FMC seeks comments to make e-contract notes a part of KYC
3 Oct 2014 1:31 AM GMT
A contract note is a confirmation of trade in commodity futures completed on a particular day for, and on behalf of, a client. The broker must send the note to the client within 24 hours of the execution of the trade.
‘The commission has received requests from the clients and members that if this (ECN) mandate is made a part of KYC then it will be more convenient and time saving for the new clients. The commission has therefore decided to include the ECN declaration in the Account opening form of KYC,’ the Forward Markets Commission (FMC) said in a circular. Public comments are sought on this proposal by 10 October, it said.
As per the guidelines on the use of ECN, members are allowed to issue contract notes authenticated by digital signatures, provided that the broker has obtained digital signature certificate from the Certifying Authority.
The ECN, however, continues to remain optional for clients. It can be revoked by the client. If the client does not wish to receive the contract note in electronic form, the member should continue to send in physical form.
‘The commission has received requests from the clients and members that if this (ECN) mandate is made a part of KYC then it will be more convenient and time saving for the new clients. The commission has therefore decided to include the ECN declaration in the Account opening form of KYC,’ the Forward Markets Commission (FMC) said in a circular. Public comments are sought on this proposal by 10 October, it said.
As per the guidelines on the use of ECN, members are allowed to issue contract notes authenticated by digital signatures, provided that the broker has obtained digital signature certificate from the Certifying Authority.
The ECN, however, continues to remain optional for clients. It can be revoked by the client. If the client does not wish to receive the contract note in electronic form, the member should continue to send in physical form.
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