Skip Navigation LinksHome > NFA Manual / Rules > NFA Rule

NFA Manual / Rules

Welcome to the online version of NFA's rulebook, the NFA Manual. We update this version on an ongoing basis. If you want to check out what changes have most recently been made to the NFA Manual, go to Recent Manual Updates.

Registration Rules



Rule 101. Definitions.
[Adopted effective April 4, 1988. Effective dates of amendments: January 1, 1990; September 21, 1993; August 1, 1994; November 17, 2001; May 31, 2002; September 30, 2010; July 18, 2012; and October 21, 2013.]

As used in these Registration Rules:

(a) "Acknowledgement of Conditioned Registration"-means a sponsor's or guarantor's representation that it meets the requirements set forth in Rule 509(b)(5) to sponsor a conditioned registrant; that it has reviewed the conditions contained in any current NFA or Commission order imposing conditions on the registration of the person; and that it will supervise the person in accordance with the conditions contained in the order. Acknowledgement of Conditioned Registration shall include any Supplemental Guarantor Certification Statement or Supplemental Sponsor Certification Statement that is required by the order.

(b) "Act"-means the Commodity Exchange Act, which is contained in Title 7 of the United States Code.

(c) "Applicant"-means a person seeking registration under the Act as an FCM, RFED, IB, CPO, CTA or LTM; an associated person of any of the foregoing; SD; MSP; floor broker ("FB") or floor trader ("FT").

(d) "Associated Person" or "AP"-means an associated person as that term is used in the Act and the regulations thereunder who is required to be registered as such under the Act.

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

(f) "Commodity Interest"-means: (1) any contract for the purchase or sale of a commodity for future delivery regulated under the Act and rules promulgated thereunder; and (2) any contract, agreement or transaction subject to Commission regulation under Sections 4c or 19 of the Act.

(g) "Current Active Status"- a person has a current active status if, subsequent to the filing of a previous Form 7-R or Form 8-R and continuously thereafter, the person has been either pending, registered, temporarily licensed or affiliated with a registrant as a principal.

(h) "Foreign Futures Authority"-means any foreign government or any department, agency, governmental body or regulatory organization empowered by a foreign government to administer or enforce a law, rule or regulation as it relates to a futures or options matter.

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

(j) "Form 7-R"-means the entire Form 7-R or any portions of the Form 7-R that NFA requires an applicant to file to obtain registration as an FCM, RFED, SD, MSP, IB, CPO, CTA or LTM.

(k) "Form 8-R"-means the entire Form 8-R or any portions of the Form 8-R that NFA requires to be filed for an individual to obtain registration as an AP, FB or FT or because an individual is a principal of an applicant or registrant.

(l) "Form 3-R"-means the entire Form 3-R or any portions of the Form 3-R that NFA requires to be filed to correct any inaccuracy or deficiency in an applicant's or registrant's registration information.

(m) "Form 7-W"-means the entire Form 7-W or any portions of the Form 7-W that NFA requires a registrant to file to withdraw from registration or to withdraw an application for registration as an FCM, RFED, SD, MSP, IB, CPO, CTA or LTM.

(n) "Form 8-T"-means the entire Form 8-T or any portions of the Form 8-T that NFA requires an applicant or registrant to file to notify NFA that an individual did not become or is no longer associated or affiliated with it as an AP, Branch Office Manager or principal.

(o) "Form 8-W"-means the entire Form 8-W or any portions of the Form 8-W that NFA requires a registrant to file to withdraw from registration as a FB or FT.

(p) "Membership Committee"-means an NFA Committee formed pursuant to NFA Bylaw 701. (p) "NFA"-means National Futures Association.

(q) "NFA"-means National Futures Association.

(r) "NFA Requirements"-means NFA Bylaws, Compliance Rules, Registration Rules, Financial Requirements, Code of Arbitration and Member Arbitration Rules.

(s) "Person"-means an individual, association, partnership, corporation, trust or any other form of business organization.

(t) "Principal"-means, with respect to an applicant, a registrant, or a person required to be registered under the Act:

    (1) an individual who is:

      (A) a proprietor of a sole proprietorship;
      (B) a general partner of a partnership;
      (C) a director, president, chief executive officer, chief operating officer, chief financial officer or a person in charge of a business unit, division or function subject to regulation by the Commission of a corporation, limited liability company or limited liability partnership;
      (D) a manager, managing member or a member vested with the management authority for a limited liability company or limited liability partnership; or
      (E) a chief compliance officer; or

    (2) an individual who directly or indirectly, through agreement, holding companies, nominees, trusts or otherwise:

      (A) is the owner of 10% or more of the outstanding shares of any class of an applicant or registrant's equity securities, other than non-voting securities;
      (B) is entitled to vote 10% or more of the outstanding shares of any class of an applicant or registrant's equity securities, other than non-voting securities;
      (C) has the power to sell or direct the sale of 10% or more of the outstanding shares of any class of an applicant or registrant's equity securities, other than non-voting securities;
      (D) is entitled to receive 10% or more of an applicant or registrant's net profits;
      (E) or has the power to exercise a controlling influence over an applicant or registrant's activities that are subject to regulation by the Commission; or

    (3) an entity that:

      (A) is a general partner of a partnership; or
      (B) is the direct owner of 10% or more of  the outstanding shares of any class of an applicant or registrant's equity securities, other than non-voting securities; or

    (4) an individual who or entity that:

      (A) has contributed 10% or more of an applicant's or registrant's capital unless such capital consists of subordinated debt contributed by:

        (i) an unaffiliated bank insured by the Federal Deposit Insurance Corporation;
        (ii) an unaffiliated "foreign bank," as defined in 12 CFR 211.21(n) that currently operates an "office of a foreign bank," as defined in 12 CFR 211.21(t), which is licensed under 12 CFR 211.24(a);
        (iii) such office of an unaffiliated, licensed foreign bank; or
        (iv) an insurance company subject to regulation by any State,

      provided such debt is not guaranteed by an individual who or entity that is not a principal of the applicant or registrant.

    (u) "Registrant"-means a person registered under the Act as an FCM, RFED, IB, CPO, CTA, LTM, an AP of any of the foregoing, SD, MSP, FB or FT.

    (v) "Rules"-means NFA Registration Rules.

    (w) "Swap AP"-means an associated person of an SD or MSP as defined in the Act and the regulations thereunder.

    (x) "Sponsor"-means the applicant or registrant FCM, RFED, SD, MSP, IB, CPO, CTA or LTM that files a Form 8-R for an individual associated with it to become registered as an AP or for an individual principal.

    (y) "Supplemental Guarantor Certification Statement ("SGCS")"-means a statement executed by an IB's guarantor wherein the guarantor indicates that it meets the requirements set forth in Rule 509(b)(5) to sponsor a conditioned IB and its willingness to supervise the IB subject to certain conditions imposed by NFA's President or its Membership Committee under these Rules or by the Commission.

    (z) "Supplemental Sponsor Certification Statement ("SSCS")"-means a statement executed by an AP's, FB's or FT's sponsor wherein the sponsor indicates that it meets the requirements set forth in Rule 509(b)(5) to sponsor a conditioned AP, FB or FT and its willingness to supervise the AP, FB or FT subject to certain conditions imposed by NFA's President or its Membership Committee under these Rules or by the Commission.

     
    NFA is the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the futures markets.