17 CFR Ch. I (4–1–12 Edition)

§ 165.18 17 CFR Ch. I (4–1–12 Edition)

Commission will not take into account which must be filed in the appropriate dis- any monetary sanctions that the whis- trict court of the United States within two tleblower is ordered to pay, or that is (2) years of the employer’s retaliatory act; ordered against any entity whose li- and potential relief for prevailing whistle- ability is based primarily on conduct blowers, including reinstatement, back pay, that the whistleblower principally di- and compensation for other expenses, including reasonable attorney’s fees. rected, planned, or initiated. Similarly, (a) In General. No employer may discharge, if the Commission determines that a demote, suspend, threaten, harass, directly whistleblower is eligible for an award, or indirectly, or in any other manner dis- any amounts that the whistleblower or criminate against, a whistleblower in the such an entity pay in sanctions as a re- terms and conditions of employment because sult of the action or related actions of any lawful act done by the whistle- will not be included within the calcula- blower— tion of the amounts collected for pur- (1) In providing information to the Com- poses of making payments pursuant to mission in accordance with this part 165; or § 165.14. (2) In assisting in any investigation or judicial or administrative action of the Com- § 165.18 Staff communications with mission based upon or related to such infor- whistleblowers from represented mation. entities. (b) Enforcement—(1) Cause of Action.—An in- If the whistleblower is a whistle- dividual who alleges discharge or other dis- blower who is a director, officer, mem- crimination in violation of section ber, agent, or employee of an entity 23(h)(1)(A) of the Commodity Exchange Act that has counsel, and the whistle- may bring an action under section 23(h)(1)(B) blower has initiated communication of the Commodity Exchange Act in the ap- with the Commission relating to a po- propriate district court of the United States for the relief provided in section 23(h)(1)(C) tential violation of the Commodity Ex- of the Commodity Exchange Act, unless the change Act, the Commission’s staff is individual who is alleging discharge or other authorized to communicate directly discrimination in violation of section with the whistleblower regarding the 23(h)(1)(A) of the Commodity Exchange Act subject of the whistleblower’s commu- is an employee of the Federal Government, nication without seeking the consent in which case the individual shall only bring of the entity’s counsel. an action under section 1221 of title 5, United States Code. § 165.19 Nonenforceability of certain (2) Subpoenas.—A subpoena requiring the provisions waiving rights and rem- attendance of a witness at a trial or hearing edies or requiring arbitration of conducted under section 23(h)(1)(A) of the disputes. Commodity Exchange Act may be served at The rights and remedies provided for any place in the United States. in this part 165 of the Commission’s (3) Statute of Limitations.—An action under regulations may not be waived by any section 23(h)(1)(B) of the Commodity Ex- agreement, policy, form, or condition change Act may not be brought more than 2 of employment, including by a years after the date on which the violation predispute arbitration agreement. No reported in Section 23(h)(1)(A) of the Com- predispute arbitration agreement shall modity Exchange Act is committed. be valid or enforceable if the agree- (c) Relief.—Relief for an individual prevailing in an action brought under section ment requires arbitration of a dispute 23(h)(1)(B) of the Commodity Exchange Act arising under this part. shall include— (1) Reinstatement with the same seniority APPENDIX A TO PART 165—GUIDANCE status that the individual would have had, WITH RESPECT TO THE PROTECTION but for the discrimination; OF WHISTLEBLOWERS AGAINST RE- (2) The amount of back pay otherwise owed TALIATION to the individual, with interest; and Section 23(h)(1) of Commodity Exchange (3) Compensation for any special damages Act prohibits employers from engaging in re- sustained as a result of the discharge or dis- taliation against whistleblowers. This provi- crimination, including litigation costs, ex- sion provides whistleblowers with certain pert witness fees, and reasonable attorney’s protections against retaliation, including: A fees. federal cause of action against the employer,

