Member Newsletter

NFA publishes Regulatory Guide for Security Futures Products
NFA has published a Regulatory Guide for Security Futures Products to help its Members who are notice-registered as broker-dealers to understand their regulatory obligations regarding these new products. The 40-page booklet covers many issues relating to SFPs, including registration, proficiency training, account opening, promotional material and supervision.

The Regulatory Guide is just one element of a comprehensive set of resources for NFA Members who want to offer SFPs to their customers. NFA has also developed an SFP Reference Guide, which is divided into "Areas of Regulation" (e.g., registration, proficiency training, supervision, promotional material, etc.). For each area the guide lists the SFP regulatory requirements and references the specific NFA Compliance Rule or Interpretive Notice that contains the requirement.

NFA has also published an introductory brochure for investors titled “Security Futures: An Introduction to Their Uses and Risks.” Members can download all of these publications from NFA’s Web site www.nfa.futures.org or request copies from NFA’s Information Center (800-621-3570).

“Issues and Answers 2003: NFA Member Meetings” scheduled in two additional cities
NFA’s Member outreach program, “Issues and Answers 2003,” will travel to Dallas on April 29 and Boston on June 5. The Dallas meeting will be held at the Renaissance Dallas Hotel from 2:00 p.m. to 4:00 p.m. The meeting in Boston will be held from 3:00 p.m. to 5:00 p.m. at the Boston Sheraton Hotel. There is no charge to attend either meeting.

“Our meetings in Los Angeles and New York in February were very successful,” said Larry Dyekman, director of Communications and Education at NFA. “Our Members appreciate the opportunity to discuss industry issues and get answers to their questions.”

A few weeks prior to each meeting, NFA solicits Members located in and around the meeting’s location to determine what issues they would like to discuss. NFA staff subsequently develops the meeting’s agenda to incorporate the Members’ suggestions.

NFA encourages Members to visit the NFA Web site periodically to get the most current information regarding upcoming meetings.

Robert Wilmouth receives Arthur Kaplan Award
Former NFA President and current Special Policy Advisor Robert Wilmouth was given the Arthur Kaplan Award by Futures and Options for Kids, a philanthropic organization dedicated to improving the lives of children in need. The Award was presented to Wilmouth at a benefit dinner in New York on February 27.

The award is named in honor of Arthur Kaplan, who served as Chairman of Futures and Options for Kids (formerly known as the CEC Children’s Fund). During his tenure as chairman, Kaplan created an awareness among the New York futures community about the plight of less fortunate children.

NFA staff scheduled to speak at upcoming industry events
Several NFA staff members will participate in industry events to be held during the next few months. At the FIA Law and Compliance Division’s 25th Annual Workshop, General Counsel Tom Sexton will appear on a panel that will “introduce the audience to basic concepts of the futures industry, especially comparing these concepts to the equivalent concepts in the securities industry.” The FIA Workshop will be held on May 7-9 in Baltimore, Maryland.

Senior Vice President of Compliance Yvonne Downs will also participate at the Workshop, serving on a panel that will discuss “Regulatory Examination Priorities for 2003.” And Compliance Associate Director John Brodersen will appear on a panel discussing “Electronic Communications and Record Retention.”

Downs will also participate in the FOW’s Derivatives and Risk Expo on May 20-21 in New York. She will be part of a round table discussion of “The FCM Business 2003.” Sexton will speak at the Managed Funds Association’s Forum 2003 on June 16-18 in Chicago. He will discuss the proper use of Web sites to promote futures trading.

NFA will also sponsor an information booth at Forum 2003 and at the Managed Account Report’s Mid-Year Conference on Alternative Investments on June 22-24 in Orange County, California.

NFA staff attend Fraud Working Group meeting
Associate General Counsel Ron Hirst and Associate Director of Compliance Patty Cushing attended this year's first local Fraud Working Group meeting on Tuesday, January 21. Along with NFA, members of the group include the U.S. Attorney's Office, FBI, CFTC, Postal Inspector and Illinois Department of Securities.

NFA’s participation in the Working Group fosters more effective communication among regulatory and law enforcement agencies, resulting in more effective customer protection efforts.

NFA gives risk management presentation at Farm Bureau Convention
NFA staff attended the American Farm Bureau Federation's Annual Conference on January 19-20 in Tampa, Florida. Director of Communications and Education Larry Dyekman gave a one-hour presentation to the attendees on the opportunities and risks inherent in futures trading and how to use the futures markets to manage agricultural risk. The Communications staff also distributed NFA’s investor education materials to conference attendees.

Joint Audit Committee meeting highlights
Compliance Managing Director Regina Thoele, Associate Director Sharon Pendleton and Team Manager Carla Colone attended a meeting of the Joint Audit Committee (JAC) in January in Florida. The committee performed its annual review of the JAC audit programs and proposed several updates. The most significant changes were the addition of anti-money laundering and security futures products programs. NFA's modules were used as a model for these JAC programs.

The JAC also discussed the CFTC's revamped inspection program for SROs. The CFTC representatives reviewed with the JAC their draft inspection guide and fielded numerous questions from the committee about certain topics the CFTC plans to address in its new program.