The NFA is a self-regulated body that provides creative and effective regulatory initiatives to the US derivatives market.
The CFTC has designated NFA as a registered futures association, and the NFA works hard every day to protect investors, preserve the integrity of derivatives markets, and ensure Members satisfy their regulatory obligations.
NFA seeks to foster a diverse, inclusive workplace that values each employee’s ingenuity and unique talents.
What is the mission of the National Futures Association?
The National Futures Association (NFA) is a self-regulatory body for the derivatives business in the United States. The CFTC has designated NFA as a registered futures association, and the NFA works hard every day to protect investors, preserve the integrity of derivatives markets, and ensure Members satisfy their regulatory obligations.
Who is required to register with the NFA?
Certain derivatives firms and individuals must register with the Commodity Futures Trading Commission (CFTC) under the Commodity Exchange Act (CEA). CFTC laws also require CFTC registered enterprises to be NFA Members, with a few exceptions. The CFTC has delegated registration authority to the National Futures Association (NFA).
Is the NFA able to take legal action?
Actions in the Field of Enforcement and Registration Any Member or Associate who breaks the rules is subject to disciplinary action by the NFA. If an NFA Member or Associate participates in activity that endangers clients, the futures markets, or other NFA Members, the NFA will take swift action.
Who makes up the NFA?
NFA implements and enforces market integrity regulations, as well as programs and services to assist Members in meeting their regulatory requirements.
What does buying futures imply?
- Futures are financial derivative contracts in which the buyer agrees to acquire an asset and the seller agrees to sell an asset at a defined future date and price.
- An investor can speculate on the direction of an asset, commodity, or financial instrument via a futures contract.
- Futures are used to protect against losses caused by unfavorable price movements by hedging the price movement of the underlying asset.
In trade, what are futures?
Futures are a sort of derivative contract in which the buyer and seller agree to buy or sell a specified commodity asset or security at a predetermined price at a future date. Futures contracts, or simply “futures,” are traded on futures exchanges such as the CME Group and require a futures-approved brokerage account.
A futures contract, like an options contract, involves both a buyer and a seller. When a futures contract expires, the buyer is bound to acquire and receive the underlying asset, and the seller of the futures contract is obligated to provide and deliver the underlying item, unlike options, which can become worthless upon expiration.
Is a licence required to trade futures?
The Series 3 Exam and License The National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC) both need the Series 3 examination before a person may be called a commodities and futures professional.
Is the National Football League a government organisation?
- The National Futures Association (NFA) is a self-regulatory organization that oversees the futures and derivatives markets in the United States.
- Firms and individuals who work in the futures and derivatives sector must pay membership dues and follow the NFA’s guidelines.
- Failure to follow the NFA’s standards could result in fines or expulsion from the organization.
- The NFA is funded primarily by membership dues, fees, and assessments paid by members and other derivatives market participants.
What is the distinction between the NFA and the CFTC?
When Congress established the CFTC, it also gave it the authority to create registered futures groups with the authority to control the activities of their members. The National Futures Association is the only registered futures association. The CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO) is in charge of overseeing NFA and its responsibilities. DSIO evaluates whether the NFA is meeting its requirements to investigate futures and swap markets intermediaries for compliance with the Commodity Exchange Act, CFTC regulations, and NFA rules on a regular basis. In all of its actions, the NFA collaborates closely with the CFTC. The CFTC must examine and approve all of the NFA’s major actions, including rule revisions, enforcement actions, and registration actions.
Is NFA able to refuse registration?
(b) After a registrant updates its Form 7-R or files a Form 8-R in accordance with paragraph (a) of this Rule, NFA may notify the registrant that the new principal may be disqualified from registration under Sections 8a(2) through 8a(4) of the Act, and that the registrant’s registration will be suspended until NFA issues a notice of suspension.