Disclaimer
- E-Mail and Instant Messenger Confidentiality, Transmission and Privacy Policy
- Communications Disclaimer
- Personal Trading Policy
- Terms of Service
- Risk Disclosure for Futures and Options
- OFAC Disclosure
- Privacy Policy
- Electronic Order Routing Policy
- Customer Complaints Policy
- CME Block Policy
- ICE Block Policy
E-mail Confidentiality Notice
This message is for the named person’s use only. It may contain confidential, proprietary or
legally privileged information. No confidentiality or privilege is waived or lost by any
transmission
errors. If you receive this message in error, please immediately delete it and all copies of it from
your system, destroy any hard copies of it and notify the sender. You must not, directly or
indirectly,
use, disclose, distribute, print, or copy any part of this message if you are not the intended
recipient. ULYSSES COMMODITIES LLC (“Ulysses”) and each of its subsidiaries each reserve
the
right to intercept and monitor all electronic communications through its networks if legally
allowed.
Message transmission is not guaranteed to be secure. This message is for information only and its
accuracy is not guaranteed; it is not an opinion. Price/yield information is indicative and may be
changed without notice.
In order to direct execution orders, Modify or cancel such orders, receive your daily/monthly trade
confirmation (“Customer Information”) via Instant Messenger (“IM”) and or
email,
you (“Customer”) acknowledge, confirm and consent that the following terms shall govern
such
transmissions, and will apply per every given transmission: Customer has requested that Ulysses
Commodities, LLC (“Ulysses”) transmit and communicate market orders, alter/modify or
cancel
such orders in Covered Products and Services and respective Customer Information via the Internet by
IM
and or E-mail transmission. This consent for transmission may also equally apply to daily, monthly
and
annual statements/confirmations/bills, and any other sensitive customer information. Customer
understands that this consent to electronic transmission of orders and statements
is revocable, but will remain in effect until Ulysses receives explicit written notice from customer
to
revoke such consent.
By engaging business w/ Ulysses, and everytime customer engages business with Ulysses, customer has
given her/his firm’s consent that Ulysses transmit such information through E-mail and or Instant
Messenger and/or other means under the following conditions:
- Ulysses makes no warranties or representations, express or implied, regarding the Instant Messenger (“IM”) or e-mail service and shall not be liable for any interruptions, delays, inaccuracies, errors, omissions or any faults in the IM and or e-mail service, however occurring.
- Customer will indemnify and hold Ulysses or any of its subsidiaries or affiliates harmless against any and all claims by parties or third parties in any way connected to or arising out of the use of IM and or e-mail service.
- Performance of IM and/or e-mail service will be excused if prevented by circumstances beyond the reasonable control of Ulysses, including but not limited to: Acts of God or public enemy, fire or other casualty, labor disputes, or failure of communications companies.
- Customer will be responsible for informing Ulysses of changes in its services (Communication Company, IT Providers, etc.) with regard to changes in the e-mail address or IM itself. Failure to communicate new or changed IM and or e-mail addresses will result in failure to receive/transmit communications in this manner, or in exposing third parties to confidential information
- Customer warrants and represents that it fully understands the risks associated with the transmission of information by use of the internet, including but not limited to the tampering with, or unauthorized use of the Customer’s Information by unauthorized third parties and that it will implement the highest standard of care to prevent any unauthorized receipt or use of Customer’s Information.
- Privacy of Instant Messages/E-mails: unless otherwise specified in writing customer information relayed through IM’s/E-mail and or other means will be confidentially and strictly held with Ulysses. It will not be forwarded, distributed, or otherwise copied and pasted to other 3rd parties unless required to do so by law to comply with regulatory concerns. Other customers who copy/paste, distribute, present, discuss or otherwise pass on information from Ulysses to other 3rd parties, are exposing themselves to potential liquidated damages to be determined by the severity and confidentiality of the information transmitted. Customer/s hereby absolve and indemnify any liability on Ulysses as a result of dealing with a negligent 3rd party customer that has transmitted their information and violated this policy, even if such information was passed on by Ulysses. While Ulysses will employ reasonable means to care for customer confidentiality given the difficult constraints and rapid fire transmission of electronic transmission, such indemnification shall be absolute for Ulysses.
- All information above shall complement and supplanted to the Privacy Policy of the firm. When in conflict the version provider stricter indemnification and protection of liability on Ulysses shall prevail.
- Ulysses reserves the right to modify or discontinue this service at any time without notice.
Communications Disclaimer
This communication and all information contained in this communication, including attached documents, is for information purposes only. The information transmitted in this channel may include, but not be limited to, market prices and levels and market commentary. The information being transmitted is confidential and is intended for the recipient and shall not be re-transmitted without the consent of the sender. Use of this information other that the intended recipient is unauthorized, and any disclosure, copying or redistribution is prohibited. If you receive this message in error, please immediately delete all copies of it and notify the sender.
Ulysses Commodities, LLC does not guarantee that such information is timely, current, accurate, or complete and it should not be relied upon as such. Information being provided reflects Ulysses Commodities, LLC’s good faith judgment at a specific time and is subject to change without notice very quickly. Trading advice, quotes, and price levels, if any, given in this communication is based on information taken from trades and statistical services and other sources that Ulysses Commodities, LLC believes are reliable. There is no guarantee that the information provided by Ulysses Commodities, LLC will result in profitable trades or offer the intended hedge. The information in this communication may be legally privileged and is the intellectual property of Ulysses Commodities, LLC. Opinions expressed herein are statements only of the date indicated and are not given or endorsed by Ulysses Commodities, LLC unless otherwise indicated by an authorized representative. The Information is directed to Ulysses Commodities, LLC’s professional customers (ECP’s only) and is not intended for retail clients (as the term is defined by the rules and regulations of the Commodity Futures Trading Commission and National Futures Association).
Due to the electronic nature of electronic communication, there is a risk that the information contained in this communication has been modified. Consequently, Ulysses Commodities, LLC cannot guarantee that messages or attachments are virus free, do not contain malicious code or are compatible with your electronic systems and Ulysses Commodities, LLC does not accept liability in respect of viruses, malicious code or any related problems that you may experience.
The information being transmitted in this communication is not, and should not be construed as, an offer, bid, recommendation, or solicitation in relation to any financial instrument or investment or to participate in any trading strategy. All representations and warranties are expressly disclaimed.
