Member Newsletter

NFA to hold Town Hall Meeting in Ft. Lauderdale, Florida
As part of our continuing commitment to provide an open discussion of current regulatory issues with our Members, NFA is holding a Town Hall Meeting on October 30, 2002 in Ft. Lauderdale, Florida. The meeting will run from 4:00 to 6:00 p.m. at the Embassy Suites located at 1100 SE 17th.

We will discuss several topics selected from feedback we received from our Members including security futures products, promotional materials, anti-money laundering and forex. We are offering this program to our Members free of charge and registration is available on NFA's Web site at www.nfa.futures.org.

Senior Compliance staff members will be on hand at the Town Hall Meeting to address the above topics as well as answer any other questions participants may have.

NFA's Election Process Begins
On September 10, 2002, NFA sent a Notice notifying all Members of the elected Directors and members of the Nominating Committee whose terms expire at the Annual Election. The Notice also requested that the names of eligible persons to fill those positions be submitted to the Nominating Committee by October 4.

In early November, NFA will notify our Members of the nominations made by the 2002 Nominating Committee for the seven open positions on NFA's Board of Directors and the three open positions on the 2003 Nominating Committee. If there is a contested election, NFA will send ballots to all Members in the appropriate categories in mid-December. Ballots must be returned no later than January 21, 2003. NFA will post the results of the election on its Web site shortly after January 21.

In late 2001, NFA's Board of Directors voted to reduce its size from 45 Directors to 25 Directors in order to operate more efficiently in a rapidly changing business environment and to support quick and efficient decision making.

NFA/FSA exchange program
On Monday, September 16, NFA and the Financial Services Authority (FSA) officially began a three-month exchange program developed to promote information sharing, communication and cooperation between international regulators. FSA representative Felicity Benson is working at NFA's offices in Chicago, while NFA Compliance Team Manager Joe Patrick works at FSA's headquarters in London.

FSA is an independent non-government "super-regulator" in the United Kingdom with enforcement powers over the entire financial services industry, including securities and futures brokerage firms, banks, insurance companies, etc. Because of the breadth of their regulatory responsibilities, over 11,000 firms fall under the jurisdiction of FSA oversight.

"We believe that the exchange program assists our Members who operate in this global arena and helps the regulators understand the methodologies used in different countries," says NFA Senior Vice President Yvonne Downs.

Exchange participant Patrick says, "I thought we could benefit greatly from sharing information about what our respective organizations do, our processes, what works well, what doesn't and the challenges both organizations face. I look forward to bringing some of their expertise back with me."

Patrick and Benson will return to their respective offices on December 13, 2002 where they will share their experiences with their organizations, helping to form a strategic alliance between the two regulators.

NFA to participate in the 18th Annual FIA Futures and Options Expo
NFA is sponsoring a booth (#426) at the Futures Industry Association's 18th Annual Futures and Options Expo on November 6-8 at the Hyatt Regency Chicago. NFA staff members from several key departments will provide online demonstrations of NFA's new Online Registration System (ORS) and the Background Affiliation Status Information Center (BASIC). They will also be available to answer questions concerning security futures products, anti-money laundering, the Privacy Act and other issues facing NFA Members.

The FIA Expo showcases products, services and information for market professionals and participants from more than 100 companies from around the world. It also offers a variety of sessions that allow participants to discuss industry trends, hear expert views on key issues, improve trading skills and learn about new products, systems and practices.