Does NFA Compliance Rule 2 4 just and equitable principles of trade applies only to swap dealers?

Previously, NFA Compliance Rule 2-4 only applied with respect to futures business. The amended rule now incorporates swaps, and applies to swap dealers and major swap participants and the swaps activities of futures commission merchants, introducing brokers, commodity pool operators and commodity trading advisors.

Does NFA Compliance Rule 2/5 apply to all members?

RULE 2-5. [Effective date of amendments: July 24, 2000.] Each Member and Associate shall cooperate promptly and fully with NFA in any NFA investigation, inquiry, audit, examination or proceeding regarding compliance with NFA requirements or any NFA disciplinary or arbitration proceeding.

Who can NFA members do business with?

Any Member could, despite its best efforts, be transacting customer business with a person who is actually required to be registered as an FCM, IB, CPO or CTA. In such a case, the Member is in technical violation of the strict liability terms of NFA Bylaw 1101.

Who is required to register with the NFA?

The Commodity Exchange Act (CEA) requires certain firms and individuals that conduct business in the derivatives industry to register with the CFTC. CFTC regulations also require, with few exceptions, CFTC registered firms to be NFA Members. The CFTC has delegated registration responsibility to NFA.

Can NFA take enforcement action against all individuals?

NFA has the authority to take disciplinary actions against any Member or Associate that violates its rules. If an NFA Member or Associate engages in conduct that puts customers, the futures markets, or other Members at risk, immediate action will be taken accordingly.

Does NFA has regulatory authority over security based swaps?

NFA provides regulatory services to designated contract markets (DCM) and swap execution facilities (SEF)—each of which has self-regulatory responsibilities to monitor trading on its platform.

Does NFA have regulatory authority over security based swap dealers?

Who Does the NFA Regulate? The NFA regulates all qualified brokers, futures merchants, commodity pool operators, swap dealers, exchanges, commodity trading advisors, and retail foreign exchange dealers that deal in the futures markets.

Can NFA bring disciplinary proceeding against CFTC registered individuals?

What license do I need to sell derivatives?

The Series 3 License and Exam The Series 3 examination is the all-encompassing test that is required by the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC) in order to be considered a commodities and futures professional.

Who is an associated person NFA?

An associated person (AP) is an individual who solicits orders, customers or customer funds (or who supervises persons so engaged) on behalf of a futures commission merchant (FCM), retail foreign exchange dealer (RFED), introducing broker (IB), commodity trading advisor (CTA) or commodity pool operator (CPO).

What happens if you violate the NFA?

Any violation of the NFA is a felony punishable by a fine of up to $250,000 and up to 10 years in prison, and any firearm involved is forfeit. Of NFA firearms (silencers, machine guns, short barrel rifles, short barrel shotguns, any other weapon (AOW) and destructive devices) machineguns are the most restricted.