982 Commodity Futures Trading Commission Pt. 165, App. A

983 Pt. 165, App. A 17 CFR Ch. I (4–1–12 Edition)

984 Commodity Futures Trading Commission Pt. 165, App. A

985 Pt. 165, App. A 17 CFR Ch. I (4–1–12 Edition)

986 Commodity Futures Trading Commission Pt. 165, App. A

987 Pt. 165, App. A 17 CFR Ch. I (4–1–12 Edition)

988 Commodity Futures Trading Commission Pt. 165, App. A

989 Pt. 165, App. A 17 CFR Ch. I (4–1–12 Edition)

PRIVACY ACT STATEMENT to XXXXX.gov; or by facsimile to (202) XXX– XXXX. This notice is given under the Privacy Act • of 1974. The Privacy Act requires that the The whistleblower has the right to sub- Commodity Futures Trading Commission mit information anonymously. • (CFTC or Commission) inform individuals of If the whistleblower is submitting infor- the following when asking for information. mation for the Commission’s whistleblower This form may be used by anyone wishing to award program, the whistleblower must sub- provide the CFTC with information con- mit the whistleblower’s information using cerning a violation of the Commodity Ex- this Form TCR. change Act or the Commission’s regulations. INSTRUCTIONS FOR COMPLETING FORM TCR If the whistleblower is submitting this information for the Commission’s whistleblower Section A: Information About You award program pursuant to Section 23 of the Commodity Exchange Act, the information Questions 1–4: Please provide the following provided will enable the Commission to de- information about yourself: termine the whistleblower’s eligibility for • Last name, first name, and middle ini- payment of an award. This information may tial; be disclosed to Federal, state, local, or for- • Complete address, including city, state eign agencies responsible for investigating, and zip code; prosecuting, enforcing, or implementing • Telephone number and, if available, an laws, rules, or regulations implicated by the alternate number where the whistleblower information consistent with the confiden- can be reached; tiality requirements set forth therein, in- • The whistleblower’s e-mail address (to cluding pursuant to Section 23 of the Com- facilitate communications, we strongly en- modity Exchange Act and Part 165 of the courage the whistleblower to provide the Commission’s regulations thereunder. Fur- whistleblower’s email address); nishing the information is voluntary, but a • The whistleblower’s preferred method of decision not to do so may result in the whis- communication; and tleblower not being eligible for award consid- • The whistleblower’s occupation. eration. Questions concerning this form may be di- Section B: Information about the Whistle- rected to the Commodity Futures Trading blower’s Attorney. Complete this Section Only Commission, Three Lafayette Centre, 1155 if the Whistleblower is Represented by an At- 21st Street, NW., Washington, DC 20581. torney in this Matter Questions 1–4: Provide the following infor- SUBMISSION PROCEDURES mation about the attorney representing the • After completing this Form TCR, please whistleblower in this matter: send it electronically, by mail, e-mail or de- • Attorney’s name; livery to the Commission: electronically via • Firm name; the Commission’s Web site; by mail or deliv- • Complete address, including city, state ery to the Commodity Futures Trading Com- and zip code; mission, Three Lafayette Centre, 1151 21st • Telephone number and fax number; and Street, NW., Washington, DC 20581; by e-mail • E-mail address.

