Proposed Rule

(e) Forex Dealer Members.

(i) Each Forex Dealer Member shall pay to NFA annual dues in the amount provided under section (b)(ii) of this bylaw plus a surcharge of $44,375 $14,375 if its gross annual revenue from the activities described in Bylaw 306(a) is $500,000 or less, a surcharge of $69,375 $24,375 if its gross annual revenue from those activities is more than $500,000 but not more than $2,000,000, a surcharge of $94,375 $44,375 if its gross annual revenue from those activities is more than $2,000,000 but not more than $5,000,000, and a surcharge of $119,375 $94,375 if its gross annual revenue from those activities is more than $5,000,000. These dues replace the dues that would otherwise be payable based on the Forex Dealer Member's registration category.

(ii) Each Forex Dealer Member that is subject to discipline for the activities of solicitors and account managers shall pay a separate annual fee as follows payable on the firm's annual renewal date-for 1 to 4 solicitors and account managers, the fee is $5,000; for 5 to 19 solicitors and account managers the fee is $10,000; for 20 to 99 solicitors and account managers the fee is $25,000; and for 100 or more solicitors and account managers the fee is $50,000. In determining whether this fee applies, a Forex Dealer Member must calculate the highest number of solicitors and account managers it was responsible for at any one point of time during the year. This number does not include solicitors and account managers that are Members of NFA, meet the criteria in Bylaw 306(b), or would be exempt from Commission registration if they were acting in the same capacity in connection with exchange-traded futures contracts.

(iii) Each Forex Dealer Member shall pay an assessment of .0001% on the notional value of each initiating (non-rollover) forex transaction (as forex is defined in Bylaw 1507(b)). For transactions with a notional value less than $10,000, the Forex Dealer Member may aggregate separate transactions and pay $.01 on each multiple of $10,000.

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BYLAW 1302. PAYMENT OF DUES AND ASSESSMENTS.

Annual dues and fees shall be payable in advance on the first day of January of each year, or at such other time or times as the Board shall determine. Members paying dues or fees after the date they such dues are payable shall be subject to a late payment charge of $25 per month or portion thereof. Assessments based upon futures or forex transactions shall be payable to NFA within 30 days after the end of each month for transactions effected during that month. In addition to such assessments each FCM, Forex Dealer Member, and LTM shall pay to NFA an amount equal to one month's interest at an annual rate of 10 percent (or such other rate of interest as the President, with the concurrence of the Executive Committee, may determine from time to time) on the amount of any such assessment payable by that FCM or LTM Member for every month or fraction thereof such assessment payment is late. If a Member claims overpayment of its assessments based upon futures or forex transactions, the Member may request a refund at any time prior to the end of the 18th calendar month following the due date for payment of assessments for the month with respect to which such claimed overpayment was made. After that time, no refunds, adjustments or offsets will be made or allowed. Except as the Board may otherwise provide by resolution, each Member shall pay dues and assessments, as applicable, for each category in which the Member-or an affiliate thereof, unless such affiliate is a Member in its own right-is registered with the Commission and conducts business.

BYLAW 1303. DEFAULT AND DEEMED REQUEST TO WITHDRAW MEMBERSHIP.

When any Member shall be in default in the payment of dues or annual fees for a period of 30 days or assessments or audit fees for a period of three months after such dues, annual fees, assessments or audit fees became payable, NFA shall deem that Member's non-payment of dues, annual fees, assessments or audit fees to be a request to withdraw from NFA membership and shall notify that Member accordingly. NFA may provide the notice required by this Bylaw electronically.

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INTERPRETIVE NOTICES

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FOREX TRANSACTIONS

INTERPRETIVE NOTICE

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C. OTHER REQUIREMENTS

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1. Bylaw 1301

Forex Dealer Members are not required to pay assessment fees on forex transactions. Instead, NFA Bylaw 1301(e) requires Forex Dealer Members to pay imposes annual dues that are graduated according to the firm's gross annual revenue from customers (e.g., commissions, mark-ups, mark-downs) for its forex these activities. Profits and losses from proprietary trades are not to be included. To calculate dues:

• Start with the FCM dues imposed by NFA Bylaw 1301(b)(ii);

• Add $44,375 $14,375 if the Forex Dealer Member's gross annual revenue from forex transactions is $500,000 or less;

• Add $69,375 $24,375 if the Forex Dealer Member's gross annual revenue from forex transactions is more than $500,000, but not more than $2,000,000;

• Add $94,375 $44,375 if the Forex Dealer Member's gross annual revenue from forex transactions is more than $2,000,000, but not more than $5,000,000; or

• Add $119,375 $94,375 if the Forex Dealer Member's gross annual revenue from these activities is more than $5,000,000.

The following table shows the dues to be assessed for Forex Dealer Members:

Amount of annual Gross Revenue From Forex Transactions	Dues if NFA is the DSRO	Dues if NFA is not the DSRO
$500,000 or less	$50,000$20,000	$45,875$15,875
More than $500,000, but not more than $2 million	$75,000$30,000	$70,875$25,875
More than $2 million, but not more than $5 million	$100,000 $50,000	$95,875 $45,875
More than $5 million	$125,000$100,000	$120,875$95,875

These dues apply when the Forex Dealer Member offers to be a counterparty to a forex transaction or accepts a forex trade (whichever is earlier), and NFA will send the Member an invoice for the minimum dues ($50,000 $20,000 or $45,875 $15,875) minus any amount already paid for that membership year. Thereafter, the dues will be assessed on the firm's membership renewal date and will be based on the Forex Dealer Member's latest certified financial statement.

Under NFA Compliance Rule 2-36(d), a Forex Dealer Member is subject to discipline for the activities of any person that solicits or introduces a customer to the Member or manages a customer's account unless that person is a Member or Associate of NFA, is otherwise regulated based on the criteria in Bylaw 306(b), or would be exempt from CFTC registration if it were acting in the same capacity in connection with exchange-traded futures contracts. Any Forex Dealer Member that is responsible under Compliance Rule 2-36(d) for solicitors and account managers is required to pay a separate annual fee on the firm's annual renewal date based on the number of unregulated solicitors and account managers. In determining whether this fee applies, the Forex Dealer Member should take the highest number of separate legal entities, including individuals acting as sole proprietors, that it was responsible for at any one time during the year. The following table shows this graduated fee.

Number of Unregulated Entities	Annual Fee
0	$         0
1-4	$ 5,000
5-19	$10,000
20-99	$25,000
100 or more	$50,000

Each Forex Dealer Member is also required to pay an assessment of .0001% on the notional value of each forex transaction (as forex is defined in Bylaw 1507(b)). This equates to $.01 for each $10,000. For transactions with a notional value less than $10,000, the firm may aggregate separate transactions and pay $.01 on each multiple of $10,000. For transactions of $10,000 or above, the firm should round to the nearest cent.

This assessment is due only on initiating transactions. There is no assessment on rollovers, offsetting transactions, option expirations, or option exercises that do not result in new positions. The Member must remit the assessment to NFA within 30 days after the end of the month in which the transaction was initiated.

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