7.2.5. Discretionary Accounts
A discretionary account is one in which the member firm has written authority to trade in the customer’s account without permission before each order is placed. An FCM, introducing broker, or commodity trading advisor may exercise discretion over a customer’s commodity futures account only with the customer’s written authorization. Written authorization is not required to exercise discretion strictly with regard to a trade’s time and price. It is required when the firm wishes to make an unauthorized trade.
Each futures trade initiated in a discretionary account will be presumed to have been made under that trading authorization unless otherwise indicated in writing at the time the trade is placed. Each member initiating the trades must adopt and enforce written procedures: