National Futures Association (NFA)
Candlefocus EditorThe primary goal of NFA is consumer protection. All NFA members, including registered brokers, futures commission merchants, introducing brokers, commodity trading advisors, commodity pool operators, leverage transaction merchants, and swap dealers must abide by strict standards of conduct and comply with the rules imposed by the NFA. All of these entities can be fined or have their NFA membership revoked if they fail to abide by the NFA’s rules and regulations.
The NFA operates at no cost to the taxpayer. Rather, it is primarily financed by membership dues, fees, and assessments paid by members and other users of the derivatives markets. To ensure compliance, the NFA carries out a number of activities such as registering members, conducting effective surveillance and monitoring of the markets and its participants, and providing effective customer dispute resolutions. Additionally, NFA also provides member education and training, dispute arbitration services, and hosts market structure committees.
The organization also publishes the National Futures Association's Regulations and Compliance Guides, containing its rules and regulations. These guides are available online or from NFA at no cost. The guides explain the NFA’s regulatory requirements, as well as rules and guidelines applicable to brokers, dealers, and other market participants. The guides also provide information on topics such as insider trading, customer practices, and recordkeeping.
The NFA is a key participant in the futures and derivatives markets, providing enforcement and regulation to help ensure a safe, competitive and efficient marketplace. It is responsible for monitoring market participants and ensuring they abide by the rules and regulations necessary to protect both investors and the markets. NFA also ensures that the value and integrity of both futures markets and derivatives markets are maintained.