Ulysses Commodities, LLC is regulated by the Commodity Futures Trading Commission and National Futures Association. For further regulatory information, please access National Futures Association’s BASIC system at www.nfa.futures.org.
PERSONAL TRADING POLICY
Discretionary Accounts
In order to exercise discretion over a futures customer’s account, NFA requires a person to
be:
- Registered as a CTA or
- Registered as an AP for a minimum of two years and to have two years’ working experience in that capacity.
A customer must provide a specific written authorization (namely power of attorney) to open a
discretionary
account. NFA Rule 2-8 also requires a firm to have written review procedures for discretionary
accounts and that a
supervisory employee review discretionary trading activity on a regular basis.
It is Ulysses Commodities policy not to undertake any accounts on a discretionary basis at this
time.
Proprietary Accounts
Ulysses Commodities LLC is an agency execution brokerage, as such we maintain the highest fiduciary
duty to our
clients, and we do not engage in any proprietary trading of any sorts with the clients. If in the
future
this policy shall
change, all customers must receive a written acknowledgement of such material change in the business
model.
Bunched Order Allocation
The Commission has proposed amending Regulation 1.35(a-1)(5) to provide procedures for end-of-day
allocation
of bunched orders for both cleared and uncleared products. In addition, under the proposed
amendments,
Futures
Commission Merchants and Introducing Brokers would be able to serve as eligible account managers for
bunched
orders provided that, consistent with Regulations 155.3 and 155.4, they do not bunch proprietary
orders with customer orders.
Employee Trading Personal Account
Ulysses Commodities Operating Agreement Article 5, Section 5.6a(i) discusses the firm’s
“Covered
Products and Services” this shall be defined as exchange cleared and listed commodities
instruments for both futures and options contracts.
Ulysses Commodities LLC is strictly an execution agency brokerage desk generating revenue based on
commission income;
as such our fiduciary duty is first and foremost to our institutional clientele. As such it is
against
firm policy to day trade such Covered Products and Services.
This extends to all exchange (ICE and or NYMEX) cleared futures and or options contracts. AP’s
and
or Principles that are found trading against clients, or in Covered Products and Services can be
terminated for cause immediately.
Exceptions apply to the following products:
- Peripheral financial instruments in which AP or Principles cannot affect liquidity, or price of Covered Products and Services are acceptable. Examples include: Stocks of commodities companies, commodity ETF’s, Bond of oil producers, MLP’s, and so forth.
- Disclosure/Audited records – all AP’s and principles must, upon request of either: supervisor, client, or regulatory agency, produce trading records.
TERMS OF SERVICE
In consideration of you ("Customer") opening an account and engaging Ulysses Commodities
LLC ("Ulysses")
to act as execution agency brokerage on your behalf, for the purchase or sale of commodity futures,
commodity options, forward contracts, physical or cash commodities, and exchange for physical ("EFP")
or Covered Products and Services transactions (Collectively "Commodity Contracts"),
Customer
consents and confirms that the following terms will legally bound such relationship, and confers
consent
per every transaction engaged with Ulysses:
I. Customer acknowledges the following:
- The purchase and sale of Commodity Contracts is speculative, involves a high degree of risk and is suitable only for persons who can assume the risk of loss in excess of their margin deposits or of their entire option premium. Customer understands that because of the low margin normally required in Commodity Contract trading, price changes in Commodity Contracts may result in significant Customer losses, which losses may substantially exceed Customer’s margin deposits and any other deposits Customer may make. Customer also acknowledges that Customer has received, has read and understands this agreement risk disclosures.
- Customer understands that there are no guarantees of profit or guarantees against loss in Commodity Contract trading. Customer has received no such guarantees from Ulysses or from any of its representatives. Customer acknowledges its awareness of the risks inherent in Commodity Contract trading and is financially able to bear such risks and withstand any losses incurred.
- Customer authorizes Ulysses to execute such transactions for the Customer’s account, to act as counterparty to Commodity Contracts and to exercise commodity options for Customer’s account in accordance with Customer’s oral or written instructions. Ulysses shall have the right to refuse to accept any of Customer’s orders. Ulysses shall also have the right to tape record all telephone conversations with Customer.
- Customer understands that Ulysses acts solely as an execution brokerage desk, and does not take any principle positions, unless otherwise notified in writing. Furthermore, it is firm policy to disclose any positions brokers maintain in their individual Personal Trading Accounts in Covered Products and Services as defined under firm’s policies, and may change from time to time
- Ulysses shall not be responsible to Customer in any case for an approved third party approved by the customer for error or negligence on the third’s party’s part or for anyone who is not an employees of Ulysses.
- Customer acknowledges that the execution of futures may imply anticipation of making or accepting delivery. Customer hereby authorizes Ulysses to take all action deemed necessary by Ulysses in the event Ulysses might be faced with taking physical delivery for customer’s orders and customer hereby agrees to indemnify Ulysses from all costs associated therewith. Ulysses may, in its sole discretion, take necessary action to prevent such occurances.
- Customer acknowledges the right of Ulysses to limit execution without notice to the Customer, if Ulysses is so compelled by any regulatory agency due to open positions outnumbering open position limits mandating by the CFTC, as specificed in 1.73 or any other DCM or regulatory limitations adn regulations.
II. Customer shall deposit with their Prime Broker / FCM / Clearing House the applicable initial and
maintenance margin requirements; pay interest, commission charges in effect from time to time,
(whichcommissions may be shared by more than one of Customer’s agents) and other fees and
charges,
as well ascosts to Ulysses occasioned by carrying the account of the Customer. Customer will pay any
commissionsattributable to Ulysses either directly or through their clearing house/FCM/Prime Broker
and
pay the interest and service charges on any balances overdue by more than 30 days, as per invoices
as
well as costs of attorney’s fees incurred in collecting any such deficit or defending claims
brought by Customer in which Ulysses is the prevailing party. Fees and charges, in addition to
commissions and interest, may include, butare not limited to rollover fees and charges, currency
conversion fees and charges, account transfer fees andcharges, and any fees and charges imposed by
any
interbank agency, bank, contract market or other regulatory or self-regulatory organization. Ulysses
reserves the right to change its fee structure at any time.
