Regulation of Domestic Exchange-Traded Options

The Commodity Futures Trading Commission (“Commission”) has promulgated Commission Regulations 33.7 and 33.8, respectively, which require futures commission merchants (“FCMs”) and introducing brokers (“IBs”): (1) to provide retail (i.e., non-eligible contract participant) customers with, and retain, standard risk disclosure statements concerning the risk of trading certain domestic exchange-traded commodity options; and (2) to retain all related promotional material and the source of authority for information contained therein. These requirements help assure that these customers are not fraudulently induced to invest in these commodity options by persons who misrepresent the risks of such transactions. The recordkeeping requirements assist the Commission and the National Futures Association (“NFA”) in verifying registrants’ compliance with their disclosure obligations and ensuring that related promotional material is not fraudulent or misleading.

The latest form for Regulation of Domestic Exchange-Traded Options expires 2027-12-31 and can be found here.