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.
Code of Arbitration
SECTION 2. ARBITRABLE DISPUTES.
[Effective dates of amendments: April 11, 1983; June 28, 1985; November 9, 1988; June 12, 1989; January 1, 1990; February 18, 1992; September 8, 1992; May 17, 1993; May 1, 1994; March 1, 2002; September 9, 2002; December 15, 2003; and October 18, 2010.]
(a) Mandatory Arbitration.
(1) Claims. Except as provided in Sections 5 and 6 of this Code with respect to timeliness requirements, the following disputes shall be arbitrated under this Code if the dispute involves commodity futures contracts:
(i) a dispute for which arbitration is sought by a customer against a Member or employee thereof, or Associate, provided that:
(A) the customer is not an FCM, floor broker, Member or Associate;
(B) the dispute does not solely involve cash market transactions that are not part of or directly connected with a commodity futures transaction; and
(C) if brought against a Member or employee thereof, the Member is an FCM, an RFED, an IB, a CPO, a CTA or an LTM.
(ii) a customer claim that is required to be arbitrated by NFA under a lawful agreement that complies with Commission Rule 166.5.
(iii) a customer claim whose resolution has been delegated to NFA by a contract market.
(2) Counterclaims, Cross-claims and Third-party Claims. Except as provided in Sections 5 and 6 of this Code with respect to timeliness requirements, a counterclaim, cross-claim or third-party claim may be asserted in an arbitration brought under this Code if the counterclaim, cross-claim or third-party claim arises out of an act or transaction that is the subject of the Arbitration Claim.
(b) Disputes Which May Be Arbitrated in the President's Discretion.
(1) At the option of any party, the securities portion of a dispute involving unrelated futures and securities claims may, in the President's discretion, be arbitrated under this Code if the timeliness requirements of Sections 5 and 6 of this Code are met.
(2) Except as required by the Member Arbitration Rules, other disputes involving commodity futures contracts between or among customers, Members, or Associates may, in the President's discretion, be arbitrated under this Code if the parties agree or have agreed to such arbitration and the timeliness requirements of Sections 5 and 6 of this Code are met.