III. Customer understands and acknowledges that Ulysses acts as execution agent for all transactions
which are executed on commodity futures exchanges and or bilaterally over the counter. Customer
acknowledges that in circustances where Ulysses unitentionally ends up the guarantor of the
financial
responsibility of the Customer or vicariously liable for customer’s actions that Ulysses has
full
authority and consent of customer to protect, prevent and take necessary action to absolve itself of
any
financial liabilities or otherwise. Therefore, Customer agrees to hold Ulysses harmless with respect
to
any and all such related actions.
IV. If Customer directs Ulysses to enter into any Commodity Contracts denominated in a foreign
currency,
than any profit or loss arising as a result of a fluctuation in the exchange rate affecting such
currency will be entirely for Customer’s account and risk. Ulysses acts solely as an execution
desk.
V. Customer acknowledges that:
- any market recommendations and information communicated to Customer by Ulysses do not constitute anoffer to sell, or the solicitation of an offer to buy any commodity, or any commodity futures contract;
- such recommendations and information, although based upon information obtained from sources believedby Ulysses to be reliable, may be incomplete and may not be verified
- Ulysses makes no representation, warranty or guarantee as to, and shall not be responsible for, the accuracyor completeness of any information or trading recommendation furnished to Customer. Customerunderstands that Ulysses and/or its officers, directors, affiliates, stockholders or representatives may have aposition or positions in and may intend to buy or sell commodities or commodity futures contracts, whichare the subject of market recommendations furnished to Customer, and that the position or positions of Ulysses or any such officer, director, affiliate, stockholder, or representative may or may not be consistent with the recommendations furnished to Customer by Ulysses. Customer is also aware of Personal Trading Disclosure and policy which may change from time to time.
V. All transactions by Ulysses on Customer’s behalf shall be subject to the applicable
constitution, rules, regulations, customs, usages, rulings, and interpretations of the exchanges or
markets on which such transactions are executed by Ulysses or its agents for Customer’s
account
(such as the Chicago Mercantile Exchange and its affiliated clearing house, the National Futures
Association and to all applicable governmental acts and statutes such as the Commodity Exchange Act
or
the Commodity Futures Trading Commission Act of 1974) and to rules and regulations made thereunder.
Ulysses shall not be liable to Customer as a result of any action taken by Ulysses, or its agents,
to
comply with any such constitution, rule, regulation, custom, usage, ruling, interpretation, act or
statue. If Customer is subject to regulation by any regulatory body, Customer agrees that Ulysses
has no
duty to ascertain or ensure that Customer is in compliance with any governing statutes or rules.
VI. Customer acknowledges and agrees that Ulysses shall not be responsible to Customer for any
losses
resulting from conduct or advice (including but not limited to errors and negligence) on the part of
anybroker/dealer, futures commission merchant, independent introducing broker, commodity trading
advisor,or any other person or entity introducing Customer to Ulysses or having trading authority
over
the accountof Customer at Ulysses. Customer specifically agrees that Ulysses shall have no
obligation to
supervise the activities of any such person or entity and Customer will indemnify Ulysses and hold
Ulysses harmless fromand against all losses, liabilities, and damages (including attorney’s
fees)
incurred by Ulysses as a result of anyactions taken or not taken by such person or entity.
VII. Customer authorizes Ulysses to verify the information provided by the customer as Ulysses shall
deem appropriate from time to time and as mandated by the NFA and CFTC regulations. Customer
understandsthat an investigation may be made pertaining to Customer’s credit standing and that
Customer may make awritten request within a reasonable period of time for complete and accurate
disclosure of its nature andscope.
VIII. Ulysses shall not be responsible for delays in the execution of orders due to breakdown or
failure
of transmission, or communication facilities, or to any other cause beyond Ulysses’ control.
Since
Ulysses doesnot control signal power, its reception or routing via internet, configuration of
Customer’s
equipment orreliability of its connection, Ulysses shall not be liable for any claims, losses,
damages,
costs or expenses,including attorneys’ fees, caused, directly or indirectly, by a break-down
or
failure of any transmission or communication system or computer facility or trading software,
whether
belonging to Ulysses, Customer,any market, or any settlement or clearing system when Customer trades
on-line (via internet, IM, orotherwise electronically).
IX. Confirmation of trades, contracts, statements of account, and any other notices transmitted by
Ulysses toCustomer shall be transmitted to either the email address or the physical address shown in
and
to theattention of the person (s) named in the "Customer Account Documentation" and shall be
conclusivelydeemed accurate and complete, and Customer waives and releases any claim relating
thereto,
if not objected
to, in writing, prior to the opening of trading on the contract market on which such transaction
occurred on the next business day following the day on which such communication was first received.
The
price at which an order is executed shall be binding notwithstanding the fact an erroneous report is
made. An order which was executed but in error reported as not executed shall be binding. Customer
shall
direct all objections to Ulysses Commodities LLC 3118 Richmond Avenue; Suite 250, Houston, TX
77098
X. Customers not domiciled in the United States (Foreign Accounts) may be asked to comply with
requests
for special information by Ulysses as required by any governmental unit or regulatory agency. This
includes, but is not limited to, special calls for information and or OFAC regulations. In the event
of
a special call for information, Ulysses shall be required to obtain the information set forth by any
governmental unit or regulatory agency requesting information. In addition, failure to respond to a
special call for information may cause transactions to be restricted for Customer.
XI. The rights and remedies conferred upon the parties hereto shall be cumulative, and the exercise
or
waiver of any thereof shall not preclude or inhibit the exercise of additional rights or
remedies.
XII. Subject to the Arbitration Agreement between Ulysses and Customer, Customer agrees that any
civil
action or other legal proceeding between Ulysses or its employees, agents, representatives,
affiliated
brokers and/orassociated persons, on the one hand, and Customer, on the other hand, arising out of
or
relating to thisAgreement, transactions hereunder, or Customer’s account shall be brought,
heard
and resolved in theCourts of Texas and Customer waives the right to have such proceeding transferred
to
any other location. In addition, Customer waives the right to trial by jury in any such action or
proceeding. Any such action orproceeding shall be governed by the law of the State of Texas. No
action,
including arbitration, andregardless of form arising out of or relating to this Agreement,
transactions
hereunder, or Customer’s account may be brought by Customer more than one year after the cause
of
action arose (regardless of thedate of discovery of the alleged injury), provided, however, that any
action brought under the provisions ofSection 14 of the Commodity Exchange Act may be brought at any
time within two years after the cause ofaction accrues.
