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Registration Rules



RULE 204. REGISTRATION OF FUTURES COMMISSION MERCHANTS, NOTICE FUTURES COMMISSION MERCHANTS, RETAIL FOREIGN EXCHANGE DEALERS, INTRODUCING BROKERS, NOTICE INTRODUCING BROKERS, COMMODITY POOL OPERATORS, COMMODITY TRADING ADVISORS AND LEVERAGE TRANSACTION MERCHANTS AND CONFIRMATION OF EXEMPTION FROM REGISTRATION PURSUANT TO COMMISSION REGULATION 30.5.
[Adopted effective April 4, 1998. Effective dates of amendments: June 8, 1988; September 29, 1989; January 1, 1990; July 1, 1992; September 21, 1993; October 5, 1994; June 7, 1996; September 17, 2001; November 17, 2001; May 31, 2002; July 21, 2003; December 15, 2003; August 1, 2007; and September 30, 2010.]

(a) Application for Registration or Exemption from Registration.

    (1)(A) Each person applying for registration as an FCM, RFED, IB, CPO, CTA or LTM must:

      (i) file a Form 7-R, completed and filed in accordance with all pertinent instructions;
      (ii) pay the fee required by Rule 203(a); and
      (iii) file an Acknowledgement of Conditioned Registration executed by the sponsor if the applicant is subject to a Commission or NFA order imposing conditions on its registration.

    (B) Each application for registration as an FCM or an IB also must be completed and filed in accordance with CFTC Regulation 1.10.

    (C) Each application for registration as a CPO also must be completed and filed in accordance with CFTC Regulation 4.13(c).

    (D) Each application for registration as an LTM also must be completed and filed in accordance with CFTC Regulation 31.13.

    (E) Each application for registration as an RFED also must be completed and filed in accordance with CFTC Regulation 5.12.

    (2)(A) Each applicant for registration as an FCM, RFED, IB, CPO, CTA or LTM must have at least one individual principal affiliated with it and for each of its individual principals must:

      (i) file a Form 8-R completed and filed in accordance with all pertinent instructions;
      (ii) pay the fee required by Rule 203(a); and
      (iii) file the fingerprints of each individual principal on a fingerprint card provided by NFA for that purpose, unless the principal qualifies for an exemption from the fingerprinting requirement pursuant to Rule 209.

    (B) Each individual principal must verify the completeness and accuracy of the information contained in his Form 8-R.

    (C) The provisions of paragraphs (a)(2)(A)(ii) and (iii) and (a)(2)(B) do not apply to an individual principal who has a current active status at the time the applicant files the individual principal's Form 8-R.

    (3) When NFA determines that an applicant for registration as an FCM, RFED, IB, CPO, CTA or LTM and all of its principals appear fit for registration, NFA will provide notification to the applicant that the applicant's registration is granted.

    (4)(A) A broker or dealer that is registered with the Securities and Exchange Commission ("SEC") shall be registered as an FCM or IB upon the filing of a written Notice Form 7-R, completed and filed with NFA in accordance with all pertinent instructions, if: the broker or dealer limits its solicitation of orders, acceptance of orders, or execution of orders, or placing of orders on behalf of others involving any contracts of sale of any commodity for future delivery, on or subject to the rules of any contract market or registered derivatives transaction facility, to security futures products as defined in Section 1a(32) of the Act; the registration of the broker or dealer is not suspended pursuant to an order of the SEC; and the broker or dealer is a member of a national securities association registered pursuant to Section 15A of the Securities Exchange Act of 1934 and that membership is not suspended.

    (B) Such registration shall be terminated immediately if any of the above-stated conditions set for registration in this paragraph are no longer satisfied. The provisions of paragraphs (a)(1)-(3) of this Rule do not apply to applicants filing a Notice Form 7-R in accordance with this paragraph.

    (5)(A) Each person applying for exemption from registration as a IB, CPO or CTA pursuant to the provisions of CFTC Regulation 30.5 must:

      (i) file a Form 7-R, completed and filed in accordance with all pertinent instructions;

      (ii) file the written agreement in the form specified in CFTC Regulation 30.5(a), provided that if the agreement is between the applicant and NFA, the agreement shall be an electronic agreement; and

      (iii) pay the fee required by Rule 203(a)(13).

