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Articles of Incorporation



ARTICLE I: NAME

The name of the Corporation shall be National Futures Association (hereinafter "NFA").



ARTICLE II: LOCATION

NFA's principal office shall be in Chicago, Illinois. NFA shall maintain a regional office in New York, New York and at such other locations as the Board of Directors (hereinafter "Board") may designate.



ARTICLE III: PURPOSES
[Effective dates of amendments: April 14, 1983; January 1, 1990; April 23, 2001; and April 1, 2013.]

Section 1: Fundamental Purposes.

Subject to the limitations in Section 2 of this Article, the fundamental purposes of NFA are to promote the improvement of business conditions and the common business interests of persons engaged in commodity futures and swaps or related activity by

    (i) undertaking the regulation of persons that are members of NFA (hereinafter "Members") as set forth in this Article;

    (ii) relieving the Commodity Futures Trading Commission (hereinafter "Commission") from the substantial burden of direct regulation in such matters; and

    (iii) providing such regulatory services to such markets as the Board may from time to time approve. Actions of NFA to effectuate these purposes may include:

    (a) Public Interest.

    The adoption, administration and enforcement as to the following persons of requirements regarding fair practice and designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade and, in general, to protect the public interest

      (i) Members that are registered with the Commission as Futures Commission Merchants, Commodity Pool Operators, Commodity Trading Advisors, Introducing Brokers, Leverage Transaction Merchants, Retail Foreign Exchange Dealers, Swap Dealers or Major Swap Participants; and

      (ii) Associates (See Article XVIII).

    (b) Financial Standards.

    Notwithstanding the provisions of Section 2(a) of this Article, the adoption with respect to its Members that are Futures Commission Merchants, Introducing Brokers, Leverage Transaction Merchants, Retail Foreign Exchange Dealers, Swap Dealers or Major Swap Participants of financial and related requirements designed to protect against insolvency, bankruptcy, or unsafe or unsound financial condition of such Members; the conduct, directly or through agents, of audits and reviews of the financial condition and related matters of such Members; and the adjudication and enforcement of compliance with NFA's financial and related requirements for all such Members, except as may otherwise be provided under Commission Regulations: Provided, however, it is expressly understood that Contract Markets and clearing organizations shall have the right to adopt, administer and enforce financial and related requirements governing the eligibility of Members for membership privileges on such Contract Markets or clearing organizations.

    (c) Arbitration.

    The adoption and administration of a fair and equitable procedure through arbitration or otherwise for the voluntary settlement of customers' claims or grievances against Members described in paragraph (a) above, their employees, and Associates, in accordance with Section 17(b)(10) of the Commodity Exchange Act (hereinafter the "Act"), or claims or grievances of such Members or Associates against customers, or claims or grievances between or among such Members or Associates: Provided, however, no such procedure shall apply to the settlement of a claim or grievance where the parties, by valid and binding agreement, have committed themselves to the resolution of such claim or grievance in a forum other than NFA, or where parties having claims or grievances between or among themselves are required by Contract Market rules to submit the controversy to the settlement procedures of such Contract Market.

    (d) Qualifications Standards.

    The adoption of appropriate standards with respect to such training, experience and other qualification requirements as NFA deems necessary and appropriate to insure the fitness of Members and Associates; the development and administration of written proficiency examinations of Members and Associates; and, with the approval of the Commission, the administration of the registration of Members, Associates and any other persons required to be registered with the Commission. Such requirements, examinations and registrations adopted by NFA with respect to Associates shall, with the consent of each Contract Market Member conducting comparable activities, replace and supplant the requirements, examinations and related activities theretofore conducted with respect to Associates by the Contract Market Member.

    (e) Protection of Customers.

    Notwithstanding the provisions of Section 2(a) of this Article, the adoption, administration and enforcement of uniform, industry-wide requirements regarding the dealings and relations between and among Members described in paragraph (a) above, Associates and the customers of such Members and Associates, including, without limitation, requirements governing the manner, method, and place of soliciting business, including the content of such solicitations and the form and manner of handling, recording, and accounting for customers' orders, transactions, and accounts.

    (f) Doing Business With Non-Members.

    The prohibition of Members from carrying accounts, accepting orders, or handling transactions, in commodity futures contracts, for or on behalf of any non-Member, or suspended Member, that is required to be registered with the Commission as a Futures Commission Merchant, Commodity Pool Operator, Commodity Trading Advisor, Introducing Broker or Leverage Transaction Merchant and that is acting in respect to the account, order, or transaction for a customer, a commodity pool or participant therein, a client of a commodity trading advisor, or any other person, unless

      (i) such non-Member is a member of another futures association registered under Section 17 of the Act or is exempted from this prohibition by the Board or

      (ii) such suspended Member is exempted from this prohibition by the Board or a committee thereof.

