17 CFR § 5.2 - Prohibited transactions.
(a) Scope. The provisions of this section shall be applicable to any retail forex transaction.
(b) Fraudulent conduct prohibited. It shall be unlawful for any person, by use of the mails or by any means or instrumentality of interstate commerce, directly or indirectly, in or in connection with any retail forex transaction:
(1) To cheat or defraud or attempt to cheat or defraud any person;
(3) Willfully to deceive or attempt to deceive any person by any means whatsoever.
(c) Acting as counterparty and exercising discretion prohibited.
(1) No person who acts as the counterparty for any retail forex transaction may do so for an account for which the person or any affiliate of the person is authorized (by contract, power of attorney or otherwise) to cause transactions to be effected without the client's specific authorization.