A broker-dealer of commodity futures contracts has been profiting by trading for its own account...

Vendor: FINRA
Product: Series-63
Update on: Jul 25, 2025
Questions: 251

FINRA Series-63 Question Answer

A broker-dealer of commodity futures contracts has been profiting by trading for its own account either before or after executing a client’s trade on the same commodity, depending on which will be most advantageous. Under the Uniform Securities Act, the broker-dealer is guilty of

fraud.

churning.

unauthorized transactions.

nothing. The Uniform Securities Act (USA) deals only with securities, and a commodity futures contract is not a security.