NFA(CTA/CPO)

Brief introduction of mechanism

Institutional nature: self-regulatory institutions

Institutional introduction: The National Futures Association of the United States is a non-commercial independent regulatory body for the derivatives industry in the United States. It is a profit-making membership organization. Its regulatory scope includes futures trading, retail foreign exchange and over-the-counter derivatives.For more than 40 years since its establishment, the NFA has adhered to safeguarding the ethics of the futures market, maintaining harmony and unity, protecting the interests of investors, and supervising members'compliance with regulatory responsibilities.

The main function of NFA is to enforce strict management in order to make NFA members strictly abide by federal laws and CFTC rules. The NFA also has its own rules to monitor brokers'behaviour towards traders and investors, so that traders and investors can not be deceived.


Institutional function

(1) Maintaining the Credit of Derivatives Market

(2) Protecting the Rights and Interests of Investors

(3) Ensuring that its members meet their regulatory responsibilities

(4) Auditing and supervising members must meet the financial requirements of NFA;

(5) To formulate and enforce rules and standards to protect the interests of customers;

(6) Arbitration of disputes related to futures;

(7) Approval of NFA membership, Futures Agents (FCMs), Introductory Brokers (IBs), Commodity Trading Advisers (CTAs) and Commodity Joint Venture Fund Managers

(CPOs) can be a member of the NFA.