Futures Brokers only One Segregated Account Permitted

The misuse and abuse of client funds in the trading of futures and commodities has spurred the Commodities Futures Exchange Supervisory Board (Bappebti) into action. The issue of the Head of Bappebti Regulation No. 59/BAPPEBTI/Per/7/2006 is designed to ensure that the community in general, and futures trading clients in particular, are protected from brokers inclined to use multiple client accounts to trade in the futures market.

Currently there are only 2 Bappebti accredited banks, Bank Niaga and Bank BCA, therefore a futures broker can only hold 2 segregated accounts, 1 at Bank Niaga and 1 at Bank BCA. Accounts may only be opened and maintained by authorized Directors pursuant to any Deed of Establishment. Any change to the authorized persons with respect to account operation must be notified to Bappebti. The futures brokers are required to sign a power of attorney that allows Bappebti to act on the segregated account. A standard form copy of this power of attorney is attached to the Regulation.