XIII. Customer represents that (1) he/she is (or, if Customer is a corporation, that each officer
and
director is, if Customer is a partnership, that each partner is) an adult of sound mind and is under
no
legal disability whichwould prevent him/her from trading in commodities, commodity futures
contracts,
options contracts,forward contracts, foreign exchange or other physical or cash contracts therein or
entering into thisAgreement; (2) he/she is (or its officers and directors or its partners are)
authorized to enter into this Agreement.
XIV. Customer warrants the accuracy of the information contained in the account application to be
complete, true and correct and agrees that Customer will promptly notify Ulysses of any material
change
in theinformation. Customer further warrants that no one except Customer has an interest in the
account
and thatCustomer has full power and authority to enter into this Agreement and to engage in the
transactions of thekind contemplated herein.
XV. Customer agrees to pay to Ulysses the commissions, fees and other charges as are in effect from
time
to time, and Customer hereby authorizes Ulysses to request such amount of any such commissions, fees
andcharges from Customer’s Account as such commissions, fees and charges are incurred. Ulysses
may
providenotice electronically or otherwise of any changes in its amount and type of commissions, fees
and
othercharges, and the effective date of such charges. If Customer is introduced to Ulysses by
another
party, such other party may receive a portion of any commission paid to Ulysses by Customer.
XVI. This Agreement, including all authorizations, shall inure to the benefit of Ulysses, its
successors
and assignsand shall be binding upon Customer and Customer’s personal representatives,
executors,
trustees,administrators, agents, successors, and assigns. In the event of (a) the death or judicial
declaration ofincompetence of Customer; (b) the filing of a petition in bankruptcy, or a petition
for
the appointment of areceiver, or the institution of any insolvency or similar proceeding by or
against
Customer; (c) the filing ofan attachment against any of Customer’s accounts carried by
Ulysses;
(d)Customer’s failure to provideUlysses any information requested pursuant to this agreement;
or
(f) any other circumstances ordevelopments that Ulysses deems appropriate for its protection, and in
Ulysses’ sole discretion, it may takeone or more, or any portion of, the following actions:
(1)
satisfy any obligation Customer may have toUlysses, either directly or by way of guaranty or
suretyship,
out of any Customer’s funds or property in itscustody or control or in the custody or control
of
Ulysses; (2) cancel any or all outstanding orders orCommodity Contracts, or any other commitments
made
with Customer. Any of the above actions may betaken without demand for margin or additional margin,
without prior notice of sale or purchase or othernotice to Customer, Customer’s personal
representatives, heirs, executors, administrators, trustees, legateesor assigns and regardless of
whether the ownership interest shall be solely Customers or held jointly withothers.
XVII. Customer shall indemnify, defend and hold Ulysses, its affiliates, directors, officers,
stockholders, employees, agents, successors and assigns harmless from and against any and all
liabilities, claims, losses,damages, costs and expenses, including reasonable attorneys’ fees
and
expenses, incurred by Ulysses, arisingfrom (a) Customer’s failure to fully and timely perform
its
obligations hereunder, or (b) any of Customer’srepresentations and warranties made being
untrue or
incorrect. Customer also agrees to pay promptly to Ulysses any and all claims, losses, damages,
costs
and expenses, including reasonable attorneys’ fees,incurred by Ulysses in enforcement of any
of
the provisions of this Agreement and any of the transactionscontemplated hereunder, the collection
of
any amounts due hereunder, and the defense of any action orproceeding, including an arbitration
proceeding, brought by Customer against Ulysses in which Ulysses isthe substantially prevailing
party.
XVIII. Limitation of Liability: In no event shall Ulysses be liable to customer or any person for
indirect, incidental, special, punitive or consequential damages of any kind or nature whatsoever,
whether arising under contract,warranty, or tort (including negligence or strict liability) or any
other
theory of liability even if the possibilityof such damages were disclosed to Ulysses or could have
been
reasonably foreseen by Ulysses. Thelimitation of liability reflects the allocation of risk between
the
parties. The limitation specified herein will survive and apply even if any limited remedy specified
in
this Agreement is found to have failed of itessential purpose.
XX. Customer agrees and acknowledges that: (a) This IB Customer Agreement supplements the FCM
Customer
Agreement in so far as it sets forth the rights and obligations between Ulysses as introducing
broker
andCustomer, but is not to be construed as amending, supplementing or superseding the FCM
CustomerAgreement as between FCM and Customer. (b) Customer agrees that it will comply with the
terms of
theFCM Customer Agreement and that any breach by Customer of such terms constitutes a breach
byCustomer
of this IB Customer Agreement. (c) Customer further agrees that Ulysses may, to the extent permitted
by
Applicable Law (as defined in the FCM, Clearing House, or Prime Broker, CustomerAgreement), take any
action under the FCM Customer Agreement that may take, including withoutlimitation making demand for
margin, brokerage commissions or other payments, exercising any of theremedies or limiting scope of
service, and that Customer is bound by the terms of the FCM CustomerAgreement in respect of such
actions
the same as if such actions were taken by FCM.
XXI. Customer represents and warrants that: (a)Customer has full right, power and authority to enter
into this IB Customer Agreement and the FCM Customer Agreement, and the person or persons executing
suchAgreements on behalf of Customer is (are) authorized to do so; (b) The Agreements are binding
onCustomer and enforceable against Customer in accordance with their respective terms; (c) Customer
maylawfully establish and open the Account with FCM for the purpose of effecting purchases and sales
ofContracts through Ulysses as introducing broker and FCM as futures commission merchant; (d)
transactions entered into pursuant to the Agreements will not violate any Applicable Law, other law
to
which Customeris subject or any agreement to which Customer is subject or a party; and (e) all
information provided byCustomer in the Commodity Futures Account Application preceding the FCM
Customer
Agreement("Application") is true and correct and Customer shall immediately (and in no
event
later than within onebusiness day) notify Ulysses of any change in such information.
XXII. Customer understands that and acknowledges that to conform and comply with National Futures
Association’s record keeping regulation as per CFTC regulations a detailed record trail of all
trades will bekept for a period of 5 (five) years.
