National Futures Assocation Issues New Rules to Protect Trade Secrets

Posted on November 5, 2007 by Seyfarth Shaw LLP

InstitutionalInvestor.com reported that the National Futures Association (“NFA”) has issued the new rules, “to prevent members from using illegitimate means to gain a competitive advantage if doing so would harm customers.”  InstitutionalInvestor.com noted, click here to view article, that new Compliance Rule 2-4 is directed at activity such as:

  • Misusing customer information, for example by misappropriating social security numbers or deliberately violating the firm's privacy statement.
  • Disclosing customer orders before execution.
  • Obtaining or trying to obtain information disclosing a commodity trading adviser's historical trading positions without the CTA's permission.

 According to the article, Rule 2-4 became effective last month; however, the Securities and Exchange Commission has yet to rule on it.

Tags: , ,
Trackbacks (0) Links to blogs that reference this article Trackback URL
http://www.tradesecretslaw.com/admin/trackback/78932
Comments (0) Read through and enter the discussion with the form at the end
Post A Comment / Question Use this form to add a comment to this entry.







Remember personal info?
Send To A Friend Use this form to send this entry to a friend via email.