National Futures Association
From The Free Forex Encyclopedia
The National Futures Association (NFA) watches over the commodities and futures markets in the United States. As a regulatory agency, it protects investors from fraudulent commodities and futures activities. It aims to maintain investor confidence by developing rules, programs, and services that safeguard market integrity. It also helps resolve consumer complaints.
It was created by the Commodity Futures Trading Commission (CFTC) in 1982, under the Commodity Exchange Act. This legislation contained a provision that gave the futures industry the right to create a futures organization. This organization was expected to regulate the futures industry, based on the rules created by CFTC.
In 1998, the NFA granted online access to Background Affiliation Status Information Center (BASIC), which provides information on institutions registered with CFTC. These institutions comprise firms and individuals that engage in futures business with the public. There are currently around 4,200 NFA member firms and 55,000 NFA associate members.
The NFA's Membership Committee is in charge of reviewing decisions made by the NFA President regarding eligibility for membership in the NFA. This committee is made up of 11 individuals.
Business Conduct Committee
The NFA's Business Conduct Committee (BCC) is composed of nine members, three of whom should not have any affiliation with an NFA member. These BCC officials serve three-year terms. They are responsible for reviewing audit and investigative reports by the NFA compliance staff.