RISK DISCLOSURE STATEMENT FOR FUTURES AND OPTIONS
This statement is required to be furnished to you in accordance with Rule 1.55, and Rule 33.7 of the
Commodity Futures Trading Act. This brief statement does not disclose all of the risks and other
significant aspects of trading in futures and options. In light of the risks, you should undertake
such
transactions only if you understand the nature of the contracts (and contractual relationships) into
which you are entering and the extent of your exposure to risk. Trading in futures and options is
not
suitable for many members of the public. You should carefully consider whether trading is
appropriate
for you in light of your experience, objectives, financial resources and other relevant
circumstances.
I. Effect of ‘Leverage’ or ‘Gearing’
Transactions in futures carry a high degree of risk. The amount of initial margin is small relative
to
the value of the futures contract so that transactions are ‘leveraged’ or ‘geared.’
A relatively small market movement will have a proportionately larger impact on the funds you have
deposited or will have to deposit; this may work against you as well as for you. You may sustain a
total
loss of initial margin funds and any additional funds deposited with the firm to maintain your
position.
If the market moves against your position or margin levels are increased, you may be called upon to
pay
substantial additional funds on short notice to maintain your position. If you fail to comply with a
request for additional funds within the time prescribed, your position may be liquidated at a loss
and
you will be liable for any resulting deficit.
II. Risk-reducing Orders or Strategies
The placing of certain orders (e.g., ‘stop-loss’ orders, where permitted under local
law, or
‘stop-limit’ orders) which are intended to limit losses to certain amounts may not be
effective because market conditions may make it impossible to execute such orders. Strategies using
combinations of positions, such as ‘spread’ and ‘straddle’ positions may be
as
risky as taking simple ‘long’ or ‘short’ positions.
OPTIONS
III. Variable Degree of Risk
Transactions in options carry a high degree of risk. Purchasers and sellers of options should
familiarize themselves with the type of option (i.e. put or call) which they contemplate trading and
the
associated risks. You should calculate the extent to which the value of the options must increase
for
your position to become profitable, taking into account the premium and all transaction costs. The
purchaser of options may offset or exercise the options or allow the options to expire. The exercise
of
an option results either in a cash settlement or in the purchaser acquiring or delivering the
underlying
interest. If the option is on a future, the purchaser will acquire a futures position with
associated
liabilities for margin (see the section on Futures above). If the purchased options expire
worthless,
you will suffer a total loss of your investment which will consist of the option premium plus
transaction costs. If you are contemplating purchasing deep out-of-the money options, you should be
aware that the chance of such options becoming profitable ordinarily is remote. Selling (‘writing’
or ‘granting’) an option generally entails considerably greater risk than purchasing
options. Although the premium received by the seller is fixed, the seller may sustain a loss well in
excess of that amount. The seller will be liable for additional margin to maintain the position if
the
market moves unfavorably. The seller will also be exposed to the risk of the purchaser exercising
the
option and the seller will be obligated to either settle the option in cash or to acquire or deliver
the
underlying interest. If the option is on a future, the seller will acquire a position in a future
with
associated liabilities for margin (see the section on Futures above). If the option is ‘covered’
by the seller holding a corresponding position in the underlying interest or a future or another
option,
the risk may be reduced. If the option is not covered, the risk of loss can be "unlimited."
Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the
purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is
still subject to the risk of losing the premium and transaction costs. When the option is exercised
or
expires, the purchaser is responsible for any unpaid premium outstanding at that time.
ADDITIONAL RISKS COMMON TO FUTURES AND OPTIONS
IV. Terms and Conditions of Contracts
You should ask the firm with which you deal about the terms and conditions of the specific futures
or
options which you are trading and associated obligations (e.g. the circumstances under which you may
become obligated to make or take delivery of the underlying interest of a futures contract and, in
respect of options, expiration dates and restrictions on the time for exercise). Under certain
circumstances the specifications of outstanding contracts (including the exercise price of an
option)
may be modified by the exchange or clearing house to reflect changes in the underlying interest.
V. Suspension or Restriction of Trading and Pricing Relationships
Market conditions (e.g., illiquidity) and/or the operation of the rules of certain markets (e.g.,
the
suspension of trading in any contract or contract month because of price limits or ‘circuit
breakers’) may increase the risk of loss by making it difficult or impossible to effect
transactions or liquidate/offset positions. If you have sold options, this may increase the risk of
loss. Further, normal pricing relationships between the underlying interest and the future, and the
underlying interest and the option may not exist. This can occur when, for example, the futures
contract
underlying the option is subject to price limits while the option is not. The absence of an
underlying
reference price may make it difficult to judge ‘fair’ value.
VI. Deposited Cash and Property
You should familiarize yourself with the protections accorded money or other property you deposit
for
domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The
extent to which you may recover your money or property may be governed by specific legislation or
local
rules. In some jurisdictions, property which had been specifically identifiable as your own will be
pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.
VII. Commission and Other Charges
Before you begin to trade, you should obtain a clear explanation of all commission, fees and other
charges for which you will be liable. These charges will affect your net profit (if any) or increase
your loss.
VIII. Transactions in Other Jurisdictions
Transactions on markets in other jurisdictions, including markets formally linked to a domestic
market,
may expose you to additional risk. Such markets may be subject to regulation which may offer
different
or diminished investor protection. Before you trade you should inquire about any rules relevant to
your
particular transactions. Your local regulatory authority will be unable to compel the enforcement of
the
rules of regulatory authorities or markets in other jurisdictions where your transactions have been
effected. You should ask the firm with which you deal for details about the types of redress
available
in both your home jurisdiction and other relevant jurisdictions before you start to trade.
IX. Currency Risks
The profit or loss in transactions in foreign currency-denominated contracts (whether they are
traded in
your own or another jurisdiction) will be affected by fluctuations in currency rates where there is
a
need to convert from them currency denomination of the contract to another currency.
X. Trading Facilities
Most open-outcry and electronic trading facilities are supported by computer based component systems
for
the order-routing, execution, matching, registration or clearing of trades. As with all facilities
and
systems, they are vulnerable to temporary disruption or failure. Your ability to recover certain
losses
may be subject to limits on liability imposed by the system provider, the market, the clearing house
and/or member firms. Such limits may vary; you should ask the firm with which you deal for details
in
this respect.
