Breach of Contract

Clients enter into a Client Agreement with the brokerage firm which provides that the brokerage firms and the brokers are contractually bound to follow the applicable rules of all exchanges of which the firm is a member and of exchanges through which trading is conducted. In addition, the brokerage firms enter into a license agreement with FINRA or with various stock exchanges which require each party to comply with all of the rules and regulations of that exchange. Clients may be able to raise claims for breach of the Client Agreement or under the License agreement as a third-party beneficiary.