Explanation of CFTC Regulations 1.20 (Segregated) and 30.7 (Secured) Funds

CFTC Regulations 1.20 and 30.7 are designed to protect customer funds through requiring the continuous segregation of customer assets supported by two main reports: (1) segregation statement and (2) secured amount statement (required for FCM’s that carry customer accounts/hold customer funds trading on U.S. or foreign commodity exchanges respectively).

To comply with CFTC regulations, AMP provides each customer a recap of the activity on both CFTC 1.20 US Exchanges (Reg) and CFTC 30.7 Foreign Exchanges (Secured) each day. The amounts, as per CFTC regulations, are recapped and maintained separately on your customer statement identified as “Secured” (30.7) and “Reg” (1.20).

On the money section of your statement, you will see two USD equivalent balances titled as follows: Reg. and Secured. The funds under Reg. are the monies in your account allocated to CTFC section 1.20 -- trading on US Exchanges. The funds under Secured are the monies in your account allocated to CFTC 30.7 – trading on foreign exchanges. AMP will, as a matter of course, move funds in your account between the two sections as required to maintain compliance with the CFTC regulation. These movements will not affect your overall balance, only the allocation of those funds to each regulatory section. In addition, any trading profits or losses will accrue to each section according to the exchanges on which the trades originated. AMP must remain compliant with the above regulations at all times. Your trade-able balance - as far as risk is concerned -- is the total balance across both sections.

Example:

In the below example, the client has USD Equivalent 1,055.74 in Reg. and 1,312.58 in Secured. This simply means the client’s balance is split between CFTC Reg Funds 1.2 and CFTC Reg 30.7 as $1,055.74 and $1,312.58 respectively. The total amount the client has available for trading on any exchange at any time is the summation of the two amounts or $2,368.33. AMP allows the full balance to be traded on any market.