990 Commodity Futures Trading Commission Pt. 165, App. A

Section C: Tell Us About the Individual and/or insider trading; manipulation/attempted ma- Entity The Whistleblower Has a Complaint nipulation of commodity prices; market tim- Against ing; inaccurate quotes/pricing information; program trading; trading suspensions; vola- If the whistleblower’s complaint relates to tility); more than two individuals and/or entities, • Fees/mark-ups/commissions (excessive, the whistleblower may use additional sheets, unnecessary or unearned administrative, if necessary. commission or sales fees; failure to disclose Question 1: Choose one of the following fees; insufficient notice of change in fees; ex- that best describes the individual’s profes- cessive or otherwise improper spreads or sion or entity’s type to which the whistle- fills); blower’s complaint relates: • Sales and advisory practices (background • For Individuals: Accountant, analyst, as- information on past violations/integrity; sociated person, attorney, auditor, broker, breach of fiduciary duty/responsibility; commodity trading advisor, commodity pool churning/excessive trading; cold calling; con- operator, compliance officer, employee, exe- flict of interest; abuse of authority in discre- cuting broker, executive officer or director, tionary trading; failure to respond to client, financial planner, floor broker, floor trader, customer or participant; guarantee against trader, unknown, or other (specify). loss; promise to profit; high pressure sales • For Entities: Bank, commodity trading techniques; instructions by client, customer advisor, commodity pool operator, com- or participant not followed; investment ob- modity pool, futures commission merchant, jectives not followed; solicitation methods hedge fund, introducing broker, major swap (e.g., cold calling, seminars); participant, retail foreign exchange dealer, • Customer accounts (unauthorized trad- swap dealer, unknown, or other (specify). ing); identity theft affecting account; inac- Questions 2–4: For each individual and/or curate valuation of Net Asset Value; or entity, provide the following information, if • Other (analyst complaints; market known: maker activities; employer/employee dis- • Full name; putes; specify other). • Complete address, including city, state Question 3a: State whether the whistle- and zip code; blower or the whistleblower’s counsel has • Telephone number; had any prior communications with the • E-mail address; and CFTC concerning this matter. • Internet address, if applicable. Question 3b: If the answer to question 3a is Section D: Tell Us About the Whistleblower’s yes, provide the name of the CFTC staff Complaint member with whom the whistleblower or the whistleblower’s counsel communicated. Question 1: State the date (mm/dd/yyyy) Question 4a: Indicate whether the whistle- that the alleged conduct began. blower or the whistleblower’s counsel has Question 2: Choose the option that the provided the information the whistleblower whistleblower believes best describes the na- is providing to the CFTC to any other agen- ture of the whistleblower’s complaint. If the cy or organization. whistleblower is alleging more than one vio- Question 4b: If the answer to question 4a is lation, please list all that the whistleblower yes, provide details. believes may apply. Use additional sheets, if Question 4c: Provide the name and contact necessary. information of the point of contact at the • Theft/misappropriation; other agency or organization, if known. • Misrepresentation/omission (i.e., false/ Question 5a: Indicate whether the whistle- misleading marketing/sales literature; inac- blower’s complaint relates to an entity of curate, misleading or non-disclosure by com- which the whistleblower is, or was in the modity pool operator, commodity trading past, an officer, director, counsel, employee, advisor, futures commission merchant, in- consultant, or contractor. troducing broker, retail foreign exchange Question 5b: If the answer to question 5a is dealer, major swap participant, swap dealer, yes, state whether the whistleblower has re- or their associated person(s); false/material ported this violation to the whistleblower’s misstatements in any report or statement); supervisor, compliance office, whistleblower • Ponzi/pyramid scheme; hotline, ombudsman, or any other available • Off-exchange foreign currency, com- mechanism at the entity for reporting viola- modity, or precious metal fraud; tions. • Registration violations (including unreg- Question 5c: If the answer to question 5b is istered commodity pool operator; com- yes, provide details. modity trading advisor; futures commission Question 5d: Provide the date on which the merchant; introducing broker; retail foreign whistleblower took the actions described in exchange dealer; swap dealer; or their associ- questions 5a and 5b. ated person(s)); Question 6a: Indicate whether the whistle- • Trading (after hours trading; algorithmic blower has taken any other action regarding trading; disruptive trading; front running; the whistleblower’s complaint, including