XI. Electronic Trading
Trading on an electronic trading system may differ not only from trading inan open-outcry market but
also from trading on other electronic trading systems. If you undertake transactions on an
electronic
trading system, you will be exposed to risk associated with the system including the failure of
hardware
and software. The result of any system failure may be that your order is either not executed
according
to your instructions or is not executed at all.
XII. Off-Exchange Transactions
In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect
off-exchange transactions. The firm with which you deal may be acting as your counterparty to the
transaction. It may be difficult or impossible to liquidate an existing position, to assess the
value,
to determine a fair price or to assess the exposure to risk. For these reasons, these transactions
may
involve increased risks. Off-exchange transactions may be less regulated or subject to a separate
regulatory regime. Before you undertake such transactions, you should familiarize yourself with
applicable rules and attendant risks
DISCLOSURE STATEMENT RELATING TO NON-CASH MARGIN – CFTC RULE 190.10 (C)
This statement is furnished to you because Rule 190.10(C) of the commodity futures trading
commission
requires it for reasons of fair notice unrelated to this company’s current financial
condition.
- You should know that in the unlikely event of this company’s bankrupt, property, including property specifically traceable to you, will be returned, transferred or distributed to you, or on your behalf, only to the extent of your pro rata share of all property available for distribution to customer.
- Further notice concerning the terms for the return of specifically identifiable property will be by publication in a newspaper of general circulation
- The Commissions’ regulations concerning bankruptcies of commodity brokers can be found at part 17 of Code of Federal Regulations (CFR 17).
OFAC Disclosure
To help the government fight the funding of terrorism and money laundering activities, federal law
requires all financial institutions to support the efforts of the Treasury via Financial Crimes
Enforcement Network (FinCen) and Office of Foreign Asset Control (OFAC). To that affect Ulysses
Commodities LLC ("Ulysses") shall not deal with anyone found on OFAC’s Specifically
Designated Nationals and Blocked Person’s List. (see:
http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx)
By engaging Ulysses Commodities LLC ("Ulysses") you ("Customer") acknowledge
that
the following terms and conditions shall govern such relationship:
- To the best of Customer(s) knowledge the firm enforces OFAC’s regulations and doesn’t deal with any individuals or entities found on SDN/Blocked Persons List. (for a complete list of SDN/Blocked Person List, see PDF dated January 24th, 2013:http://www.treasury.gov/ofac/downloads/t11sdn.pdf)
- Customer(s) is compliant with all FinCen’s and OFAC’s regulations and either it, Customer(s) clearing house, Prime Broker or FCM routinely scans all new individuals/entities with which you conduct business to make sure they are clear as per OFAC: http://sdnsearch.ofac.treas.gov/
- Customer will immediately notify Ulysses Commodities LLC ("Ulysses") in writing should Customer become involved with such individuals, or entities and Customer acknowledges that at such time Ulysses may halt or suspend its dealing with Customer, or take other actions as mandated by the law. If Ulysses determines that Customer is on the SDN list or is engaging in transactions with others that are prohibited by the economic sanctions and embargoes administered and enforced by OFAC, Ulysses reserves the right to reject any transactions or commercial dealing with such Customer and/or file a blocked assets and/or rejected transaction form with OFAC within 10 days. Ulysses may also do so by calling the OFAC Hotline at (800) 540-6322 immediately.
- Should Customer cease to meet the regulations as mandated by OFAC and FinCen and altered from time to time, during the firm’s relationship with Ulysses, then Customer agrees to indemnify and hold Ulysses harmless from any regulatory actions that may occur due to any misrepresentation by Customer of its compliant status with OFAC, and any failure to notify Ulysses of any changes thereto or due to Customer continuing
Privacy Policy
The following privacy policy shall govern the relationship you ("Customer") will form with
Ulysses Commodities LLC ("Ulysses) in its function as an Introducing Broker, executor of
trades,
and purveyor of financial services. By
engaging Ulysses as an Introducing Broker, Customer consents to the terms below, and this consent
shall
carry through every transaction Customer engages with Ulysses.
Ulysses Commodities LLC (Ulysses) is committed to protecting the privacy, accuracy and reliability
of
any personal and professional information you ("Customer") choose to provide. Ulysses is
further committed to safeguarding such information from loss, misuse, unauthorized access,
disclosure
and alteration. This privacy policy statement is provided to you on behalf of Ulysses and addresses
its
data collection, use and disclosure practices. This privacy policy may change from time to time and
you
will receive written notification of any such changes. If your account was introduced to Ulysses by
a
third party, such as another introducing broker, or an Futures Commission Merchant, this privacy
policy
applies only to how your personal and professional information is handled and protected by Ulysses,
not
how it is handled and protected by the respective third party. Ulysses is limited by its liability
to
any misuse this or any other third party involved commits.
I. Information Collected
The reason the Ulysses collect information is to create and foster ongoing customer relationships,
Furthermore, To help the government fight the funding of terrorism and money laundering activities,
federal law requires all financial institutions, including all NFA registered entities as part of
their
Anti Money Laundering policy, obtain, and record information that identifies each person, and
financial
entity which opens an account. In the normal course of this process, Ulysses obtains and retains
non-public information about you/your entity which is transmitted to us either directly by you or
via an
approved third party (such as your existing Prime Broker, FCM or another Introducing Broker) in
order to
open an account. This includes the name and address of your entity, the legal jurisdiction and
formation
of your legal entity, EIN/ Federal Tax ID number, names of all those with trading authorizations to
place orders on the account, names of those with access to request trading information/records from
us,
and so on. Ulysses may also obtain and retain nonpublic information resulting from day to day
trading:
account balances, funding, transaction history in the market, and so on. Ulysses will limit such
information to such facts as are necessary to establish a relationship with you as a customer and to
offer accurate and superior service in the normal course of business as it relates to your account
carried with it, and guard such information to the great extend as mandated by the law.
II. Use of Information
Ulysses may use your information in three general purposes:
- First, Ulysses may use the information to approve and activate an account for you and/or to make changes or additions to information previously provided to us to open an account for you.
- Second Ulysses may use it to give your company, your staff, or approved third parties (FCM, Prime Broker, Back Office personal) access to your account and proprietary information in a secured environment in the normal course of business to transmit account activity statement, records or related documents.
