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Proposed Amendments

Proposed amendments to NFA Code of Arbitration
(additions are underscored and deletions are [bracketed]):

CODE OF ARBITRATION

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SECTION 6. INITIATION OF ARBITRATION

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    (d) Notice to Respondent.

(1)NFA shall promptly serve a copy of the completed Demand for Arbitration on each person named therein as a Respondent, and a copy of any agreement to arbitrate.

(2) If a guaranteed IB is named in the Demand for Arbitration as a Respondent, NFA shall promptly serve a copy of the completed Demand for Arbitration on the Member FCM that guaranteed the IB during the time of the acts or transactions involved in the claim. That Member FCM may intervene in the arbitration proceeding if it chooses to.

    (e) Answer to a Demand for Arbitration

The Respondent shall serve an Answer on NFA within 45 days from the date of service of the Demand for Arbitration on the Respondent by NFA. The Respondent shall concurrently serve a copy of the Answer on the Claimant. Any Member FCM served with the Demand for Arbitration under Section 6(d)(2) above that wishes to intervene in the arbitration proceeding must serve an Answer and written notice of intervention on NFA within 45 days from the date of service of the Demand for Arbitration on the Member FCM by NFA. The Member FCM shall concurrently serve a copy of the Answer and notice of intervention on the Claimant. An allegation in the Demand for Arbitration that is not denied in the Answer shall be deemed by the Panel to be admitted.

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    (l) Late Answer, [or] Reply or Notice of Intervention.

NFA shall accept any Answer or Reply filed prior to the hearing. However, NFA or any party may present an objection to the Panel with regard to the timeliness of any filing. NFA will not accept a late notice of intervention unless the party filing the late notice explains in writing its reasons for the lateness and obtains the Panel's consent to file the late notice.

SECTION 8. PRE-HEARING.

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(f) Pre-hearing Decisions by the Arbitrators.

With the consent of the other Panel members, one or more of the arbitrators may act on behalf of the Panel to decide any pre-hearing motions from the parties or to conduct any discovery or hearing plan conference with the parties. However, the Panel may not postpone the hearing, [or] impose sanctions, dismiss a party, or dismiss all or any portion of a claim without a majority decision.

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SECTION 10. AWARD, SETTLEMENT AND WITHDRAWAL.

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    (c) Finality.

The Panel's award shall be final on the date thereof. The award may be modified by the Panel if a party submits a written request for modification which is received by NFA within 20 days from the date of service of an award on the parties, and the Panel deems modification necessary because;

    (1) there is an evident material miscalculation of figures or an evident material mistake in the description of any person, thing or property referred to in the award;

    (2) the arbitrators have awarded upon a matter not submitted to them, unless it is a matter to affecting the merits of the decision upon the matter submitted; or rendered an award on a matter not submitted to them; or

    (3) the award is imperfect in matter of form not affecting the merits of the controversy.

NFA will not forward a modification request to the Panel unless it is based on one of the grounds listed above. The timely filing of a request for modification shall stay automatically the finality of any award until NFA rejects the request or the Panel either modifies the award or denies the request for modification.

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SECTION 19. NFA'S AUTHORITY TO INTERPRET THE CODE.

NFA has the authority to interpret the provisions of this Code.

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