Regulation

CFGlobal Regulatory Disclosures

This website can be accessed worldwide. The information provided is however only intended for use by any person in any country where such use would not be contrary to local law or regulation. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local law or regulation to which they are subjected. Please see below the disclosures specific to each CFGlobal Trader entity.

  • CFGlobal Trader, LLC
  • CFGlobal Trader (UK) Ltd

CRYPTOCURRENCY NOTICE: None of the CFGlobal Trader entities trade cryptocurrencies or accept payment in cryptocurrency.

CFGlobal Trader, LLC Disclosures

CFGlobal Trader, LLC is regulated by FINRA and is a member of SIPC.

PRIVACY DISCLOSURE

CFGlobal Trader, L.L.C. and its Affiliates (collectively “CFGlobal” or “we”) understand that our clients’ privacy is important and we are committed to maintaining their confidentiality. The following disclosure explains our policy regarding non-public information and the process we have in place to protect our clients’ privacy and the confidential information we receive from our clients.

We collect non-public information about clients and counterparties from various sources (“Personal Data”), which include the following:

  • Information we receive on applications and other forms (such as name, address, email address, telephone number, Social Security Number, assets and income);
  • Information about our clients' financial transactions with us or others;
  • Information that we received from non-affiliated third parties (such as credit rating agencies) or other entities who may service our clients' accounts from time to time.

We may use our clients’ information in order to operate our business in a prudent manner in accordance with industry standards and applicable law, which may include servicing and maintaining accounts and transactions, offering a broad range of services and products, verifying income and assets, responding to inquiries and requests, preventing fraud, monitoring and archiving communications and verifying our clients’ identity in accordance with the USA PATRIOT Act.

We do not disclose any non-public information to any non-affiliated third parties other than as permitted by law. We may disclose or share non-public information about our clients to our affiliates or third parties involved in servicing our clients’ accounts. We do not otherwise provide information about our clients to outside firms, organizations or individuals except to our attorneys, accountants and auditors and as permitted by law. We will, however, release information about our client if directed to do so by such client or if compelled or required to do so by law or selfregulatory organization (“SRO”) regulations.

We restrict access to our clients’ information to those employees who need to know such information to provide products or services to our clients. We maintain physical, electronic and procedural safeguards to guard and protect all clients’ information from unauthorized access, accidental or intentional manipulation, loss and destruction. Employees who violate these policies are subject to disciplinary action, including termination. Our clients’ information is secure and is not shared with a third party unless such third party is involved in servicing our clients’ relationship with CFGlobal or as required, in limited situations, by law or SRO regulations.

CHOICES AND ACCESS

If you no longer want to receive marketing related emails from us on a going-forward basis, you may opt-out by contacting your client relationship manager, primary point of contact or email: [email protected]. Please note we will still send you important administrative and service or transaction-related messages, which you cannot opt out of.

How individuals can access, change or suppress their Personal Data: If you would like to request a review, correct, update, suppress, restrict or delete Personal Data that you have previously provided to us, or if you would like to request to receive an electronic copy of your Personal Data for purposes of transmitting it to another company (to the extent this right to data portability is provided to you by applicable law), you may contact [email protected]. We will respond to your request consistent with applicable law. For your protection, we may only implement requests with respect to the Personal Data associated with the particular email address that you use to send us your request, and we may need to verify your identity before implementing your request. We will try to comply with your request as soon as reasonably practicable. Please note that we may need to retain certain information for recordkeeping and regulatory purposes. Additional Information for the EEA: You also retain the right to complain to a supervisory authority in the EEA competent for your relevant country or region.

RETENTION PERIOD: We will retain Personal Data for as long as needed or permitted in light of the purpose(s) for which it was obtained. The criteria used to determine our retention periods include: (i) the length of time we have an ongoing relationship with our client and service their account(s); (ii) whether there is a legal obligation to which we are subject; and (iii) whether retention is advisable in light of applicable statutes of limitations, or regulatory investigations.

