17 C.F.R. § 5.2

Prohibited transactions

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(a) Scope. The provisions of this section shall be applicable to any retail forex transaction.

(b) Fraudulent conduct prohibited. It shall be unlawful for any person, by use of the mails or by any means or instrumentality of interstate commerce, directly or indirectly, in or in connection with any retail forex transaction:

(1) To cheat or defraud or attempt to cheat or defraud any person;

(2) Willfully to make or cause to be made to any person any false report or statement or cause to be entered for any person any false record; or

(3) Willfully to deceive or attempt to deceive any person by any means whatsoever.

(c) Acting as counterparty and exercising discretion prohibited. (1) No person who acts as the counterparty for any retail forex transaction may do so for an account for which the person or any affiliate of the person is authorized (by contract, power of attorney or otherwise) to cause transactions to be effected without the client's specific authorization.

(2) For purposes of this paragraph (c), an “affiliate” of a person means a person controlling, controlled by or under common control with, the first person.

Notes of Decisions

Cited in 18 cases (15 in the last 5 years), 2019–2025 · leading case: Nguyen v. FXCM Inc., 364 F. Supp. 3d 227 (S.D. Ill. 2019).

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Nguyen v. FXCM Inc., 364 F. Supp. 3d 227 (S.D. Ill. 2019). “2(b), 17 C.F.R § 5.2 (b) of the CEA, with Forex Capital, FXCM Holdings, and Niv also violating Section 9(a)(4) of the CEA, 7 U.”

U.S. Commodity Futures Trading Comm'n v. Allied Markets LLC, 371 F. Supp. 3d 1035 (M.D. Fla. 2019). “or in regard to any act of agency performed"); 17 C.F.R. § 5.2 (b) (same, with respect to "retail forex transaction[s]").”

Commodity Futures Trading Comm'n v. Aipu Ltd. (W.D. Wash. 2025). · cites it 10× “1(a)(1)-(3), 17 C.F.R. §§ 5.2 (b)(1), (3), 180.1(a)(1)-(3) (2024).”

Commodity Futures Trading Comm'n v. NOTUS LLC (S.D. Fla. 2024). · cites it 9× “§ 6b(a)(2)(A), (C) and 17 C.F.R. § 5.2 (b)(1), (3) (2023) (Count 1) 34.”

Commodity Futures Trading Comm'n v. Bryant (W.D.N.C. 2024). · cites it 6× “§ 6b(a)(2)(A)–(C) and 17 C.F.R. § 5.2 (b)(1), (3) Under Section 4b(a)(2)(A)–(C), it is unlawful for any person contracting in the sale or swap of commodities: to cheat or defraud or attempt to cheat or defraud the other person; willfully to make or cause to be made to the other…”

Commodity Futures Trading Comm'n v. NOTUS LLC (S.D. Fla. 2023). · cites it 4× “§§ 6b(a)(2)(A), (C), 6d(a)(1), 9(1) and 17 C.F.R. §§ 5.2 (b)(1), (3), and 180.1(a) by accepting and misappropriating customer funds that customers intended to be used for trading in retail foreign 1 At the Status Conference on August 30, 2023, the parties deferred to the Court…”

Commodity Futures Trading Comm'n v. Winston Reed Investments L.L.C. (W.D.N.C. 2021). · cites it 4× “§§ 6b(a)(1)(A)-(C), 6b(a)(2)(A)-(C), 6o(1)(A), (B) (2018); and 17 C.F.R. § 5.2 (b)(1)-(3) (2019), imposes on the WRI a permanent injunction, and orders Defendants, jointly and severally, to pay restitution, and civil monetary penalties.”

Commodity Futures Trading Comm'n v. Fin. Tree (E.D. Cal. 2022). · cites it 3× “§ 14 6b(a)(2)(A)-(C) (2018) and 17 C.F.R. § 5.2 (b) (2021) (Count Two) 15 7 U.”

Commodity Futures Trading Comm'n v. Ramos (N.D. Tex. 2021). · cites it 3× “§ 6b(a)(2)(A)–(C) and 17 C.F.R. § 5.2 (b) Under Section 4b of the Act it is unlawful: [F]or any person, in or in connection with any order to make, or the making of, any contract of sale of any commodity for future delivery, or swap, that is made, or to be made, for or on behalf…”

Commodity Futures Trading Comm'n v. Avila (N.D. Tex. 2024). · cites it 3× “3 17 C.F.R. § 5.2 (b). 4 7 U.S.C. §§ 6m(1), 6o(1)(A)-(B).”

Commodity Futures Trading Comm'n v. Fintech Inv. Grp., Inc. (M.D. Fla. 2021). · cites it 2× “§§ 6b and 9, and their corresponding regulations, 17 C.F.R. §§ 5.2 (b), 180.1, by making material misrepresentations and omissions to potential investors.”

<font Color=\red\">do Not File in This case</font> -transferred to Camden - New Civil Action No. 1:23-cv-11808" (D.N.J. 2023). · cites it 2× “2(b)(1), (3), 17 C.F.R. § 5.2 (b)(1) and (3). The Court finds that the CFTC has met its prima facie burden as to Counts I and II.”

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— 17 C.F.R. § 5.2(b)(1) — 4 cases

Commodity Futures Trading Comm'n v. Winston Reed Investments L.L.C. (W.D.N.C. 2021). “§§ 6b(a)(1)(A)-(C), 6b(a)(2)(A)-(C), 6o(1)(A), (B) (2018); and 17 C.F.R. § 5.2 (b)(1)-(3) (2019), imposes on the WRI a permanent injunction, and orders Defendants, jointly and severally, to pay restitution, and civil monetary penalties.”

U.S. Commodity Futures Trading Comm'n v. Saf. Capital Mgmt., Inc. (E.D.N.Y 2024).

Commodity Futures Trading Comm'n v. NOTUS LLC (S.D. Fla. 2023). “§§ 6b(a)(2)(A), (C), 6d(a)(1), 9(1) and 17 C.F.R. §§ 5.2 (b)(1), (3), and 180.1(a) by accepting and misappropriating customer funds that customers intended to be used for trading in retail foreign 1 At the Status Conference on August 30, 2023, the parties deferred to the Court…”

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