- Third, Ulysses may use the information to comply with regulatory mandates enforced by the law: AML laws, RICO laws, US Patriot Act, FinCEN requests, OFAC’s SDN and Blocked Person Lists, and others.
III. Disclosure of Information
Ulysses takes its responsibility very seriously to keep your information private. Ulysses will not
disclose non-public information about our customers except as required and permitted by law and in
the
following instances:
In processing or servicing Covered Products and Services offered that have been consented to,
requested
or authorized by you, the customer.
Ulysses may use your information with affiliates and subsidiaries and/or unaffiliated third parties
only
as is necessary to verify the accuracy of the information you have provided, to conduct identity,
background and
possible OFAC/SDN checks, to process or collect payments, to service your account, for audit
purposes
and/or to ensure regulatory compliance.
Ulysses may be required to disclose information by law or legal process for a variety of reasons,
including protecting and defending Ulysses’ rights or property or as may be mandated from time
to
time by regulatory agencies. Ulysses may also be required to disclose information to the regulatory
bodies whose jurisdiction it is subject to.
Except under the circumstances described above, Ulysses will not disclose any of your information to
unaffiliated third parties, unless specifically authorized by you in writing to do so. The
confidentiality and conditions of this
agreement will continue to be maintained even when you cease to do business with Ulysses.
IV. How Ulysses Commodities LLC Protects Information
Ulysses takes reasonable measures to protect your information from unauthorized access through the
use
of physical security, and use and access policies for employees. Ulysses safeguards customer
information
from
unauthorized access by their confidentiality policies and/or limiting the number of employees
permitted
to access such information through personalized staff passwords, and by having in place a process
for
disciplinary action
where appropriate. Additionally, customer, or account activity related information is protected on
Ulysses’ back office administration with a variety of security measures such as passwords, and
physical access controls. Ulysses
Commodities LLC also employs a variety of other mechanisms to protect a user’s data from being
lost, misused, or altered inappropriately, and uses experienced, sophisticated, and highly secure
third
party back up facility through Google and Amazon (AWS). Although Ulysses takes these measures to
safeguard against unauthorized use of a user’s data, it cannot control Internet transmissions
and
cannot provide assurances that information transmitted to it will never be compromised.
V. Information Sharing with Affiliates
Although by law we are permitted to share information with any future affiliates and/or future
subsidiaries related to transactions and experiences with your firm, it is our policy not to do so
without your authorization, except in the
limited circumstances referenced above. Accordingly Ulysses will not share any information either
provided by you or obtained from approved (by you) third parties, unless it is necessary to do so
for
the purposes described above or it is required by law or regulation or unless we have your specific
written authorization. At this time Ulysses does not have any subsidiaries and or affiliates.
Ulysses
Web site is password protected and directed at compliance officers, regulators, employees and other
non-public parties that must be given specific permission to access firm
information. However, if in the future it may contain hyperlinks to third parties’ Web sites
or
advertisers on its website, this privacy policy will not apply to those third party Web sites.
Ulysses
will not be responsible for the privacy policies or content of any other Web site its customers
visit or
link to, nor will it have control over the use or security of any information provided to its
customers
or collected by those Web sites. It is recommended that you become familiar with the privacy
policies of
those Web sites that you visit or link to.
VI.Accuracy of Information
On an ongoing basis Ulysses will evaluate efforts to protect your information and ensure its
accuracy.
Should you identify any inaccuracy in the information included in any communication you receive from
the
Ulysses, please
notify our Director of Compliance immediately. We will take reasonable steps to ensure it is
corrected
on a timely basis.
VII. Non-Disclosure of CONFIDENTIAL information
Customers/Client confirm that all trade information, market information disseminated through e-mail,
IM,
phone, in writing or in person, broker communication and other information transmitted from Ulysses
Commodities LLC employees, AP’s, directors, or shareholders to clients of the firm shall be
deemed
Confidential. By engaging Ulysses, Client gives their consent, and this consent shall carry through
every given transaction; this consent shall commit clients to maintaining the confidentiality of
such
communication from Ulysses to clients, and confirm that transmitting such information to other
parties,
be it other clients, direct competitors, indirect competitors (of Ulysses) or any other outside
entity
Ulysses does not desire to communicate such information to may result in damages to Ulysses. Client
consents transmitting confidential information to external parties shall constitute breach of this
agreement and such breach shall hold clients liable for damages to Ulysses, including but limited
to:
loss of profits, incidental, consequential, special or punitive damages, regardless of negligence or
fault of the Client.
VIII. Version Updates
Ulysses
ELECTRONIC TRADING AND ORDER ROUTING SYSTEMS DISCLOSURE STATEMENT
ACKNOWLEDGMENT You ("Customer") hereby confirm your consent to this policy every time you authorize Ulysses Commodities LLC to enter orders to trade in Commodity Contracts on any available electronic trading and order routing systems. You acknowledge having read and understood the Electronic Trading and Order Routing Systems Disclosure Statement, and you have the capacity to undertake the risk involved in such Commodity Contracts.
ELECTRONIC TRADING AND ORDER ROUTING SYSTEMS POLICY
DISCLOSURE STATEMENT: Electronic trading and order routing systems differ from traditional open
outcry
pit trading and manual order routing methods. Transactions using an electronic system are subject to
the
rules and regulations of the exchange(s) offering the system and/or listing the contract. By
enegating
Ulysses you acknowledge acceptance of this policy, and your consent to them every time you engage in
a
new transaction through us. You should further review the rules and regulations of the respective
exchange(s) offering the system and/or listing contracts you intend to trade.
DIFFERENCES AMONG ELECTRONIC TRADING SYSTEMS: Trading or routing orders through electronic systems
varies widely among the different electronic systems. You should consult the rules and regulations
of
the exchange offering the electronic system and/or listing the contract traded or order routed to
understand, among other things, in the case of trading systems, the system’s order matching
procedure, opening and closing procedures and prices, error trade policies, and trading limitations
or
requirements; and in the case of all systems, qualifications for access and grounds for termination
and
limitations on the types of orders that may be entered into the system. Each of these matters may
present different risk factors with respect to trading on or using a particular system.
Each system may also present risks related to system access, varying response times, and security.
In
the case of internet-based systems, there may be additional types of risks related to system access,
varying response times and security, as well as risks related to third party service providers and
the
receipt and monitoring of electronic mail.