JURISDICTION AND CROSS-BORDER TRANSFER: Personal Data may be stored and processed in any country where we engage service providers to provide services to our client’s account(s). In certain circumstances, courts, law enforcement agencies, regulatory agencies or security authorities in those other countries may be entitled to access Personal Data. Transfer may also be made pursuant to contracts in your interest or at your request. Additional Information for the EEA: Where personal data is sent to third parties or service providers in countries outside the EEA, we ensure they have adequate level of data protection according to EEA standards.

SENSITIVE INFORMATION: We do not typically collect sensitive Personal Data in connection with the Services. Please do not send us any Personal Data which would be categorized as special data under GDPR (e.g., information related to racial or ethnic origin, political opinions, religion or other beliefs, health, biometrics or genetic characteristics, criminal background or trade union membership).

SUMMARY & DISCLOSURE OF BUSINESS CONTINUITY PLAN

CFGlobal has prepared, and has always maintained a current Business Continuity Plan (“BCP”) in compliance with Financial Industry Regulatory Authority (“FINRA”) Rule 4370. This document outlines our plans to continue our business and meet our existing obligations to our clients in the event of a significant business disruption (“SBD”). Our BCP is summarized below:

CFGlobal’s policy is to respond to a SBD by safeguarding our employees’ lives and our property, making a financial and operational assessment, quickly recovering and resuming operations, protecting all of our books and records and allowing our clients to transact business. We will make every reasonable effort to meet our obligations to our clients at all times. We have in place a BCP that outlines essential parts of our business and discusses in detail:

1) Data back-up and recovery (hard copy and electronic);

2) All mission critical systems;

3) Financial and operational assessments;

4) Alternate communications between our clients and us;

5) Alternate communications between our employees and us;

6) Alternate physical location of our employees;

7) Critical business constituents, banks, and counter-party impact;

8) Regulatory reporting;

9) Communications with regulators; and

10) How CFGlobal shall assure our clients’ prompt access to their funds and securities (if applicable) in the event that we determine that we are unable to continue our business.

During the time that CFGlobal may not be in operation, we shall provide alternative contact information to our clients via our website at www.cfglobaltrader.com in order to effect transactions and for any other required client activity.

Customer Identification Program

To help the U.S. government fight the funding of terrorism and money laundering activities, Federal law requires all U.S. financial institutions, such as CFGlobal, to obtain, verify and record information that identifies each individual or institution that establishes a customer relationship with such financial institutions.

If a client enters into a customer relationship with CFGlobal, which includes opening an account at CFGlobal, we will request certain financial and legal information about such client, including such client’s legal name, tax identification number and address, and the identity of any individuals with any authority or control over such client. We also verify such information to the extent required as follows:

  • Taking steps to check the information provided – to verify that the clients are who they say they are.
  • Consult applicable governmental agency lists of known or suspected criminals, terrorists and terrorist organizations to determine if anyone on any such list is attempting to open or maintain an account.
  • Conduct, in certain instances, additional due diligence when accounts are opened for foreign persons, institutions or other clients.

The U.S. Department of the Treasury, U.S. Securities and Exchange Commission (the “SEC”) and FINRA rules already require clients to provide most of this information.

If a client refuses to provide the information requested or a client’s identity cannot be verified, CFGlobal may not be able to establish or maintain a business relationship with such client. If such client has already established a relationship with CFGlobal, we may have to terminate such relationship. If a client establishes a relationship with CFGlobal and refuses to provide this information, we may be required to report such refusal to appropriate governmental authorities.

Notice: Pursuant to U.S. regulations issued under section 311 of the USA PATRIOT Act, 31 CFR 103.192

We are prohibited from opening or maintaining a correspondent account for, or on behalf of the “Specified Institutions” or Jurisdictions of Primary Money Laundering Concern. (https://www.fincen.gov/resources/statutes-and-regulations/311-specialmeasures ). The regulations also require us to notify you that your correspondent account with our financial institution may not be used to provide the Specified Institutions with access to our financial institution. If we become aware that the Specified Institutions are indirectly using the correspondent account you hold at our financial institution, we will be required to take appropriate steps to prevent such access, including terminating your account.

