Type 2 regulated activity refers to which?

Type 2 regulated activity refers to which?

• A. Advising on securities
• B. Dealing in securities
• C. Leveraged FX trading
• D. Dealing in futures

Answer: (D)

Type 2 regulated activity is dealing in futures contracts. This means performing or arranging transactions to buy or sell futures, for clients or on the firm’s own account, typically on a regulated futures market. Futures are standardized contracts to buy or sell an asset at a future date, often with leverage, and handling them requires the specific licensing and regulatory oversight that comes with dealing in futures. This fits the option that targets futures, not securities or foreign exchange. Advising on securities is a separate regulated activity, dealing in securities is another, and leveraged FX trading is yet another category. Dealing in futures is the precise activity described by Type 2.

Type 2 regulated activity is dealing in futures contracts. This means performing or arranging transactions to buy or sell futures, for clients or on the firm’s own account, typically on a regulated futures market. Futures are standardized contracts to buy or sell an asset at a future date, often with leverage, and handling them requires the specific licensing and regulatory oversight that comes with dealing in futures.

This fits the option that targets futures, not securities or foreign exchange. Advising on securities is a separate regulated activity, dealing in securities is another, and leveraged FX trading is yet another category. Dealing in futures is the precise activity described by Type 2.