Regulations Governing Managed Futures Enterprises Article 26

When a managed futures enterprise, for purposes of conducting discretionary futures trading on behalf of a principal, opens a futures trading account at a retained futures broker or securities broker, it shall do so in the name of the principal.The managed futures enterprise shall execute futures trades or investment on behalf of the principal through the retained futures broker or securities broker in accordance with the principal's authorization.When a managed futures enterprise allocates discretionary assets to engage in futures trading or futures-related spot commodity investments, if any service fees are returned or other benefits are paid by the futures broker, securities broker, or other trading counterparty, the managed futures enterprise shall apply them as offsets against principal's transaction costs.