Today, LTG Goldrock will share with you the main responsibilities and construction purpose of the US NFA ~
Several regulatory duties in NFA's performance are:
● Review and supervise members must meet the financial requirements of NFA;
● Formulate and enforce the rules and standards to protect the interests of customers;
● Arbitration of disputes related to futures;
● Approval of NFA membership qualifications, Futures Agent (FCMS), Introduction Brokers (IBS), Commodity Trading Consultants (CTAS) and Commodity joint venture fund managers (CPOS) can become members of NFA.
In addition, in accordance with section 17, NFA fulfilled some registered registration functions previously performed by CFTC in the "Commodity Trading Law".Any institution or individual registered in CFTC can become a member of NFA, including all futures exchanges and any other futures business, as long as the applicant meets the membership qualifications of NFA.In addition, since August 31, 1985, according to the "Commodity Trading Law", the employees of NFA members as "related people" were required to register as "joint members" who were registered as NFA.CFTC also authorizes the registration of the agent and the on -site dealers' application for the NFA processing.In accordance with the NFA rules 1101 and CFTC rules 17015, all FCM, IB, CTA, and CPOs must take the membership of the NFA.
Construction purpose
From the beginning, the leaders of NFA believed that NFA must do its best to benefit the public and futures industry. For this reason, NFA set two basic goals and wrote it in the NFA rules approved by CFTC:
1. The futures industry itself shall effectively manage the development institutions and personnel outside the exchanges and supervision systems;
2. Considering the interests of all taxpayers, especially market users, through the elimination of the existing governments and self -discipline organizations, the parts of repeated, alternating and conflict in the functions of the existing government and self -discipline organizations can achieve good control of regulatory costs by reducing the cost of federal supervision.
The initial purpose of the National Futures Association NFA is to establish the moral norms of futures and other markets and protect the interests of traders and investors.Every individual and company that provides transaction services to customers in the US futures and foreign exchange markets must be registered with the US Commodity Futures Trading Commission (CFTC) and become a member of NFA.NFA has about 4300 members and 50,000 related members (representatives of NFA member companies).
The main function of NFA is to implement strict management in order to strictly comply with the rules of federal law and CFTC.NFA also has its own rules to monitor the behavior specifications of traders and investors, so that traders and investors are not deceived.From many facts that the management model of NFA is successful.Within 20 years after the start of the NFA, the transaction volume of the US futures exchanges and foreign exchange markets has expanded dozens of times.At the same time, the customer's complaint rate was reduced by 72%.
