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Compliance Rules



RULE 1-1. DEFINITIONS.
[Effective date of amendments: April 7, 1982; July 27, 1983; January 14, 1988; September 29, 1989; July 24, 2000; August 21, 2001; May 1, 2004; February 13, 2007; and October 18, 2010.]

(a) "Act" -means the Commodity Exchange Act.

(b) "Actual Funds" - means the equity in a commodity trading account over which a CTA has trading authority and funds that can be transferred to that account without the client's consent to each transfer.

(c) "Appeals Committee" -means the Appeals Committee established under NFA Bylaw 702.

(d) "Associate" -means a person who is associated with a Member within the meaning of the term "associated person" as used in the Act and Commission Rules and who is required to be registered as an "associated person" with the Commission

(e) "Business Conduct Committee" -means the Business Conduct Committee established under NFA Bylaw 704.

(f) "Commission" or "CFTC" -means the Commodity Futures Trading Commission.

(g) "Commodity Pool Operator" or "CPO" - means a person who is required to register or is registered as a commodity pool operator under the Act and Commission Rules.

(h) "Commodity Trading Advisor" or "CTA" - means a person who is required to register or is registered as a commodity trading advisor under the Act and Commission Rules.

(i) "Contract Market" -means an exchange designated by the Commission as a contract market in one or more commodities or licensed by the Commission for the trading of options.

(j) "Exchange Act" - means the Securities Exchange Act of 1934.

(k) "Foreign Board of Trade" -means a board of trade, exchange, or market located outside the United States, its territories or possessions.

(l) "Foreign Futures" and "Foreign Options" -means futures and options transactions made or to be made on or subject to the rules of a foreign board of trade.

(m) "Foreign Futures or Foreign Options Customer" -means any person located in the United States, its territories or possessions who trades in foreign futures or foreign options.

(n) "Forex" - has the same meaning as in Bylaw 1507(b).

(o) "Forex Dealer Member" - has the same meaning as in Bylaw 306.

(p) "Futures" includes-

    (1) futures and option contracts traded on a contract market;

    (2) option contracts granted by a person that has registered with the Commission under Section 4c(d) of the Act as a grantor of such option contracts or has notified the Commission under the Commission's rules that it is qualified to grant such option contracts;

    (3) foreign futures and foreign options made or to be made on or subject to the rules of a foreign board of trade for or on behalf of foreign futures or foreign options customers as those terms are defined in the Commission's rules;

    (4) leverage transactions as that term is defined in the Commission's rules; and

    (5) security futures products, as that term is defined in Section 1a(32) of the Act.

(q) "Futures Commission Merchant" or "FCM" -means a person who is required to register or is registered as a futures commission merchant under the Act and Commission Rules.

(r) "Hearing Committee" - means the Hearing Committee established under NFA Bylaw 707.

(s) "Introducing Broker" or "IB" -means a person who is required to register or is registered as an introducing broker under the Act and Commission Rules.

(t) "Leverage Transaction Merchant" or "LTM" -means a person who is required to register or is registered as a leverage transaction merchant under the Act and Commission Rules.

(u) "Member" -means a Member of NFA other than a contract market.

(v) "Nominal Account Size" - means the account size agreed to by the client that establishes the level of trading in the particular trading program.

(w) "Partially-Funded Account" - has the same meaning as in CFTC Regulation 4.10(m).

(x) "Person" - includes individuals, corporations, limited liability companies, partnerships, trusts, associations and other entities.

(y) "Qualified Eligible Person" or "QEP" - has the same meaning as in CFTC Regulation 4.7(a).

(z) "Requirements" - includes any duty, restriction, procedure or standard imposed by a charter, bylaw, rule, regulation, resolution or similar provision.

(aa) “Retail Foreign Exchange Dealer” or “RFED” — means a retail foreign exchange dealer as that term is used in the Commodity Exchange Act, and that is required to be registered as such under the Act and Commission Rules.

(bb) "Security Futures Products" - has the same meaning as in Section 1a(32) of the Act.

 
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