    The prohibition of Members from accepting orders in commodity futures contracts to cover leverage transactions, for or on behalf of any non-Member, or suspended Member that is required to be registered with the Commission as a Leverage Transaction Merchant, unless

      (i) such non-Member is a member of another futures association registered under Section 17 of the Act or is exempted from this prohibition by the Board or

      (ii) such suspended Member is exempted from this prohibition by the Board or a committee thereof.

    (g) Corporate Powers.

    The purchase or other acquisition, and the holding, owning, maintaining, working, developing, selling, leasing, exchanging, hiring, conveying, mortgaging or otherwise disposing of and dealing in, lands and leaseholds, and any interest, estate and rights in personal property, and any personal or mixed property, and any franchises, rights, licenses or privileges necessary, convenient or appropriate for any of the purposes herein expressed; the borrowing of funds for NFA's purposes and the pledging of real, personal or mixed property in connection therewith; the institution and defense of suits in NFA's name, and the settlement or compromising of any claim or controversy by or against it; and, subject to the delineation of purposes recited herein and the limitations set forth in Section 2 of this Article, the carrying out of all and everything necessary, suitable or proper for the accomplishment of any of the purposes, or the attainment of any of the objects, or the furtherance of any of the powers hereinabove set forth, and the performance of every other act or acts incident or appurtenant to, or growing out of, or connected with the aforesaid business or powers, or any part or parts thereof, and the exercise of all or any of its corporate powers or rights in the State of Delaware and in the various other states, territories, and dependencies of the United States, in the District of Columbia and in all or any foreign countries.

Section 2: Contract Markets.

    (a) Non-applicability of NFA Rules.

    No NFA requirement shall purport to govern or otherwise regulate the specific conduct of a Member or Associate if such conduct is governed or regulated by the requirements of a Contract Market and such Member or Associate is subject to the Contract Market's disciplinary jurisdiction for such conduct.

    (b) Prohibition Upon Adoption of Certain Rules.

    NFA shall not adopt, administer or enforce upon any Member or Associate a rule, standard, requirement or procedure which purports to govern or otherwise regulate any of the following:

      (i) The minimum level or margin required for any futures or swaps contract or type of futures or swaps transaction, the method for calculation thereof, or compliance therewith, unless such rule, standard, requirement or procedure conforms and is not inconsistent with applicable Contract Market requirements.

      (ii) Eligibility for membership in, clearing privileges on, or service on the governing board or committees of, a Contract Market.

      (iii) The rights, privileges, duties or responsibilities of membership in any Contract Market or clearing organization.

      (iv) The content, interpretation, administration or enforcement of any rule, standard, requirement or procedure of a Contract Market or clearing organization.

      (v) The conduct of business or other activities on the trading floor of a Contract Market.

      (vi) The terms or conditions of any futures contract.

      (vii) The terms or conditions of any swaps contract; provided that such terms or conditions conform to and are not inconsistent with applicable Contract Market requirements.

Section 3: Communications With Legislative Bodies.

NFA shall not communicate any statement as its official position, view or opinion to a legislative body on any matter pending or contemplated to be pending before such body, except with the prior approval of the Board.



ARTICLE IV: FORM OF ORGANIZATION
[Effective dates of amendments: October 15, 2001.]

NFA shall be a membership corporation and shall have no capital stock and shall have no authority to issue any stock. NFA is not organized and shall not be conducted for profit, and no part of its net revenues or earnings shall inure to the benefit of any Member except for the repayment of bona fide loans or other credit extended by a Member to NFA.



ARTICLE V: [RESERVED]



ARTICLE VI: MEMBERS
[Effective dates of amendments: February 10, 1983; April 14, 1983; February 7, 1986; January 1, 1990; August 16, 1993; and April 1, 2013.]

Section 1: Membership Eligibility.

Persons eligible to become NFA Members shall include:

    (a) any person registered or provisionally registered with the Commission;
    (b) any Contract Market; and
    (c) any person designated by Commission Rule as eligible for NFA membership.

Section 2: Membership Category.