991 Pt. 165, App. A 17 CFR Ch. I (4–1–12 Edition) whether the whistleblower complained to the Section E: Eligibility Requirements Commission, another regulator, a law en- Question 1: State whether the whistle- forcement agency, or any other agency or or- blower is currently, or was at the time the ganization; initiated legal action, mediation whistleblower acquired the original informa- or arbitration, or initiated any other action. tion that the whistleblower is submitting to Question 6b: If the whistleblower answered the Commodity Futures Trading Commis- yes to question 6a, provide details, including sion, a member, officer or employee of the the date on which the whistleblower took Department of Justice, the Commodity Fu- the action(s) described, the name of the per- tures Trading Commission, the Comptroller son or entity to whom the whistleblower di- of the Currency, the Board of Governors of rected any report or complaint and contact the Federal Reserve System, the Federal De- information for the person or entity, if posit Insurance Corporation, the Office known, and the complete case name, case Thrift Supervision, National Credit Union number, and forum of any legal action the Administration, the Securities and Exchange whistleblower has taken. Use additional Commission, a registered entity, a registered sheets, if necessary. futures association, a self-regulatory organi- Question 7a: Choose from the following the zation, or any law enforcement organization. option that the whistleblower believes best Question 2: State whether the whistle- describes the type of financial product or in- blower is providing the information pursuant vestment at issue, if applicable: to a cooperation agreement with the Com- • Commodity futures; modity Futures Trading Commission or with any other agency or organization. • Options on commodity futures; Question 3: State whether the whistle- • Commodity options; blower is providing this information before • Foreign currency transactions; the whistleblower (or anyone representing • Swaps; or you) received any request, inquiry or demand • Other (specify). that relates to the subject matter of the Question 7b: Provide the name of the finan- whistleblower’s submission: (i) From the cial product or investment, if applicable. CFTC; (ii) in connection with an investiga- Question 8: State in detail all the facts per- tion, inspection or examination by any reg- tinent to the alleged violation. Explain why istered entity, registered futures association the whistleblower believes the facts de- or self-regulatory organization; or (iii) in scribed constitute a violation of the Com- connection with an investigation by the Con- modity Exchange Act. Use additional sheets, gress, or any other federal or state author- if necessary. ity. Question 9: Describe all supporting mate- Question 4: State whether the whistleblower is currently a subject or target of a rials in the whistleblower’s possession, cus- criminal investigation, or has the whistle- tody or control, and the availability and lo- blower been convicted of a criminal viola- cation of additional supporting materials not tion, in connection with the information the in the whistleblower’s possession, custody or whistleblower is submitting to the Com- control. Use additional sheets, if necessary. modity Futures Trading Commission. Question 10: Describe how the whistle- Question 5: State whether the whistleblower obtained the information that sup- blower acquired the information the whistle- ports the whistleblower’s allegation. If any blower is providing to the Securities and Ex- information was obtained from an attorney change Commission from any individual de- or in a communication where an attorney scribed in Questions 1 through 5 of this Sec- was present, identify such information with tion. as much particularity as possible. In addi- Question 6: State whether the whistle- tion, if any information was obtained from a blower is currently, or was at the time the public source, identify the source with as whistleblower acquired the original informa- much particularity as possible. Use addi- tion that the whistleblower is submitting to tional sheets, if necessary. the Commodity Futures Trading Commis- Question 11: The whistleblower may use sion, a member, officer, or employee of a for- this space to identify any documents or eign regulatory authority or law enforce- other information in the whistleblower’s ment organization. submission on this Form TCR that the whis- Question 7: Use this space to provide addi- tleblower believes could reasonably be ex- tional details relating to the whistleblower’s pected to reveal the whistleblower’s identity. responses to questions 1 through 6. Use addi- Explain the basis for the whistleblower’s be- tional sheets, if necessary. lief that the whistleblower’s identity would be revealed if the documents or information Section F: Whistleblower’s Declaration were disclosed to a third party. The whistleblower must sign this Declara- Question 12: Provide any additional infor- tion if the whistleblower is submitting this mation the whistleblower thinks may be rel- information pursuant to the Commodity Fu- evant. tures Trading Commission whistleblower

992 Commodity Futures Trading Commission Pt. 165, App. A program and wish to be considered for an Section G: Counsel Certification award. If the whistleblower is submitting the If the whistleblower is submitting this in- whistleblower’s information anonymously, formation pursuant to the Commodity Fu- the whistleblower must still sign this Dec- tures Trading Commission whistleblower laration, and the whistleblower must provide program and is doing so anonymously the whistleblower’s attorney with the origi- through an attorney, the whistleblower’s at- nal of this signed form. torney must sign the Counsel Certification If the whistleblower is not submitting the section. whistleblower’s information pursuant to the If the whistleblower is represented in this Commodity Futures Trading Commission matter but the whistleblower is not submit- whistleblower program, the whistleblower do ting the whistleblower’s information pursu- not need to sign this Declaration. ant to the Commodity Futures Trading Com- mission whistleblower program, the whistleblower’s attorney does not need to sign the Counsel Certification Section.

