7.3.4.4. Bunched Orders
Account managers often need to execute the same transaction at the same time for multiple accounts. Sometimes the trades cannot all be executed at the same time and price, and it is more efficient to enter them all at once as a single trade. This is called a bunched order. When a bunched order is executed, the results are allocated to individual accounts on a post-trade basis by some predetermined allocation method.
To place a bunched order, eligible FCMs, introducing brokers, and CTAs must first be granted written investment discretion by the account participants. Account managers must also agree to disclose the nature of the account methodology upon the customer’s request.
Records of bunched orders must be maintained for each order. Records of a bunched order that is executed must be kept for each customer account to which the bunched order has been allocated.
CFTC Regulation 1.35(b)(5)
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SUMMARY Recordkeeping Requirements |
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Type of Record |
Who Must Maintain |
To Whom Reportable |
When Record Must Be Completed |
Description of Report |
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Monthly statement to customers |
FCMs |
Customers |
In writing by the close of the last business day of the month |
A report of commodity futures and options positions |
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Confirmation statements |
FCMs |
Customers |
The next business day |
Essential information |