Each Member which qualifies for membership status in one or more of the following categories-

(a) FCMs;
(b) CPOs;
(c) CTAs;
(d) IBs;
(e) LTMs;
(f) RFEDs;
(g) SDs; or
(h) MSPs

-shall be deemed to be a Member for the purposes of Articles VII, VIII, and X only in that single category to which its business activities primarily relate. Each Member shall have one vote on all matters on which the Member's category is entitled to vote.



ARTICLE VII: BOARD OF DIRECTORS
[Effective dates of amendments: February 10, 1983; November 27, 1984; February 7, 1986; January 22, 1988; July 19, 1988; January 1, 1990; August 2, 1990; September 8, 1992; October 16, 1992; August 16, 1993; January 21, 1994; October 24, 1994; July 23, 1996; May 1, 1998; January 22, 2001; October 15, 2001; October 9, 2007; May 18, 2009; November 16, 2009; April 1, 2013; and May 19, 2014.]

Section 1: General.

The duties of the Board of Directors shall include the management of NFA's business, the adoption of NFA's Bylaws, and the fulfillment of NFA's fundamental purposes.

Section 2: Composition of Board.

The Board of Directors shall be comprised as follows:

    (a) Contract Market Representatives.

      (i) In the event that there are four (4) or less Contract Market Members having annual transaction volume during the prior calendar year of more than 1,000,000, then one representative of each such Contract Market Member.

      (ii) In the event that there are more than four (4) Contract Market Members with annual transaction volume during the prior calendar year of more than 1,000,000:

        (a) One representative of each Contract Market Member ranked in the top three (3) Contract Market Members based on annual transaction volume during the prior calendar year.

        (b) One (1) elected representative of Contract Market Members with annual transaction volume during the prior calendar year of more than 1,000,000 that are not included in Section 2(a)(ii)(a) above. Only Contract Market Members not represented in accordance with Section 2(a)(ii)(a) shall be eligible to vote for the representatives elected in accordance with this Section 2(a)(ii)(b).

      (iii) A specific Contract Market's annual transaction volume shall be the number of commodity futures contracts and swaps contracts entered into on the Contract Market during the calendar year. The number of contracts entered into on a Contract Market shall be adjusted where necessary because of differences in sizes of contracts (e.g., one 5,000 oz. contract for a particular commodity would equal five 1,000 oz. contracts for that commodity for purposes of the computation).

      (iv) A Contract Market Member and all Contract Market Members with which it is affiliated shall have no more than one representative on the Board at any one time. For the purposes of this limitation, a Contract Market Member shall be deemed to be affiliated with another Contract Market Member if it directly or indirectly owns 100 percent of or is owned 100 percent by or has 100 percent ownership in common with such other Contract Market Member.

    (b) Futures Commission Merchant, Leverage Transaction Merchant and Introducing Broker Representatives.

      Nine (9) elected representatives of registered Futures Commission Merchant Members, registered Leverage Transaction Merchant Members and registered Introducing Broker Members, divided as follows:

        (i) Seven (7) representatives of FCMs, including (A) at least three (3) representatives of FCMs ranked in the top ten FCMs and (B) at least three (3) representatives of FCMs and LTMs not ranked in the top ten FCMs based on the total of futures customer segregated funds and foreign futures or foreign options secured amounts, as those terms are defined in the applicable Commission regulations, held as of June 30 of the prior calendar year.

        (ii) One representative of IBs required to maintain minimum adjusted net capital.

        (iii) One representative of IBs not required to maintain minimum adjusted net capital.

    (c) Commodity Pool Operator and Commodity Trading Advisor Representatives.

      Four (4) elected representatives of registered Commodity Pool Operators and registered Commodity Trading Advisors that are NFA Members, including at least two (2) representatives of CPOs or CTAs that rank within the top 20 percent of CPOs or CTAs with funds under management allocated to futures and swaps (as defined in Article XVIII).

    (d) Swap Dealer and Major Swap Participant Representatives and Retail Foreign Exchange Dealer Members.

      Seven (7) elected representatives of registered or provisionally registered Swap Dealers, registered or provisionally registered Major Swap Participants and registered Retail Foreign Exchange Dealers, divided as follows:

        (i) At least three (3) representatives of SDs that are Large Financial Institutions, as of June 30 of the prior calendar year.

        (ii) At least three (3) representatives of SDs or RFEDs that are not included in paragraph (d)(i) above, as of June 30 of the prior calendar year.

        (iii) One representative of MSPs: Provided, however, that if there are no persons willing and eligible to be a representative of MSPs, then one (1) representative of SDs and RFEDs.

    (e) Public Representatives.