993 Pt. 165, App. A 17 CFR Ch. I (4–1–12 Edition)

994 Commodity Futures Trading Commission Pt. 165, App. A

995 Pt. 165, App. A 17 CFR Ch. I (4–1–12 Edition)

PRIVACY ACT STATEMENT closed to Federal, state, local, or foreign agencies responsible for investigating, pros- This notice is given under the Privacy Act ecuting, enforcing, or implementing laws, of 1974. The Privacy Act requires that the rules, or regulations implicated by the infor- Commodity Futures Trading Commission mation consistent with the confidentiality (CFTC or Commission) inform individuals of requirements set forth in Section 23 of the the following when asking for information. Commodity Exchange Act and Part 165 of the The information provided will enable the Commission’s Regulations thereunder. Fur- Commission to determine the whistle- nishing the information is voluntary, but a blower’s eligibility for payment of an award decision not to do so may result in the whis- pursuant to Section 23 of the Commodity Ex- tleblower not being eligible for award consid- change Act. This information may be dis- eration.

996 Commodity Futures Trading Commission Pt. 165, App. A

Questions concerning this form may be di- Æ By faxing the signed form to (202) XXX– rected to the Commodity Futures Trading XXXX. Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. INSTRUCTIONS FOR COMPLETING FORM WB– APP GENERAL Section A: Applicant’s Information • This form should be used by persons making a claim for a whistleblower award in Questions 1–3: Provide the following infor- connection with information provided to the mation about yourself: CFTC or to another agency in a related ac- • First and last name, and middle initial, tion. In order to be deemed eligible for an and social security number; award, the whistleblower must meet all the • Complete address, including city, state requirements set forth in Section 23 of the and zip code; Commodities Exchange Act and the rules • Telephone number and, if available, an thereunder. alternate number where the whistleblower • The whistleblower must sign the Form can be reached; and WB–APP as the claimant. If the whistle- • E-mail address. blower provided the whistleblower’s information to the CFTC anonymously, the whistle- Section B: Attorney’s Information blower must now disclose the whistleblower’s identity on this form and the whis- If the whistleblower is represented by an tleblower’s identity must be verified in a attorney in this matter, provide the informa- form and manner that is acceptable to the tion requested. If the whistleblower is not CFTC prior to the payment of any award. represented by an attorney in this matter, Æ If the whistleblower is filing the whistle- leave this Section blank. blower’s claim in connection with informa- Questions 1–4: Provide the following infor- tion that the whistleblower provided to the mation about the attorney representing the CFTC, then the whistleblower’s Form WB– whistleblower in this matter: APP, and any attachments thereto, must be • Attorney’s name; received by the CFTC within ninety (90) days • Firm name; of the date of the Notice of Covered Action • Complete address, including city, state or the date of a final judgment in a related and zip code; action to which the claim relates. • Telephone number and fax number; and Æ If the whistleblower is filing the whistle- • blower’s claim in connection with informa- E-mail address. tion the whistleblower provided to another Section C: Tip/Complaint Details agency in a related action, then the whistleblower’s Form WB–APP, and any attach- Question 1: Indicate the manner in which ments there to, must be received by the the whistleblower’s original information was Commodity Futures Trading Commission as submitted to the CFTC. follows: Question 2a: Include the TCR (Tip, Com- • If a final order imposing monetary sanc- plaint or Referral) number to which this tions has been entered in a related action at claim relates. the time the whistleblower submits the whis- Question 2b: Provide the date on which the tleblower’s claim for an award in connection whistleblower submitted the whistleblower’s with a Commission action, the whistleblower information to the CFTC. must submit the whistleblower’s claim for Question 2c: Provide the name of the indi- an award in that related action on the same vidual(s) or entity(s) to which the whistle- Form WB–APP that the whistleblower uses blower’s tip, complaint, or referral related. for the Commission action. • If a final order imposing monetary sanc- Section D: Notice of Covered Action tions in a related action has not been entered at the time the whistleblower submits The process for making a claim for a whis- the whistleblower’s claim for an award in tleblower award begins with the publication connection with a Commission action, the of a ‘‘Notice of a Covered Action’’ on the whistleblower must submit the whistle- Commission’s Web site. This Notice is pub- blower’s claim on Form WB–APP within lished whenever a judicial or administrative ninety (90) days of the issuance of a final action brought by the Commission results in order imposing sanctions in the related ac- the imposition of monetary sanctions ex- tion. ceeding $1,000,000. The Notice is published on • The whistleblower must submit the whis- the Commission’s Web site subsequent to the tleblower’s Form WB–APP to us in one of the entry of a final judgment or order in the ac- following two ways: tion that by itself, or collectively with other Æ By mailing or delivering the signed form judgments or orders previously entered in to the Commodity Futures Trading Commis- the action, exceeds the $1,000,000 threshold sion, Three Lafayette Centre, 1155 21st required for a whistleblower to be poten- Street, NW., Washington, DC 20581; or tially eligible for an award. The Commission