Monthly / Quarterly Statements

Unless you specifically request monthly/quarterly statements, you will be presumed to have waived any requirement by CFGlobal to provide you with such statements.

Options Disclosure

Options involve risk and are not suitable for all investors. Before trading options read the Characteristics & Risks of Standardized Options booklet.

SEC Rule 606 Order Routing Disclosure

SEC Rule 606 requires all brokers and dealers to make publicly available for each calendar quarter a report on its routing of non-directed orders in national market system securities during that quarter. The reports must identify the significant venues to which clients’ orders were routed for execution during the applicable quarter and disclose certain aspects of the broker or dealer's relationship with such venues.

Furthermore, pursuant to SEC Rule 606(b), at the request of any of our clients, we will provide to such requesting client information regarding the identity of the venue to which such requesting client’s orders were routed for execution in the six (6) months prior to such request, whether such orders were directed orders or nondirected orders and the time of the transactions, if any, that resulted from such orders. Should you require such information, please send an email to [email protected] with a subject line of “Rule 606 Request” and all pertinent information necessary to identify the orders(s) subject to the request.

Customer Complaints

Any customer complaint should be forwarded to CFGlobal’s Chief Compliance Officer via email at [email protected]. Physical mail in relation to these items should be directed to: CFGlobal Trader, L.L.C., Attn: Compliance, 60 East 42nd Street, Suite 1455 New York, NY 10165.

FINRA Broker Check

FINRA Rule 2267 requires CFGlobal to provide information about FINRA’s BrokerCheck program. An investor brochure that includes information describing the BrokerCheck program may be obtained from FINRA. The FINRA website address is FINRA Rule 2267 requires CFGlobal to provide information about FINRA’s BrokerCheck program. An investor brochure that includes information describing the BrokerCheck program may be obtained from FINRA. The FINRA website address is https://www.finra.org/Investors/ToolsCalculators/BrokerCheck/ .

SIPC Disclosure

CFGlobal is a member of the Securities Investor Protection ("SIPC"). Information about account protection coverage provided by SIPC can be obtained by visiting their website at www.sipc.org.

Notice to Canadian Clients Under National Instrument 31-103

Pursuant to the international dealer registration exemption in National Instrument 31-103, the Company is informing you of the following:

- CFGlobal Trader LLC (the “Company”) is not registered in Canada and is advising you, its client, in reliance upon an exemption from the dealer registration requirement under National Instrument 31-103.

- The below list contains CFGT’s agent for service of process for each applicable province:

Borden Ladner Gervais LLP (Laurie J. Cook)

4400 - 40 King Street West
Scotia Plaza
Toronto, Ontario
M5H 3Y4

Borden Ladner Gervais LLP (Jonathan L. Doll)

Centennial Place, East Tower
1900, 520 – 3rd Ave S W
Calgary, AB, Canada
T2P 0R3

- Clients may have some difficulty in enforcing any legal rights they may have against the Company because the Company is resident outside Canada and all or a substantial portion of its assets are situated outside Canada. The Company is not fully subject to the requirements of the Securities Act and the regulations thereunder concerning proficiency, capital, insurance, record keeping, segregation of funds and securities, statements of account and portfolio, and conflicts of interest.

Extended Hours Trading Risk Disclosure

You should consider the following points before engaging in extended hours trading. "Extended hours trading" means trading outside of regular trading hours.” “Regular trading hours” generally means the time between 9:30 a.m. and 4:00 p.m. Eastern Standard Time.

Risk of Lower Liquidity: Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular trading hours. As a result, your order may only be partially executed, or not at all.

Risk of Higher Volatility: Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular trading hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price when engaging in extended hours trading than you would during regular trading hours.

Risk of Changing Prices: The prices of securities traded in extended hours trading may not reflect the prices either at the end of regular Trading hours, or upon the opening the next morning. As a result, you may receive an inferior price when engaging in extended hours trading than you would during regular trading hours.

