Revenue Structure

NFA has been examining funding mechanisms that will generate sufficient revenue from Swap Dealers and Major Swap Participants to recover NFA's anticipated costs in regulating these firms. NFA's Board of Directors ("Board") met and approved the proposed revenue structure on November 15, 2012. The Board approved the following amendments to NFA Bylaw 1301(f) to adopt an annual membership dues structure for SDs and MSPs:

• Each SD Member that meets the definition of a Large Financial Institution pursuant to Article XVIII(n) of NFA's Articles of Incorporation shall pay to NFA annual dues in the amount of $1,000,000 (Tier 1);

• Each SD Member that does not meet the definition of a Large Financial Institution pursuant to Article XVIII(n) of NFA's Article of Incorporation shall pay to NFA annual dues in the amount of $250,000 (Tier 2);

• Each MSP Member shall pay to NFA annual dues in the amount of $250,000; and

• Any SD Member or MSP Member that is an affiliate as defined in Article XVIII(b) of NFA's Article of Incorporation of a SD Member or a MSP Member shall pay annual dues in the amount of $150,000 (affiliate of Tier 1 or Tier 2 Swap Dealer).

The CFTC approved the amendments to adopt the annual dues structure for SDs and MSPs effective April 1, 2013 (see Notice I-13-06).