# 17 CFR § 5.2: Prohibited transactions

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-17-5.2

## Section

- **Citation:** 17 CFR § 5.2
- **Heading:** Prohibited transactions
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 17—Commodity and Securities Exchanges > CHAPTER I—COMMODITY FUTURES TRADING COMMISSION > PART 5—OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS

## Text

(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.

## Nearby sections

- [17 CFR § 2.1 § 2.1 Description.](https://www.frixlaw.com/law-library/statutes/ecfr-17-2.1.md)
- [17 CFR § 5.2 § 5.2 Prohibited transactions.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.2.md)
- [17 CFR § 5.4 § 5.4 Applicability of part 4 of this chapter to commodity pool operators and commodity trading advisors.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.4.md)
- [17 CFR § 5.5 § 5.5 Distribution of “Risk Disclosure Statement” by retail foreign exchange dealers, futures commission merchants and introducing brokers regarding retail forex transactions.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.5.md)
- [17 CFR § 5.6 § 5.6 Maintenance of minimum financial requirements by retail foreign exchange dealers and futures commission merchants offering or engaging in retail forex transactions.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.6.md)
- [17 CFR § 5.7 § 5.7 Minimum financial requirements for retail foreign exchange dealers and futures commission merchants offering or engaging in retail forex transactions.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.7.md)
- [17 CFR § 5.10 § 5.10 Risk assessment recordkeeping requirements for retail foreign exchange dealers.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.10.md)
- [17 CFR § 5.11 § 5.11 Risk assessment reporting requirements for retail foreign exchange dealers.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.11.md)
- [17 CFR § 5.12 § 5.12 Financial reports of retail foreign exchange dealers.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.12.md)
- [17 CFR § 5.13 § 5.13 Reporting to customers of retail foreign exchange dealers and futures commission merchants; monthly and confirmation statements.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.13.md)
- [17 CFR § 5.17 § 5.17 Authorization to trade.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.17.md)
- [17 CFR § 5.18 § 5.18 Trading and operational standards.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.18.md)
- [17 CFR § 5.19 § 5.19 Pending legal proceedings.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.19.md)
- [17 CFR § 5.20 § 5.20 Special calls for account and transaction information.](https://www.frixlaw.com/law-library/statutes/ecfr-17-5.20.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-17-5.2. Check the current official text before relying on it. Not legal advice.