997 Pt. 165, App. A 17 CFR Ch. I (4–1–12 Edition) will not contact whistleblower claimants di- Question 5: If the whistleblower answered rectly as to Notices of Covered Actions; pro- ‘‘yes’’ to questions 1 though 3 of this Section, spective claimants should monitor the Com- please provide details. mission Web site for such Notices. Question 5a: State whether the whistle- Question 1: Provide the date of the Notice blower provided the information submitted of Covered Action to which this claim re- to the CFTC before the whistleblower (or lates. anyone representing the whistleblower) re- Question 2: Provide the notice number of ceived any request, inquiry or demand that the Notice of Covered Action. relates to the subject matter of the whistle- Question 3a: Provide the case name ref- blower’s submission: (i) From the CFTC; (ii) erenced in Notice of Covered Action. in connection with an investigation, inspec- Question 3b: Provide the case number ref- tion or examination by any registered enti- erenced in Notice of Covered Action. ty, registered futures association or self-regulatory organization; or (iii) in connection Section E: Claims Pertaining to Related Actions with an investigation by the Congress, or any other federal or state authority. Question 1: Provide the name of the agency Question 5b: If the whistleblower answered or organization to which the whistleblower ‘‘yes’’ to questions 5a, please provide details. provided the whistleblower’s information. Use additional sheets if necessary. Question 2: Provide the name and contact Question 6a: State whether the whistle- information for the whistleblower’s point of blower is the subject or target of a criminal contact at the agency or organization, if investigation, or has been convicted of a known. criminal violation, in connection with the Question 3a: Provide the date on which that information upon which the whistleblower’s the whistleblower provided the whistle- application for an award is based. blower’s information to the agency or orga- Question 6b: If the whistleblower answered nization referenced in question E1. ‘‘yes’’ to question 6a, please provide details, Question 3b: Provide the date on which the including the name of the agency or organi- agency or organization referenced in ques- zation that conducted the investigation or tion E1 filed the related action that was initiated the action against you, the name based upon the information the whistle- and telephone number of the whistleblower’s blower provided. point of contact at the agency or organiza- Question 4a: Provide the case name of the tion, if available, and the investigation/case related action. name and number, if applicable. Use addi- Question 4b: Provide the case number of the tional sheets, if necessary. related action. Section G: Entitlement to Award Section F: Eligibility Requirements and Other This section is optional. Use this section to Information explain the basis for the whistleblower’s be- lief that the whistleblower is entitled to an Question 1: State whether the whistle- award in connection with the whistleblower is currently, or was at the time the blower’s submission of information to the whistleblower acquired the original informa- Commission or to another agency in connection that the whistleblower submitted to the tion with a related action. Specifically, ad- CFTC, a member, officer or employee of the dress how the whistleblower believes the Department of Justice, the Commodity Fu- whistleblower voluntarily provided the Com- tures Trading Commission, the Comptroller mission with original information that led to of the Currency, the Board of Governors of the successful enforcement of a judicial or the Federal Reserve System, the Federal De- administrative action filed by the Commis- posit Insurance Corporation, the Office of sion, or a related action. Refer to § 165.11 of Thrift Supervision, the National Credit Part 165 of the Commission’s Regulations for Union Administration, the Securities and further information concerning the relevant Exchange Commission, a registered entity, a award criteria. The whistleblower may use registered futures association, a self-regu- additional sheets, if necessary. latory organization, any law enforcement or- Section 23(c)(1)(B) of the CEA requires the ganization, or a foreign regulatory authority Commission to consider in determining the or law enforcement organization. amount of an award the following factors: (a) Question 2: State whether the whistle- The significance of the information provided blower provided the information submitted by a whistleblower to the success of the to the CFTC pursuant to a cooperation Commission action or related action; (b) the agreement with the CFTC or with any other degree of assistance provided by the whistle- agency or organization. blower and any legal representative of the Question 3: State whether the whistle- whistleblower in the Commission action or blower acquired the information the whistle- related action; (c) the programmatic interest blower provided to the CFTC from any indi- of the Commission in deterring violations of vidual described in Question 1 through 2 of the Commodity Exchange Act (including this Section. Regulations under the Act) by making

