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

The Commodity Futures Trading Commission (CFTC) has rules to protect your money when trading futures. Two important rules are Regulation 1.20 and Regulation 30.7. Here's a simple explanation:

1. Regulation 1.20 (Segregated Funds):

• Purpose: Ensures that money you deposit for trading on U.S. exchanges is kept separate from the company's own funds.

• How It Works: Your funds are placed in special accounts labeled as "Regulated" or "Reg." This means your money is segregated and can't be used for the company's expenses.

2. Regulation 30.7 (Secured Funds):

• Purpose: Protects funds you use for trading on foreign (non-U.S.) exchanges.

• How It Works: Your money for international trading is kept in separate "Secured" accounts. This ensures your funds are designated as "secured" when trading in foreign markets.

On Your Account Statement:

• You'll see two balances:

  • Reg.: Funds for U.S. exchange trading.

  • Secured: Funds for foreign exchange trading.

• Total Balance: You can trade on any market using the combined total of both balances.

Example:

For example, a 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.

• Reg. Balance: $1,055.74

• Secured Balance: $1,312.58

• Total Available for Trading: $2,368.32

AMP Futures manages these balances to comply with CFTC rules, moving funds between Reg. and Secured as needed. This doesn't change your total balance but ensures your money is correctly allocated for U.S. and foreign trading.

Further Explanation

CFTC Regulations 1.20 and 30.7 are designed to protect customer funds by ensuring that they are kept separate from the firm’s own assets at all times. This is done through two key reports:

1. Segregation Statement – Tracks funds used for trading on U.S. exchanges (Regulated 1.20).
2. Secured Amount Statement – Tracks funds used for trading on foreign exchanges (Secured 30.7).

How AMP Follows These Regulations

AMP provides a daily recap of your funds across both U.S. (Regulated 1.20) and foreign (Secured 30.7) exchanges on your account statement.

• Regulated (Reg.) Funds → Used for trading on U.S. exchanges.
• Secured (Sec.) Funds → Used for trading on foreign exchanges.

You’ll see these amounts listed separately on your account statement, under “Reg.” and “Secured.”

How Funds Move Between These Balances

• Automatic Adjustments: AMP may move funds between Reg. and Secured sections as needed to comply with CFTC rules.
• No Impact on Your Total Balance: These adjustments don’t change the total funds in your account—just the allocation between U.S. and foreign markets.
• Profits & Losses Stay Separate: Gains and losses are credited to the section where the trades were made.

Your Tradeable Balance

Your total available balance includes both the Reg. and Secured amounts. This is what determines your risk and trading power.

AMP must always stay compliant with these CFTC regulations, ensuring customer funds are properly allocated and protected.