Risk of Unlinked Markets: Depending on the extended hours trading system or the time of day, the prices displayed on a particular Extended hours trading system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system than you would in another extended hours trading system.

Risk of News Announcements: Normally, issuers make news announcements that may affect the price of their securities after regular trading hours. Similarly, important financial information is frequently announced outside of regular trading hours. In extended hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.

Risk of Wider Spreads: The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended hours trading may result in wider than normal spreads for a particular security.

CFGlobal Trader, (UK) Ltd Disclosures

CFGlobal Trader (UK) Ltd is authorised and regulated by the Financial Conduct Authority, No. 211134. It is a separate but affiliated entity of CFGlobal Trader, LLC.

Order Execution Policy

Introduction
Under the EU Markets in Financial Instruments Directive 2014/65/ EU (MiFID II) and the rules of our regulator, the Financial Conduct Authority [FCA], we are required to have an order execution policy and to take all sufficient steps to obtain the best possible results for our clients when executing or receiving and transmitting client orders.

Scope
Our execution policy is applicable to CFGlobal Trader (UK) Ltd [CFG]’s Professional Clients and Eligible Counterparties as determined in accordance with the client classification rules of the FCA. CFG does not engage in retail client business. CFG’s execution policy is applicable to clients and where we have received an order:

1. To execute on their behalf in respect of financial instruments covered by the Markets in Financial Instruments Directive; or

2. Which we pass on (i.e. transmit) at our discretion to another broker or dealer (“third party”) for execution.

This duty of best execution only applies when executing orders “on a client’s behalf”.

We will be executing orders “on a client’s behalf” where the client legitimately relies on us to protect his or her interests in relation to the pricing or other aspects of the transaction that may be affected by how we execute the order. For example, this will be the case when we:

  • execute an order by dealing as agent;
  • execute an order by dealing as matched principal on behalf of a client; and
  • “work” an order on a client’s behalf.

This policy only applies to transactions in financial instruments falling within the scope of MiFID II. It will therefore cover cash equities and equity-like shares, depositary receipts, debt instruments, funds and derivatives in interest rates, currencies, equity and indices.

Execution Processes

When executing a client order we will seek to obtain the most favourable terms taking into account our regulatory obligations, any specific terms that the client may impose and the sequence that we receive orders. Where there is only one venue and therefore the only pricing consideration is execution time, comparable prices are precluded.

The Quality of Execution

CFG’s policy in providing Best Execution is so far as possible, and subject to the processes set out below, to exercise the same standards and operate the same processes across all the different markets, exchanges and venues on which it executes your orders.

When we execute an order on your behalf, or receive and transmit an order for execution on your behalf, we take all sufficient steps to achieve the best possible result for your order in accordance with MiFID II and our Execution Policy, subject to any specific instructions that you give us, the priorities you place upon us in filling the order, the nature of your order, the market or the source of liquidity (“venue”) in question and any other factors relevant to execution.

The diversity in markets and venues mean that different factors including price, costs, the need for a timely execution, the liquidity of the market, the size of the order, whether it is executed on a regulated market, MTF, OTF or OTC will have to be taken into account when assessing Best Execution. Price is not always the final determinate: Where liquidity is a priority, the best reflected price may be irrelevant. In the absence of express and explicit instructions from you, we will exercise our own discretion in determining the factors that need to be taken into account to provide you with the best possible execution including our understanding and experience of the market in question, our knowledge of your investment process, and the nature of the trading service you require of CFG.

CFG always acts as either agent or matched principal on your behalf and always charges a transparent commission. A “net price” will only be shown when specifically requested by the client. CFG never marks up or marks down the price of a security including OTC markets and never takes positions for ourselves except in the event of an error.

We believe the policy and processes, defined below, provide the best balance across a range of sometimes conflicting factors to achieve the most favourable terms reasonably available on a consistent basis. CFG is, however, not under an obligation to obtain the best possible result for each individual order, and our commitment to provide you with Best Execution does not mean that we owe you any fiduciary or other responsibilities over and above our specific regulatory obligations.