998 Commodity Futures Trading Commission § 166.3 awards to whistleblowers who provide infor- ducing broker or any of their associ- mation that leads to the successful enforce- ated persons may directly or indirectly ment of such laws; and (d) whether the award effect a transaction in a commodity in- otherwise enhances the Commission’s ability terest for the account of any customer to enforce the Commodity Exchange Act, protect customers, and encourage the sub- unless before the transaction the cus- mission of high quality information from tomer, or person designated by the cus- whistleblowers. Address these factors in the tomer to control the account: whistleblower’s response as well. (a) With respect to any commodity interest as defined in § 1.3(yy)(1) Section H: Declaration through (3) of this chapter, specifically This section must be signed by the claim- authorized the futures commission ant. merchant, retail foreign exchange dealer, introducing broker or any of their PART 166—CUSTOMER associated persons to effect the trans- PROTECTION RULES action (a transaction is ‘‘specifically authorized’’ if the customer or person Sec. designated by the customer to control 166.1 Definitions. the account specifies— 166.2 Authorization to trade. (1) The precise commodity interest to 166.3 Supervision. be purchased or sold; and 166.4 Branch offices. (2) The exact amount of the com- 166.5 Dispute settlement procedures. modity interest to be purchased or AUTHORITY: 7 U.S.C. 1a, 2, 6b, 6c, 6d, 6g, 6h, sold); or 6k, 6l, 6o, 7, 12a, 21, and 23, as amended by the (b) With respect to any commodity Commodity Futures Modernization Act of interest as defined in § 1.3(yy)(1) or (2) 2000, appendix E of Pub. L. 106–554, 114 Stat. of this chapter, authorized in writing 2763 (2000). the futures commission merchant, in- § 166.1 Definitions. troducing broker or any of their associated persons to effect transactions in (a) The term Commission registrant as commodity interests for the account used in this part means any person who without the customer’s specific author- is registered or required to be reg- ization; Provided, however, That if any istered with the Commission pursuant such futures commission merchant, in- to the Act or any rule, regulation, or troducing broker or any of their associ- order thereunder. ated persons is also authorized to effect (b) [Reserved] transactions in foreign futures or for- (c) The term customer as used in this eign options without the customer’s part means any person trading, intend- specific authorization, such authoriza- ing to trade, or receiving or seeking ad- tion must be expressly documented. vice concerning any commodity interest, including any existing or prospec- [75 FR 55451, Sept. 10, 2010] tive client or subscriber of a commodity trading advisor or existing or § 166.3 Supervision. prospective participant in a com- Each Commission registrant, except modity pool, but the term does not in- an associated person who has no super- clude a person who is acting in the ca- visory duties, must diligently supervise pacity of a Commission registrant with the handling by its partners, officers, respect to the trade. employees and agents (or persons occu- (d) The term commodity account as pying a similar status or performing a used in this part means the account of similar function) of all commodity in- a customer in which any commodity terest accounts carried, operated, ad- interest is, or is intended to be, traded. vised or introduced by the registrant and all other activities of its partners, [43 FR 31886, July 24, 1978, as amended at 46 officers, employees and agents (or per- FR 54535, Nov. 3, 1981; 52 FR 29003, Aug. 5, 1987; 72 FR 63979, Nov. 14, 2007] sons occupying a similar status or performing a similar function) relating to § 166.2 Authorization to trade. its business as a Commission reg- No futures commission merchant, re- istrant. tail foreign exchange dealer, intro- [48 FR 35304, Aug. 3, 1983]

999