        (a) Effective as of the 2013 annual meeting of the Board, eleven (11) individuals who are Public Representatives (see Article XVIII); and

        (b) Effective as of the 2016 annual meeting of the Board, individuals who are Public Representatives (see Article XVIII) shall constitute thirty-five percent (35%) of the Board's voting representatives.

    (f) An FCM, LTM, RFED, IB, CTA, CPO, SD or MSP Member and all of its Affiliates (See Article XVIII(b)) shall have no more than one representative on the Board at any one time.

Section 3: Nominations; Election.

The elected Directors shall be chosen as follows:

    (a) Nominating Committee.

    The Nominating Committee (see Article X) shall nominate at least one candidate for each elected FCM and LTM; IB; CPO and CTA; and SD, MSP and RFED Director position to be filled. These nominations shall be made in accordance with the eligibility requirements contained in this Article. The Nominating Committee shall nominate candidates whose election shall result in diverse segments of each category being represented on the Board based upon the size of the Member, the type of business conducted by the Member and the type of customer serviced by the Member.

    (b) Petition Procedure.

    Nominations may be made for elected FCM and LTM; IB; CPO and CTA; and SD, MSP and RFED Director positions by:

      (i) Petition signed by 50 or more NFA Members in the category for which the nomination is made (i.e., FCM and LTM; SD, MSP and RFED; IB; and CPO and CTA); or

      (ii) Petition submitted by any organization or association recognized by NFA as fairly representing the category (See (b)(i) and(ii) above) for which the nomination is made.

    Petitions shall be submitted in the manner specified in the Bylaws. No petition may nominate more than one candidate for the same position.

    (c) Election.

    If there is a contested election in any category (See (b)(i) and (ii) above) of NFA Members, the Members in that category shall thereafter elect by plurality vote from such nominees the Directors that are to represent that category. The election shall be conducted in the manner provided in the Bylaws, which shall provide for an Annual Election.

    (d) Public Representatives.

    The Public Representatives shall be chosen as follows: Before the Annual Election, the Board shall solicit from the Members the nomination of individuals to serve on the Board in the Public Representative category. At the Board's regular annual meeting, the Board shall, by majority vote, select from among such nominees the Public Representatives to serve on the Board.

    (e) Contract Markets

    In the event of an election as described in Article VII, Section 2(a)(ii)(b), the Contract Market representatives shall be elected as follows: Before the Annual Election, the Board shall solicit from Contract Market Members eligible to have representatives pursuant to Article VII, Section 2(a)(ii)(b) the nomination of individuals to serve on the Board as representatives of such Contract Market Members. If there is a contested election of such Contract Market Members, the Contract Market Members eligible to vote pursuant to Article VII, Section 2(a)(ii)(b) shall thereafter elect by plurality vote from such nominees the Directors that will represent them. The election shall be conducted in the manner provided in the Bylaws, which shall provide for an Annual Election.

Section 4: Terms of Directors.

    (a) Contract Market Directors.

    Directors representing Contract Market Members shall serve for one-year terms, from the date of the Board's regular annual meeting as set forth in Bylaw 506 until the date of the Board's regular annual meeting one year hence.

    (b) Other Directors.

    Directors other than Contract Market Member Directors shall serve for two-year terms, from the date of the Board's regular annual meeting following the Annual Election at which they are elected until the date of the Board's regular annual meeting two years hence: Provided, however, the initial SD Directors and MSP Director, if any, elected in accordance with Section 8 by the Board shall serve from the date of the Board meeting at which they are elected until the date of the Board's regular annual meeting in 2014. SD Directors representing Large Financial Institutions and the SD Directors not representing Large Financial Institutions elected at the Annual Election in 2014 shall serve staggered terms. The two SD Directors representing Large Financial Institutions and the two (2) SD Directors not representing Large Financial Institutions who receive the highest number of votes in each category shall serve the two-year terms and the other three (3) SD or MSP Directors shall serve one-year terms. Ties shall be resolved by random draw.

Section 5: Voting; Quorum.

Each Director shall have one vote upon any matter coming before the Board for official action, and, except as otherwise provided in these Articles or NFA's Bylaws, the affirmative vote of a majority of

    (a) the Directors;
    (b) the combined SD, MSP and RFED Directors and Public Representatives; and
    (c) the combined Contract Market, FCM, LTM, IB, CPO and CTA Directors and Public Representatives
present and voting at a meeting of the Board shall be NFA's official act if a quorum is present. A quorum of the Board shall consist of one-half of the Directors, except where NFA Bylaws specify a lesser number in emergency situations.

