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Proposed Rule

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Proposed Amendments
(Additions are underscored and deletions are stricken)

BYLAW 301. REQUIREMENTS AND RESTRICTIONS.

(a) Eligibility for Membership.

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No person, unless eligible for membership in the contract market category, shall be eligible to become or remain a Member unless at least one of its principals is registered as an "associated person" under the Act and Commission Rules.

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A person may be deemed disqualified to become or remain a Member or associated with a Member-

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(xvi) Any principal has been or could be refused membership: Provided, however, that for the purposes of this Bylaw, "principal" shall mean if the person is a partnership, any general partner or, if the person is a corporation, any officer, director, or beneficial owner of at least 10 percent of the voting shares of the corporation, and any other person that the Commission, by rule, regulation, or order, or NFA, by Bylaw or Resolution of the Board, determines has the power, directly or indirectly, through agreement or otherwise, to exercise a controlling influence over the activities of such person which are subject to regulation by the Commission and NFA requirements any entity or individual defined as "principal" in NFA Registration Rule 101.

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(f) Application.

(i) All applications to become a Member or to register as an Associate shall be ~~in writing on forms prescribed by the Membership Committee, signed by the applicant or its chief executive officer or managing partner, and accompanied by payment of~~ filed electronically and provide such information as required by the Membership Committee. The Member or applicant for membership shall file all applications for itself and its Associates by accessing NFA’s registration and membership database in the manner provided by NFA. Each Member or applicant for membership shall designate the person or persons authorized to file its application and the applications of its Associates. NFA may require any individual applying for registration as an Associate to electronically verify the information contained in the application. Applicants for registration as Associates may not authorize any other person to make such verification on their behalf. Each applicant for membership shall pay such application fee as the Membership Committee may prescribe from time to time.

(ii) The ~~execution and delivery~~ electronic filing of the application or verification of the information contained in the application shall constitute:

(A) a representation that the information supplied in the application is complete and accurate; ~~, and~~

(B) a representation that the applicant or Member has authorized the person filing the application to make such filing and all representations and agreements required by this paragraph; and

(C) an express agreement by the applicant that, if admitted to NFA membership or registered as an Associate, the applicant shall become and remain bound by all NFA requirements as are then and thereafter in effect and that such agreement shall apply each time the applicant becomes a Member or Associate.

(iii) An application may be returned by the Secretary of NFA without action if it is materially incomplete or materially inaccurate.

(iv) ~~Each application, together with~~ Database Security.

(A) No applicant, Member or Associate may access NFA’s electronic registration and membership database until NFA has assigned it a unique identifying code and password;

(B) Each applicant, Member and Associate is responsible for maintaining the security and confidentiality of its identifying code and password and those of the persons whom it authorizes, if permitted, to make electronic registration filings on its behalf. NFA’s electronic registration and membership database shall record and store the identifying code of each person accessing NFA’s database and shall logically associate in the database such identifying code with any electronic filing made by the person using such identifying code. The person whose identifying code is used to make an electronic filing will be deemed to have made such filing;

(C) Each FCM, IB, CPO or CTA applicant or Member shall make available any person it has authorized to make or actually performing duties related to electronic filings, for testimony in court or before the Commission, NFA or any contract market or DTF regarding the authentication, integrity or accuracy of any electronic filing; and

(D) The ability to electronically access NFA’s registration and membership database is a privilege and not a right. NFA may disable any person’s identifying code and password and terminate the person’s ability to access the database at any time, without notice or a hearing, in NFA's sole discretion, if NFA believes that the person has not complied with this Bylaw or any procedures that NFA establishes to implement this Bylaw.

(v) Aany required application fee shall be sent to the Secretary for processing, in accordance with such procedures as shall be adopted by the Membership Committee.

(vi) As soon as practicable after the application is received and reviewed, the Secretary shall notify the applicant of the action taken (See paragraph (g) below).

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