Compliance Rules

Part 3 - Compliance Procedures

RULE 3-1. MEMBER OVERSIGHT DEPARTMENT.

[Effective date of amendments: March 18, 1994; September 30, 2019, July 1, 2024 and March 18, 2026.]

(a) Duties.

There is hereby established a Member Oversight Department, which shall conduct examinations, and shall investigate violations of NFA requirements, prepare reports and conduct prosecutions, as provided in this Part. The Member Oversight Department shall commence investigations based on referrals from the Commission, or upon the discovery or receipt of information by NFA (such as complaints from customers or Members) that, in the Member Oversight Department's opinion, indicates a possible basis for finding that a violation has occurred; or on the Member Oversight Department's own initiative. The Member Oversight Department shall have the authority to compel testimony, subpoena documents and require statements under oath from any Member, Associate or person connected therewith.

(b) Prohibitions.

NFA staff may not be a Member or Associate or have any connection, direct or indirect, with a Member or Associate, except as approved by the President. Except with the President's approval, NFA staff shall not trade, directly or indirectly, any commodity interest. For purposes of this Rule 3-1(b), a commodity interest shall be defined as any commodity futures or commodity option contract traded on or subject to the rules of a contract market or linked exchange, or cash commodities traded on or subject to the rules of a board of trade which has been designated as a contract market.