Section 6: Establishment of Major Plans and Priorities.

The Board shall establish for observance by the Executive Committee (See Article VIII) and NFA staff major plans and priorities, including those regarding the commitment and expenditure of NFA funds.

Section 7: Chairman and Vice Chairman.

There shall be a Chairman and Vice Chairman of the Board. They shall serve for one-year terms and shall be elected by the Board at its regular annual meeting, by majority vote. The Chairman shall be elected from among the Directors in office and the Vice Chairman shall be elected from among Directors elected to serve on the Executive Committee.

Section 8: Vacancies.

A vacancy that occurs on the Board before the expiration of a Director's term or because additional Directors in existing or new Member categories are required shall be filled (for the unexpired term) by an eligible individual elected by majority vote of the remaining Directors who represent the category of Members in which the vacancy occurred, except that if the vacancy involves a representative of a Contract Market Member, that Contract Market Member shall designate the successor. In the event there are no Directors remaining who represent the category of Members in which the vacancy occurred, the vacancy shall be filled by an eligible individual elected by the Board.



ARTICLE VIII: EXECUTIVE COMMITTEE
[Effective dates of amendments: November 27, 1984; February 7, 1986; January 22, 1988; January 1, 1990; August 16, 1993; May 1, 1998; January 22, 2001; October 15, 2001; May 18, 2009; November 16, 2009; April 1, 2013; and May 19, 2014.]

Section 1: General.

There shall be an Executive Committee of the Board, which may exercise all powers of the Board except as set forth in Section 2 below. The authorized actions of the Executive Committee shall be deemed actions of the Board.

Section 2: Board Powers Not Exercisable By Executive Committee.

    (a) General Prohibitions.

    The Executive Committee shall not exercise any power of the Board when the Board is in session, and the Executive Committee shall at no time take any action with respect to any matter that is the subject of a notice of a pending Board meeting without the concurrence of the Board.

    (b) Specific Prohibitions.

    The Executive Committee shall at no time exercise any of the following powers of the Board:

      (i) The adoption, amendment or repeal of any Bylaw unless such power has been delegated by the Board in accordance with Article XI, Section 1; or the ratification of any proposal to adopt, amend or repeal these Articles.

      (ii) The establishment of major plans and priorities, including those regarding the commitment and expenditure of NFA funds, except that the Board may authorize the Executive Committee to make expenditures within specific monetary limits prescribed in the Bylaws or Board Resolutions.

      (iii) The election, appointment or removal of any NFA Director, officer or committee member.

      (iv) The adoption of a plan of merger or consolidation with another entity.

      (v) The sale, lease, exchange or mortgage of all or substantially all of NFA property or assets.

      (vi) The voluntary dissolution of NFA or the revocation of proceedings therefor.

      (vii) The adoption of a plan for the distribution of NFA assets.

      (viii) The amendment or repeal of any Board Resolution that, by its terms, provides that it shall not be amended or repealed by the Executive Committee.

Section 3: Composition.

The Executive Committee shall comprise the following:

    (a) NFA's President, who shall be an ex officio, non-voting member; and

    (b) The Chairman of the Board, who shall be a non-voting member except in the case of tie votes; and

    (c) Thirteen(13) Directors, as follows:

      (i) Two (2) Directors representing Contract Markets:

        (A) One (1) representative of a Contract Market that had transaction volume of more than 20 percent of aggregate contract market transaction volume during the prior calendar year. A specific Contract Market's transaction volume shall be the number of commodity futures contracts and swaps contracts entered into on the Contract Market. The aggregate contract market transaction volume shall be the number of such contracts entered into on all U.S. contract markets. The number of contracts entered into on a Contract Market shall be adjusted where necessary because of differences in sizes of contracts (e.g., one 5,000 oz. contract for a particular commodity would equal five 1,000 oz. contracts for that commodity for purposes of the computation); and

        (B) One (1) representative of a Contract Market other than a Contract Market described in clause (A) above: Provided, however, if no Contract Market described in clause (A) above is represented on the Board, there shall be two Directors on the Committee from Contract Markets represented on the Board;

      (ii) Two (2) Directors representing FCMs, LTMs or IBs;

      (iii) Two (2) Directors representing CPOs and CTAs;

      (iv) Two (2) Directors representing SDs, MSPs or RFEDs; and

      (v) Five (5) Directors who are Public Representatives (see Article XVIII(r)).

Section 4: Election of Members; Vacancies.