Execution Factors

CFG will take into consideration a range of different factors to determine the manner in which best execution will be executed including, but not limited to:

  • Price
  • Size and nature of the order
  • Likelihood of execution
  • Speed of execution
  • Likelihood of settlement
  • Cost of execution

Execution Criteria

CFG seeks to obtain the most favourable terms reasonably available when executing an order on your behalf. To achieve this CFG will:

  1. 1. Ensure its regulatory obligations are met with regard to client classification;
  2. 2. Carefully consider the elements of order execution including the factors set out above, while taking into account:
    1. 1. The characteristics of the client order
    2. 2. The client’s specific instructions and the sequence with which the order is received
    3. 3. The characteristics of financial instruments that are the subject of that order
    4. 4. The characteristics of the execution venues to which that order can be directed
  3. 3. Employ sophisticated technology for routing, monitoring and executing orders such that the execution outcome is competitive and in the best interests of the client on a consistent basis; and
  4. 4. Regularly review overall execution quality.

Execution Process – Venue Selection

In meeting our obligation to take all sufficient steps to obtain the best possible result when executing your order in transferable securities, we may access various sources of liquidity, including: Regulated Markets. Multilateral Trading Facilities, Systematic Internaliser, Organised Trading Facilities, Market makers and other alternative liquidity providers or non EEA entities performing similar functions.

CFG considers the combined effect of all execution criteria and execution factors referred to above when determining the best venue for execution. Where comparative factors differ across execution venues (e.g. cost of execution, cost of settlement), CFG applies the following priorities to determine the most appropriate venue unless specifically instructed otherwise:

1. Price and size improvement. Dependent on the nature of the order, CFG may be able to obtain a more favourable outcome by accessing alternative pools of liquidity, or aggregating similar orders to realize benefits of scale. CFG will also seek opportunities for client orders to benefit from order size guarantees offered by brokers, exchanges and other market participants;

2. Speed and certainty of execution. Especially during volatile market conditions CFG will focus on execution venues that have a proven track record for providing liquidity and competitive pricing. At all times CFG seeks to provide the fastest execution reasonably possible under the parameters of the client’s instructions; and

3. Overall execution quality and cost. When determining how and where to route or execute an order, CFG draws on extensive experience with various markets, market makers and electronic networks focusing on prompt, reliable and cost effective solutions.

CFG uses automated systems to route and execute some client orders. When a customer order is received it is routed to the Best Execution venue as determined by the criteria above. Certain large orders may require special handling to minimize market impact and be managed by CFG’s trading desk in a manner consistent with CFG’s Best Execution principles. This may include algorithmic trading tools where deemed appropriate by the CFG’s traders’ discretion.

CFG uses Direct Electronic Access (DEA) mechanisms through various investment banks and local brokers and do not maintain direct membership to any exchanges, although our associate firm, CFGlobal Trader LLC, does have membership to ARCA and BATS. In these cases, CFG maintains full control of the order. In other instances, we may transmit the order to another broker as an agent or an introducing broker in which case we monitor the execution closely. We carefully select the brokers we use and satisfy ourselves that they have arrangements in place to enable us to comply with our Best Execution obligation to you. Orders in Asia and the Americas may be passed to an affiliate.

In extreme volume and volatility situations, exchange system constraints require automated trading solutions to be switched off and/or electronic routing to be suspended in favour of manual execution. Such events lead to further execution delay and increased market volatility. Clients should be aware of the following risks associated with volatile markets, especially at or near the close of the standardtrading session: an order may be executed at a substantially different price from the quoted bid or offer, or the last reported sale price at the time of the order entry, or an order may be only partially executed or may be executed in several transactions at different prices; and opening prices may differ substantially from the previous day’s close.

We continuously assess the execution venues available in respect to any product that we trade in order to ensure they continue to allow us to provide you with the best possible results for your orders.

Execution Venues

The CFG execution venues report data is available upon request. The list is not exhaustive but represents those execution venues and third parties that we place significant reliance upon.

