Notices to Members

November 07, 2001

NFA Announces 2001 Nominating Committee Recommendations

Effective October 15, 2001, NFA’s Articles of Incorporation were amended to reduce the size of NFA’s Board of Directors from 45 Directors to 25 Directors. Effective February 2002, all of the current Directors’ terms will expire. In accordance with Bylaw 406, the Office of the Secretary has received from the 2001 Nominating Committee a list of its nominees for positions on NFA’s Board of Directors and 2002 Nominating Committee. The list of nominees included with this notice shall serve as notification to NFA Members of the candidates proposed by the 2001 Nominating Committee.

Other nominations may be made by petition. Article VII, Section 3(b) of NFA’s Articles of Incorporation provides that:

“Nominations may be made for elected FCM and LTM, IB, and CPO and CTA Director positions by:

(i)Petition signed by 50 or more NFA Members* in the category for which the nomination is made (i.e., FCM and LTM, IB, and CPO and CTA); or

(ii)Petition submitted by any organization or association recognized by NFA as fairly representing the category ... for which the nomination is made.

Petitions shall be submitted in the manner specified by the Bylaws. No petition may nominate more than one candidate for the same position.”

Article X, Section 3 of NFA’s Articles of Incorporation similarly permits nominations for the Nominating Committee by petition.

NFA Bylaw 406 requires that each petition identify the position to which the nomination pertains, and that all petitions must be received by the Secretary within 21 days of the date of this Notice. If you wish to submit additional nominations by petition, please make sure that petition candidates meet the category requirements of Articles VI, VII & X, and that such petitions are received by the Secretary on or before November 28, 2001. Petitions received after that date will not be considered.

Petitions should be forwarded to:
National Futures Association
Attn: Thomas W. Sexton
200 West Madison Street, Suite 1600
Chicago, Illinois 60606-3447

If you have any questions, please contact Tony Rose at (312) 781-1469.

* Section 2 of Article VI of the Articles of Incorporation provides that for purposes of signing nomination petitions, a Member will be deemed to be a Member “only in that single category to which its business activities primarily relate.”

FCM
Effective February 2002, FCM representation on the Board will be reduced from 14 Directors to 8 Directors. Of the 8 FCM seats on NFA’s Board, 4 are reserved for FCMs that are ranked in the top ten FCMs based on the total amount of segregated funds and secured amounts as of June 30th preceding the election. The remaining 4 seats are reserved for FCMs that are not ranked in the top ten FCMs.

Board of Directors – Top Ten FCMs – 4 vacancies

Nominees
Bonnie Litt
Managing Director & Associate General Counsel
Goldman Sachs & Co.

Joseph J. Murphy
President
Refco LLC

Ronald S. Oppenheimer
First Vice President & General Counsel
Futures & Options
Merrill Lynch & Co.

Michael R. Schaefer
Executive Vice President
Salomon, Smith Barney, Inc.

David C. Sturm
Vice President
J.P. Morgan Futures, Inc.

Board of Directors – Other FCMs – 4 vacancies

Nominees
Richard A. Beech
Executive Director
Morgan Stanley, DW, Inc.

W. Robert Felker
President & Chief Executive Officer
Banc One Capital Markets, Inc.

James A. Gary
Executive Vice President
Director of Futures
ABN AMRO Incorporated

Douglas O. Kitchen
Managing Director
Rosenthal Collins Group LLC

Charles P. Nastro
Managing Director
Director of Futures
Lehman Brothers, Inc.

Jan R. Waye
Senior Vice President
Cargill Investor Services, Inc.

Nominating Committee – 1 vacancy

Nominee
Edward Z. Kassakian
President
Carr Futures, Inc.

IB
Effective February 2002, IB representation on the Board will be reduced from 3 Directors to 2 Directors. Of the 2 IB seats on NFA’s Board, 1 is reserved for Guaranteed IBs and 1 is reserved for Independent IBs.

Board of Directors – Guaranteed IBs – 1 vacancy

Nominee
Paul J. Georgy
President
Allendale, Inc.

Board of Directors – Independent IBs – 1 vacancy

Nominee
John A. Vassallo
President
Coquest Incorporated

Nominating Committee – 1 vacancy

Nominee
Norton B. Rixey, Jr.
President
Central States Commodities, Inc.

CPO & CTA
Effective February 2002, CPO and CTA representation on the Board will be reduced from 6 Directors to 4 Directors. Of the 4 CPO and CTA seats on NFA’s Board, at least 2 are reserved for CPOs or CTAs that rank in the top 20% of CPOs or CTAs with funds under management allocated to futures.

Board of Directors

Nominees
Thomas F. Basso
Chief Executive Officer
Trendstat Capital Management, Inc.

Douglas L. Bry
President
Northfield Trading LP

George E. Crapple
Co-Chairman
Millburn Ridgefield Corp. *

Robert E. Murray
President
Demeter Management Corporation *

* Within top 20% of CPOs or CTAs with funds under management allocated to futures.