The elected members of the Executive Committee shall be chosen by the Board at the regular annual meeting as follows: The Directors representing Contract Markets that had transaction volume of more than 20 percent of aggregate Contract Market transaction volume during the prior calendar year shall elect the Committee member in category (c)(i)(A) above; the Directors representing all other Contract Markets shall elect the Committee member in category (c)(i)(B) above; the Directors representing FCMs, LTMS and IBs shall elect the Committee members in category (c)(ii) above; the Directors representing CPOs and CTAs shall elect the Committee members in category (c)(iii) above; the Directors representing SDs, MSPs and RFEDs shall elect the Committee members in category (c)(iv) above; and the Public Representative Directors shall be elected by the Board. A vacancy that occurs on the Executive Committee before the expiration of a Committee Member's term or because additional Committee Members in existing or new Member categories are required shall be filled in like manner. Tie votes may be resolved by the Board by random draw.

Section 5: Voting; Quorum.

Each member of the Executive Committee shall have one vote on Executive Committee matters. A majority of the Executive Committee members shall constitute a quorum.



ARTICLE IX: PRESIDENT AND SUBORDINATE OFFICERS

There shall be a President, a Secretary, and a Treasurer, and such other subordinate officers as the Board deems appropriate. The foregoing officers shall be appointed, and may be removed, by the Board, as prescribed in the Bylaws. The President shall be the Chief Executive Officer of NFA and shall have the duties prescribed in these Articles, the Bylaws and Board Resolutions.



ARTICLE X: NOMINATING COMMITTEE
[Effective dates of amendments: April 14, 1983; February 7, 1986; July 19, 1988; January 1, 1990; August 2, 1990; February 10, 2000; January 22, 2001; October 15, 2001; and April 1, 2013.]

Section 1: General.

There shall be a Nominating Committee, composed of four Subcommittees, one for each of the following categories of Members: (i) FCMs and LTMs, (ii) IBs, (iii) CPOs and CTAs and (iv) SDs, MSPs and RFEDs. Each Subcommittee shall nominate at least one candidate for each position to be filled on the Board in the Subcommittee's category, in accordance with the eligibility requirements of Article VII.

Section 2: Composition; Term of Members.

    (a) Each Subcommittee of the Nominating Committee shall be composed of three representatives of the Subcommittee's category, except that:

      (i) The FCM and LTM Subcommittee shall be composed of three representatives, including at least one representative of FCMs or LTMs described in Article VII, Section 2(b)(i)(A) and at least one representative of FCMs or LTMs described in Article VII, Section 2(b)(i)(B);

      (ii) The IB Subcommittee shall be composed of three representatives, including at least one representative of IBs required to maintain minimum adjusted net capital and at least one representative of IBs not required to maintain minimum adjusted net capital;

      (iii) The CPO and CTA Subcommittee shall include at least one representative that primarily acts as a CPO and at least one representative that primarily acts as a CTA; and

      (iv) The SD, MSP and RFED Subcommittee shall be composed of three representatives, including at least one representative of SDs described in Article VII, Section 2(d)(i); at least one representative of SDs described in Article VII, Section 2(d)(ii).

    (b) Members of the Nominating Committee shall serve staggered terms of three years from the date of the Board's regular annual meeting following the Annual Election at which they are elected until the date of the Board's regular annual meeting three years hence: Provided, however, that the initial members of the SD and MSP Subcommittee shall serve terms from the date of the Board meeting at which they are elected as follows: one member until the date of the Board's regular annual meeting in 2014; one member until the date of the Board's regular annual meeting in 2015; and one member until the date of the Board's regular annual meeting in 2016; and the Board shall determine which members of the SD and MSP Subcommittee shall serve such terms.

Section 3: Selection of Committee Members.

Each Subcommittee of the Nominating Committee shall nominate, for each position to be filled on the Nominating Committee, one eligible individual for election by the Members to that Subcommittee for the following term. Additional nominations may be made for each such position by petition in the manner set forth in Article VII, Section 3. The procedures for such election shall be the same as those prescribed in Article VII, Section 3. No person shall be nominated or elected to the Nominating Committee who has served on the Nominating Committee during the preceding term, and no person shall be nominated or elected to the Nominating Committee who, at the time of such nomination or election, is a Director. Any vacancy that occurs on the Nominating Committee shall be filled by the Board from among persons eligible under this Article to serve thereon.



ARTICLE XI: BYLAWS
[Effective dates of amendments: February 7, 1986; January 1, 1990; August 16, 1993; October 15, 2001; April 1, 2013; and May 19, 2014.]

Section 1: Adoption, Amendment and Repeal.

