Futures – Safety of Funds

The safety of your funds is very important to us. You can be assured that TradeStation does not engage in any proprietary trading. TradeStation Securities operates as a subsidiary of our parent company, TradeStation Group, Inc., which in turn is owned by Monex Group, Inc. Monex Group is among Japan’s leading financial services companies. Both Monex Group and Monex Securities, its main subsidiary, are subject to stringent oversight by Japanese regulatory authorities. TradeStation is subject to stringent U.S. industry regulations and account-protection requirements and has continuous reporting requirements that are subject to regulatory review and regular audits. These regulatory requirements include reserve and segregation requirements for your equities and futures accounts.

Following are our ways of protecting your funds within the TradeStation family of companies:

TradeStation Futures accounts – Held at TradeStation Securities, Inc.
TradeStation Securities Inc., as a Futures Commission Merchant (FCM) that carries customer accounts, is subject to the Customer Protection Rule requirements of the Commodity Futures Trading Commission (CFTC) Rules 1.20 and 30.7. These rules state that the company is required to maintain enough cash and cash equivalents in special reserve accounts, and identified as such, to cover at all times the required segregation reserve amounts. The reserve requirement must be calculated daily and filed electronically through the National Futures Association’s (NFA) web-based WinJammer system. Additionally, the company must also properly segregate these funds from any other proprietary bank account of the company. As of March 31, 2017, TradeStation had $574.4 million segregated in accordance with the above CFTC requirements. For detailed information, please see the Firm’s FCM disclosures

 

Very truly yours,

Peter Korotkiy
President and Chief Operating Officer
TradeStation Securities, Inc.