We believe that the execution venues detailed are appropriate to providing best execution to you as these venues enable us to obtain, on a consistent basis, the best possible result for the execution of client orders. The charges passed down to the client are consistent with the cost to the firm of dealing with each execution venue so as not to unfairly discriminate against any one execution venue.

Where we are not responsible for the actual execution but instead transmit the order to a third party for execution, we will ensure that the third party is contracted to providing us best execution.

In certain financial instruments, there may only be one execution venue, and in executing a trade in such circumstances we shall presume that we have provided the best possible result in respect of these types of financial instruments.

Fees and Inducements

The fees that CFG charge the client are detailed in the client’s Terms and Conditions and don’t vary regarding execution venue. CFG receive no inducements from any execution venue.

Review & Monitoring

CFG monitors the effectiveness of its order execution arrangements and order execution policy on an on-going basis to identify and, where appropriate, correct any deficiencies. CFG will assess on a regular basis, using the execution venues or the broker to whom we transmit orders for execution. The information from the periodic reports of the top five execution venues and the execution quality report will be taken into account when available. This is to provide for the best possible result for our clients on a consistent basis and to establish whether CFG needs to make changes to its execution arrangements.

As part of the monitoring process, CFG have access to sophisticated Transaction Cost Analysis (TCA) analytics, currently supplied by LiquidMetrix (but this could be subject to change) to aid the reviewing and monitoring process. CFG, if requested, can produce these TCA reports to show the quality of execution and process. Executing brokers used by CFG within the European Economic area (other than EEA member states who have not yet implemented the Best Execution rules of MiFID II) are required to have their own execution arrangements that enable CFG to comply with this policy. CFG will assess and where necessary seek appropriate assurances as to whether these brokers are meeting obligations regarding execution quality. CFG will also assess and seek assurance that brokers in other jurisdictions are consistently providing quality execution.

CFG will review this policy whenever a material event occurs that affects or contributes to the Best Execution outcome. Should no such event occur, the review will take place at least on an annual basis. Our most updated policy is available our website at www.cfglobaltrader.com

Specific Client Instructions

Where you provide CFG with a specific instruction in relation to an order or a part of the order or any particular aspect of it, including the selection of a venue, we will execute the order in accordance with these instructions and in doing so, CFG will be deemed to have taken all sufficient steps to provide the best possible result in respect of that order or aspect of that order. This may prevent us from taking the steps that we have implemented to obtain the best possible result for your order. To the extent that your specific instructions are not comprehensive, we will apply this policy to those aspects not covered by your instructions. The particular execution roles and responsibilities of CFG and its client will depend on the type of execution instruction received. At all times, the client passing the order to CFG retains responsibility for Best Execution to its end client.

Client Limit Orders

The FCA requires unexecuted client limit orders to be made public immediately unless the client expressly instructs otherwise. By consenting to this policy, you are expressly instructing CFG not to make such orders public unless we believe that by doing so, it will be to your advantage.

CFG are required to gain express consent prior to executing an order in an instrument admitted to trading on a Regulated Market, Systematic Internaliser, MTF or OTF outside of such a Regulated Market, Systematic Internaliser, MTF or OTF. Please sign and return a copy of this notice to our compliance department since we will otherwise be prevented from achieving the best possible result where this is achieved by executing your order outside of a Regulated Market, Systematic Internaliser, MTF or OTF.

CONSENT FORM TO CFGLOBAL TRADER (UK) LIMITED ORDER EXECUTION POLICY

We consent to CFGlobal Trader (UK) Limited Order Execution Policy including inter alia:

1. CFGlobal Trader (UK) Limited executing orders outside a Regulated Market, Systematic Internaliser, MTF or OTF; and

2. Unexecuted limit orders not being made public immediately.

FOR AND ON BEHALF OF:
AUTHORISED SIGNATURE(s):
PRINT NAME (s):
DATED:

Please note that we are required to obtain your prior consent to this policy. As a Professional Client or Eligible Counterparty, you will be deemed to provide such consent when you give an order.