Bylaws of NFA may be adopted, amended or repealed in accordance with Article VII, Section 5, except that the Board shall not take the following actions unless a two-thirds majority of:

    (a) the Directors;
    (b) the combined SD, MSP and RFED Directors and Public Representatives; and
    (c) the combined Contract Market, FCM, LTM, IB, CPO and CTA Directors and Public Representatives

present and voting approves:

    (i) Delegating or otherwise granting authority to any NFA Committee, officer, employee or agent, or any other person, to adopt, amend or repeal any Bylaw;

    (ii) Adopting, amending or repealing any Bylaw regarding dues or assessments; and

    (iii) Adopting, amending or repealing any Bylaw regarding dues, assessments or similar charges imposed on Contract Market Members.

    Section 2: Content of Bylaws.

    Except insofar as such matters are expressly contained in these Articles, the following shall be as provided from time to time in NFA's Bylaws: The conditions of, method of admission to, and qualifications for membership and Associate registration; the limitations, rights, powers and duties of Members and Associates; dues and assessments; the method of expulsion from and the termination of membership and Associate registration; the procedures for the settlement of claims and grievances; and all other matters pertaining to membership in, registration with, and the conduct, management and control of the business, property and affairs of NFA.



    ARTICLE XII: EFFECTIVE DATE OF REQUIREMENTS

    The NFA Board may establish such effective date for any of its requirements as it deems appropriate in light of NFA resources and the prudent initiation of particular NFA operations and programs.



    ARTICLE XIII: DURATION

    NFA shall have perpetual existence.



    ARTICLE XIV: MEMBERS' LIABILITY

    The private property of the Members shall not be subject to the payment of NFA's debts or liabilities to any extent whatsoever.



    ARTICLE XV: FINANCING
    [Effective date of amendments: April 1, 2013.]

    Section 1: Costs.

    The initial costs of organization of NFA shall be borne by the Organizers, except that the Board in its discretion may reimburse the Organizers for all or any part of such verified organizational expenses.

    Section 2: Initial Working Capital.

    The initial working capital of NFA shall consist of borrowings from Contract Markets or other sources, to be evidenced by loan agreements, promissory notes or other evidences of indebtedness, which shall be repaid as promptly as practicable from dues, assessments or other revenue received by NFA.

    Section 3: Revenue.

    The operating income of NFA shall consist of dues, assessments, fees and other charges upon Members and others as prescribed from time to time in NFA's Bylaws, subject to Section 1 of Article XI. NFA schedules of such charges may prescribe different rates or amounts for different categories of Members, or sub-categories therein, endeavoring to reflect differences in the financial burden borne or expected to be borne by NFA in carrying out its duties and programs for each such category or sub-category.

    Section 4: Loans and Other Receipts.

    Nothing herein shall prohibit or inhibit the Board, in its discretion, from securing loans, accepting gifts, grants or contributions, or otherwise obtaining financing to meet NFA's initial or on-going needs in lieu of or in addition to the other methods of financing recited in this Article.



    ARTICLE XVI: MISCELLANEOUS
    [Effective dates of amendments: April 14, 1983; July 1, 1987; and April 1, 2013.]

    Section 1: Registered Office.

    The registered office of NFA in the State of Delaware is located at 100 West Tenth Street, City of Wilmington, County of New Castle, Delaware. The name and address of its resident agent is the Corporation Trust Company, 100 West Tenth Street, Wilmington, Delaware.

    Section 2: Incorporators.

    The names and addresses of the incorporators of NFA are as follows:

    Paul F. McGuire
    184 Maple Avenue
    Highland Park, Illinois 60035

    Leo Melamed
    350 Sunrise Circle
    Glencoe, Illinois 60022

    Section 3: Indemnification.

    NFA shall provide in its Bylaws for indemnification of its past and present directors, officers, committee members, employees and agents, and any person who is serving or has served at NFA's request as a director, officer, committee member, employee or agent of another organization, to the full extent permitted by law.

    Section 4: Dissolution.

    Upon dissolution, the net assets of NFA, after payment of liabilities, shall be distributed to the then Members in proportion to the dues and assessments previously paid.

    Section 5: Directors' Liability.

    To the fullest extent permitted by the Delaware General Corporation Law as the same exists or may hereafter be amended, a director of this corporation shall not be liable to the corporation or its members for monetary damages for breach of fiduciary duty as a director.



