Notices to Members

September 17, 2002

The NFA Assessment Fee for Total Return Asset Contracts ("TRAKRS^sm")

TRAKRS^sm are cash-settled, electronically traded futures contracts in broad-based indices of stocks, bonds, currencies and other financial instruments that began trading at the Chicago Mercantile Exchange ("CME") in late July 2002. The TRAKRS^sm contracts began trading with a notional value amount of $25.00. Customers may carry TRAKRS^sm positions in both futures and securities accounts.

At its August 15, 2002 meeting, NFA's Board of Directors decided that the current assessment fee level – even at the mini-contract rate – would be unduly burdensome if imposed upon this product due to the contract's micro value. Therefore, the Board interpreted NFA Bylaw 1301 to impose an assessment fee amount of .02¢ ($.0002) per contract on a round turn basis. FCMs offering this product should apply this assessment fee amount retroactively and remit the appropriate amount to NFA. For additional information and sample calculations for the TRAKRS^sm assessment fee, please see the NFA Interpretive Notice entitled "NFA Bylaw 1301: NFA Assessment Fee Questions and Answers for FCMs" available online at www.nfa.futures.org/compliance/manual/M11Interp_16.html.