Consent to Cross-Transactions

B

Bakinec

I'm trying to open a futures account with a broker that clears through Penson. There is an agreement they want me to agree to and here's what it says:

Consent to Cross Transactions

This consent is being provided in order to comply with exchange rules regarding cross trade procedures and the execution of trades in which a floor broker or brokerage firm may be directly or indirectly involved as a principal to a transaction on an exchange that, from time to time, adopts rules requiring customer consent for these transactions.

Customer hereby consents that Penson Futures, its agents, or floor brokers handling Penson Futures orders, may, without prior notice, execute Customer's orders in which GHC, its directors, officers, employees, agents, or such floor broker, may directly or indirectly, become the buyer to Customer's sell order or the seller to Customer's buy order, provided that such executions are made in accordance with exchange rules and any applicable provision of the Commodity Exchange Act or regulations of the Commodity Futures Trading Commission. This consent shall be continuous and remain in effect until revoked in writing by Customer.
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Is there something I'm missing? I thought all e-mini futures go thorough GLOBEX where broker desk-dealing is not possible?
 
Orders are matched per exchange rules. This is a cya (cover your ass) clause in the unlikely event a principal is on the other side of the matching engine, or the floor broker in the event of an pit order. This is standardized language and you will not open an account with any US brokerage without it I think, very least of your worries.

Quote from Gubinec:

I'm trying to open a futures account with a broker that clears through Penson. There is an agreement they want me to agree to and here's what it says:



Is there something I'm missing? I thought all e-mini futures go thorough GLOBEX where broker desk-dealing is not possible?
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