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Brokerage Arrangements

Each client must select the Futures Commission Merchant (“FCM”) and, if applicable, the Introducing Broker that will maintain and service the account.  John J. Lothian & Company, Inc. has no requirement that clients must choose the brokerage services of JJLCO’s principal, his IB employer or any of its registered brokers. 

Clients may open an account with JJLCO’s principal or any registered broker of his IB employer, The Price Futures Group, Inc. (www.pricegroup.com) through it clearing relationship with Man Financial, Inc if they so choose.  JJLCO has no authority with respect to the selection of an FCM, or the brokerage arrangements, unless clients chose to deal directly with JJLCO’s principal in his brokerage capacity. Regardless of the brokerage selected and the brokerage arrangements, they must be acceptable to JJLCO.  JJLCO will consider the financial terms the customer has negotiated and operational hurdles presented by each brokerage firm in deciding whether to accept an account.

To provide more efficient execution of clients’ orders, JJLCO may place orders for execution through an executing broker, which will later “give up” such orders to a client’s FCM.  Clients pay all “give up” fees.  

The FCM, and not JJLCO, will have custody of your funds and will furnish you with confirmations of all transactions in your account, monthly statements showing information about trading activities in your account, and other accounts statement customarily furnished by the FCM to its customers.  The furnishing of such reports shall be the sole responsibility of the FCM, and JJLCO, is not required to furnish these reports to you.  You must authorize the FCM to forward to JJLCO copies of all confirmations, statements, or reports sent by the FCM to you.

 You are responsible for negotiating the commissions charged to your account by your broker.  Fees are deducted directly from your brokerage account.  You authorize the FCM to remit directly to JJLCO payment of JJLCO’s incentive and management fees.

 

Send mail to johnlothian@johnlothian.com with questions or comments about this web site.
Last modified: 08/29/08

Disclaimer: The John Lothian Newsletter, Environmental Markets Newsletter, and Frontier Markets Newsletter are products of John J. Lothian & Company, Inc. The opinions expressed in the John Lothian Newsletter and Environmental Markets are strictly those of its editors. It is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.

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