Section 240.3 - Prohibited transactions(a)Fraudulent conduct prohibited. No banking institution or its related persons may, directly or indirectly, in or in connection with any retail forex transaction:(1) Cheat or defraud or attempt to cheat or defraud any person;(2) Knowingly make or cause to be made to any person any false report or statement or cause to be entered for any person any false record; or(3) Knowingly deceive or attempt to deceive any person by any means whatsoever.(b)Acting as counterparty and exercising discretion prohibited. A banking institution that has authority to cause retail forex transactions to be effected for a retail forex customer without the retail forex customer's specific authorization may not (and an affiliate of such an institution may not) act as the counterparty for any retail forex transaction with that retail forex customer.