    (B) Each IB, CPO or CTA applying for exemption or confirmed as exempt from registration pursuant to CFTC Regulation 30.5 shall promptly notify NFA in the event that the agreement in paragraph (a)(5)(A) of this Rule is terminated. Each IB, CPO or CTA confirmed as exempt from registration pursuant to CFTC Regulation 30.5 will be deemed to have requested a withdrawal of its confirmation of exemption from registration pursuant to CFTC Regulation 30.5 effective 30 days after the termination of such agreement unless it files a new agreement in accordance with paragraph (a)(5)(A), and NFA shall notify the IB, CPO or CTA confirmed as exempt from registration pursuant to CFTC Regulation 30.5 accordingly.

(b) Withdrawal of Application. Failure of an applicant to respond to a written or electronic request by NFA for clarification of application information, to resubmit fingerprints of a principal in accordance with such request, or to pay the required registration fees pursuant to Rule 203(a) shall be deemed to constitute a withdrawal of the applicant's Form 7-R and shall result in the immediate termination of an IB applicant's temporary license, and NFA shall notify the applicant accordingly.

(c) Duration of Registration.

    (1) A person who becomes registered as an FCM, RFED, IB, CPO, CTA or LTM in accordance with this Rule shall continue to be so registered until the effective date of any revocation or withdrawal of such registration. Such person is prohibited from engaging in activities requiring registration under the Act or from representing himself to be a registrant under the Act or the representative or agent of a registrant during the pendency of any suspension of such registration.

    (2) A person registered as an IB who was a party to a guarantee agreement with an FCM or an RFED in accordance with CFTC Regulation 1.10(j) will be deemed to have requested a withdrawal of its registration effective 30 days after the termination of such guarantee agreement unless the procedures set forth in CFTC Regulation 1.10(j)(8) are followed.

(d) Annual Filing and Registration Records Maintenance Fees.

    (1) On an annual basis, NFA shall send a notice to each FCM, RFED, IB, CPO, CTA, and LTM registered in accordance with paragraph (a)(1) of this Rule advising each that it must electronically file an Annual Registration Update by a specified date. NFA shall also send an invoice to each FCM, RFED, IB, CPO, CTA, and LTM registered in accordance with paragraph (a)(1) of this Rule or confirmed as exempt from registration in accordance with paragraph (a)(5) of this Rule or pursuant to CFTC Regulation 30.10 requesting payment of the annual registration records maintenance fee set forth in Rule 203(a) and any other outstanding registration fees. NFA shall deem the failure to file the Annual Registration Update or to pay the required annual registration records maintenance fee and any other outstanding registration fees within 30 days following the specified date a request to withdraw from registration or to withdraw the confirmation of the exemption pursuant to CFTC Regulation 30.5 or CFTC Regulation 30.10, and shall notify the registrant or IB, CPO or CTA confirmed as exempt from registration pursuant to CFTC Regulation 30.5 or CFTC Regulation 30.10 accordingly.

    (2) Each FCM, RFED, IB, CPO, CTA, and LTM registered in accordance with paragraph (a)(1) of this Rule or confirmed as exempt from registration in accordance with paragraph (a)(5) of this Rule or pursuant to CFTC Regulation 30.10 whose registration or confirmation of exemption is withdrawn pursuant to this Rule may request, within 60 days of the withdrawal date, to have its registration or confirmation of exemption reinstated. Reinstatement requests received between 30 and 60 days from the withdrawal date are subject to the Reinstatement Fee as set forth in Rule 203(a). Provided that NFA receives all fees, including the required reinstatement fee and the annual registration records maintenance fee as set forth in Rule 203(a), and any other outstanding registration fees within 60 days of the withdrawal date, NFA shall reinstate the registration or confirmation of exemption. If the withdrawal was due in whole or in part to the failure to file the Annual Registration Update, the registration will be reinstated but will be subject to a deemed request to withdraw such registration. The failure to file the Annual Registration Update within 30 days following the reinstatement date shall result in the withdrawal of registration. Only one request for reinstatement may be made annually.

 
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