RISKS ASSOCIATED WITH SYSTEM FAILURE: Trading through an electronic trading or order routing system
exposes you to risks associated with system or component failure. In the event of system or
component
failure, it is possible that, for a certain time period, you may not be able to enter new orders,
execute existing orders, or modify or cancel orders that were previously entered. System or
component
failure may also result in loss of orders or order priority.
SIMULTANEOUS OPEN OUTCRY PIT AND ELECTRONIC TRADING: Some contracts offered on an electronic trading
system may be traded electronically and through open outcry during the same trading hours. You
should
review the rules and regulations of the exchange offering the system and/or listing the contract to
determine how orders that do not designate a particular process will be executed.
LIMITATION OF LIABILITY: Exchanges offering an electronic trading or order routing system and/or
listing
the contract may have adopted rules to limit their liability, the liability of FCMs, and software
and
communication system vendors and the amount of damages you may collect for system failure and
delays.
These limitations of liability provisions vary among the exchanges. You should consult the rules and
regulations of the relevant exchange(s) in order to understand these liability limitations
POLICY OF TRANSMISSION OF CUSTOMER INFORMATION AND CONFIRMATIONS VIA INSTANT MESSENGER AND/OR E-MAIL
In order to direct execution orders, modify or cancel such orders, receive your daily and monthly
trade
confirmations and purchase and sale statements ("Customer Information") via Instant
Messenger
("IM") and
or email, you ("Customer") acknowledge, confirm and consent that the following terms shall
govern such
transmissions, and will apply per every given transmission:
Customer has requested that Ulysses Commodities, LLC ("Ulysses") transmit and communicate
market orders,
alter/modify or cancel such orders in Covered Products and Services and respective Customer
Information
via the
Internet by a designated IM and or E-mail transmission. This consent for transmission may also
equally
apply to
daily or periodic statements. Parties acknowledges this consent to electronic transmission of orders
and
statements
is revocable, but will remain in effect until Ulysses receives written notice from customer to
revoke
such consent.
Per Customer request Ulysses will transmit such information through E-mail and or designated Instant
Messenger (AIM, Yahoo, YJ, PIVOT, etc) under the following conditions:
- Ulysses makes no warranties or representations, express or implied, regarding the Instant Messenger ("IM") or e-mail service and shall not be liable for any interruptions, delays, inaccuracies, errors, omissions or any faults in the IM and or e-mail service, however occurring.
- Customer will indemnify and hold Ulysses or any of its subsidiaries or affiliates harmless against any and all claims by parties or third parties in any way connected to or arising out of the use of IM and or e-mail service.
- Performance of IM and/or e-mail service will be excused if prevented by circumstances beyond the reasonable control of Ulysses, including but not limited to: Acts of God or public enemy, fire or other casualty, labor disputes, or failure of communications companies.
- Customer will be responsible for informing Ulysses of changes in its services (Communication Company, IT Providers, etc) with regard to changes in the e-mail address or IM itself. Failure to communicate new or changed IM and or e-mail addresses will result in failure to receive/transmit communications in this manner, or in exposing third parties to confidential information
- Customer warrants and represents that it fully understands the risks associated with the transmission of information by use of the internet, including but not limited to the tampering with, or unauthorized use of the Customer’s Information by unauthorized third parties and that it will implement the highest standard of care to prevent any unauthorized receipt or use of Customer’s Information.
- Ulysses reserves the right to modify or discontinue this service at any time without notice.
CUSTOMER COMPLAINT PROCEDURES
Introduction:
Despite our diligent service, adherence to the highest fiduciary duties, and aim to please oour
customers; flaring tempers
volatile markets and other issues unbeknownst to Ulysses can cause customers to voice strong
opinions.
Given
that we deal only with Eligible Contract Participants (ECP’s) also known as professional or
institutional entities,
strong opinions may be voiced on a daily basis. How does one differentiate between customers blowing
off
steam
and an official customer complaint?
What qualifies as a complaint?
In a nutshell – a complaint must be formally submitted in writing via THIS
FORM
- A complaint is recognized once the customer writes out a formal customer complaint (as per the form attached) stating the issue in details, stating what sort of action should or should not have been taken, and what lessons going forward are required on behalf of Ulysses. Such written format will allow the prevailing issues to surface. Customers are urged to submit complaint forms ASAP (within 24 hours) e-mails to AP, Principles and all communication cc’d to CC@ulysses.biz – while memories are still fresh, and action can be taken to rectify the situation. The longer time elapsed between incident and complaint submission the less effective Ulysses can be in any time of action it might potentially take.
- A complaint is also recognized when a regulatory agency, DCM, or attorney on behalf of the client submits written communication regarding trades handled by Ulysses.
The following qualify as Warning Sign that an issues may escalate into a customer complaint:
- Unusual or highly aggressive behavior by customer/s.
- Any form of request to escalate a conversation to supervisor
- Any request for compensatory damages. Reasoning ranging from claims of poor service, claim of trading error (fat finger error, outs,etc), or any other reason When encountered with a Warning Sign, AP’s are to take the following action:
- If client requests to speak with a supervisor, escalate the call immediately.
- If a supervisor is not present and an error that may result in compensatory damages, take immediate action to minimized damages, and alert the desk supervisor and/or Ulysses principles as soon as possible.
Internally:
- TIMELINE: All customer complaints must be dealt with immediately and escalated to supervisor and/or principle level. Internal company personnel/principles accompanied by the account executive MUST discuss and resolve customer complaint ordecide on steps to resolve/alleviate issuesat hand by the close of the SAME business day. If not in person then byconference call.
- RESPONSE: Principle that is also registered as AP must RESPOND to all complaints in writing in a timely manner.
- ARCHIVING: All resolved decisions must be documented in writing. These matters will be stored via an e-mail sent to thee-mailaddress: CC@ulysses.biz with all pertinent documentations, resolutions, evidence, and other notes attached to the e-mail. These must be stored for a period of 5 years from the date of resolution.
- OUTSIDE COUNSEL: If need be matters are to be escalated to the firm’s counsel for further discussion and supervision.
In conclusion:
In the course of performing fiduciary duties, Ulysses realizes errors or complaints happen, but it
is a matter of organizational efficiency to:
- document these occurrences properly and in writing; and
- take swift, timely, unified action