    ARTICLE XVII: ADOPTION, AMENDMENT AND REPEAL OF ARTICLES
    [Effective dates of amendments: April 14, 1983; February 7, 1986; September 8, 1987; January 1, 1990; October 16, 1992; October 15, 2001; April 1, 2013; and May 19, 2014.]

    No provision of these Articles may be adopted, amended or repealed except in the manner prescribed in this Article. Each such proposed change to the Articles shall be reviewed by the Board, and shall be submitted to the Members of NFA only upon ratification of the proposal by two-thirds of:

      (a) the Directors;
      (b) the combined SD, MSP and RFED Directors and Public Representatives; and
      (c) the combined Contract Market, FCM, LTM, IB, CPO and CTA Directors and Public Representatives

    present and voting. If any such proposed change relates to Article III, Section 2, such proposed change shall not be considered by the Board for ratification unless at least 60 days written notice of the proposed change has been given to each Contract Market Member. Upon such ratification, the proposal shall be submitted to a ballot vote of the Members and shall be adopted upon the affirmative vote of a majority of those Members in each of the categories set forth in Sections 2(a)-2(d) of Article VII who submit a proper ballot in a timely manner.



    ARTICLE XVIII: DEFINITIONS.
    [Effective dates of amendments: April 14, 1983; February 7, 1986; January 1, 1990; May 1, 1998; January 22, 2001; October 15, 2001; November 16, 2009; and April 1, 2013.]

    As used in these Articles-

      (a) "Act"-means the Commodity Exchange Act, as amended from time to time.

      (b) "Affiliate"-means, unless otherwise provided, any person that directly or indirectly owns more than 50% of or is owned more than 50% by or has more than 50% ownership in common with another person.

      (c) "Associate"-means a person who is associated with a Member within the meaning of the term "associated person" as used in the Act or Commission Rules and who is required to be registered as an "associated person" with the Commission; and any other person designated by the Board to be an Associate.

      (d) "Board" or "Board of Directors"-means the Board of Directors of NFA.

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

      (f) "Commodity Pool Operator" or "CPO"-means a commodity pool operator as that term is used in the Act, and that is required to be registered as such under the Act and Commission Rules, except any CPO that the Board has designated to be an Associate.

      (g) "Commodity Trading Advisor" or "CTA"-means a commodity trading advisor as that term is used in the Act, and that is required to be registered as such under the Act and Commission Rules, except any CTA that the Board has designated to be an Associate.

      (h) "Contract Market"-means an exchange registered by the Commission as a designated contract market.

      (i) "Clearing Organization"-means an entity (whether a unit or division of the Contract Market, or a separate organization) that clears commodity futures transactions or swaps transactions executed on a Contract Market.

      (j) "Fees"-means charges for processing applications, administering qualifications examinations, conducting arbitrations, and other clerical and administrative fees. The term "fees" does not include dues, assessments or similar charges.

      (k) "Futures"-includes options contracts traded on a Contract Market, and such other commodity-related instruments as the Board may from time to time declare by Bylaw to be properly a subject of NFA regulation and oversight.

      (l) "Futures Commission Merchant" or "FCM"-means a futures commission merchant as that term is used in the Act, and that is required to be registered as such under the Act and Commission Rules.

      (m) "Introducing Broker" or "IB"-means an introducing broker as that term is used in the Act, and that is required to be registered as such under the Act and Commission Rules.

      (n) "Large Financial Institution"-means a Swap Dealer included in a well defined, publicly available and independent list of financial institutions that the Board of Directors identifies by resolution from time to time.

      (o) "Leverage Transaction Merchant" or "LTM"-means a leverage transaction merchant as that term is used in Commission Rules, and that is required to be registered as such under the Act and Commission Rules.

      (p) "Major Swap Participant" or "MSP"-means a major swap participant as that term is used in the Act, and that is required to be registered as such under the Act and Commission Rules.

      (q) "Member"-means a member of NFA.

      (r) "Person"-includes individuals, corporations, partnerships, trusts, associations and other entities.

      (s) "Public Representative"-refers to those members of the Board of Directors who are public directors as that term is defined in Section (b)(2) of Core Principle 16 in Appendix B to Part 38 of the Commission's Rules and is read in the context as applied to NFA.

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

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

      (v) "Swap Dealer" or "SD"-means a swap dealer as that term is used in the Act, and that is required to be registered as such under the Act and Commission Rules.

      (w) "Swaps"-means swaps as used and defined in the Act and in the Commission Rules, and such other swap-related agreement, contract or transaction as the Board may from time to time declare by Bylaw to be properly a subject of NFA regulation and oversight.

     
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