over their employees and agents to ensure compliance with CFTC regulations and to prevent violations of the Commodity Exchange Act.

This includes supervising the handling of customer accounts, trading activities, and other business operations to prevent fraud, abuse, and other harmful practices.

The rule aims to promote investor protection, maintain market integrity, and ensure that registrants operate in a fair and transparent manner.

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Further Reading

LII 17 CFR § 166.3 - Supervision Go to https://www.law.cornell.edu/cfr/text/17/166.3