NFA

NFA USA, or the National Futures Association, is the regulatory body responsible for overseeing and supervising the futures industry in the United States. It is a self-regulatory organization that was established in 1982.

NFA History

The National Futures Association was established in 1982 as a response to the growing need for a self-regulatory organization for the futures industry in the United States. The Commodity Futures Trading Commission, which is the federal regulatory agency for the futures industry, delegated certain regulatory functions to NFA to help ensure effective oversight of the industry.

NFA Scope

NFA USA has a broad scope of responsibility, with the main objective being the protection of investors and the integrity of the futures industry in the United States. The association is responsible for regulating and supervising a range of activities related to the futures industry, including futures trading, commodity pool operation, and commodity trading advisor activities.

NFA Supervision

One of the key functions of NFA USA is to ensure the safety and stability of the futures industry in the United States. To achieve this, the association has the power to supervise and regulate all entities operating in the futures industry, including futures commission merchants, introducing brokers, and commodity pool operators. NFA monitors the financial health of these entities, assesses their risk management practices, and ensures that they comply with relevant regulations and laws.

NFA Capital Guarantee

NFA USA does not offer a capital guarantee scheme for investors in the futures industry. However, it does require futures commission merchants and other regulated entities to maintain adequate capital buffers and to comply with strict risk management rules. This helps to protect investors from potential losses, and to ensure that the futures industry operates in a safe and stable manner.

NFA Organization Type

NFA USA is a self-regulatory organization, and as such, it is funded by the futures industry itself. The association is governed by a Board of Directors, which is elected by the membership. The Board is responsible for the overall direction and strategy of the association, while the day-to-day management of the association is handled by a President, who is appointed by the Board.