- Who must be a Member of NFA?
- Are there any firms or individuals who must be registered but do not need to be a Member of NFA?
- How do I apply for NFA membership?
- Is approval of the application for NFA membership automatic?
- How much are NFA's Annual Dues?
Who must be a Member of NFA?
In general, all FCMs, IBs, CPOs and CTAs that are required to be registered with the CFTC and that conduct a futures-related business with the public must be Members of NFA. NFA Members may not conduct customer business with any entity that is not an NFA Member unless that non-Member entity is specifically exempt from CFTC registration requirements. Individuals who act as APs of NFA Members must be NFA Associates.
Are there any firms or individuals who must be registered but do not need to be a Member of NFA?
Yes. Notice Registered FCMs and IBs; ATMs and their affiliated individuals; CTAs that do not manage or exercise discretion over customer accounts; floor brokers and floor traders; and principals do not need to be NFA Members.
How do I apply for NFA membership?
Firms must file an electronic application for NFA membership in ORS. This can be done at the same time that the firm applies for registration or separately. AP applicants automatically apply to be Associates as part of the AP registration application process.
Is approval of the application for NFA membership automatic?
No, applicants for NFA membership or Associate status must meet fitness standards similar to those that apply to applicants for registration. Usually though, if the applicant is granted registration, the membership or associate status is also approved.
Persons whose CFTC registration has been revoked or suspended (if the suspension is still in effect) may be deemed disqualified for NFA membership. So may persons who have been refused CFTC registration, persons who have been enjoined by court order from doing business as futures professionals and persons who have been convicted of a felony or certain misdemeanors. These and other grounds for denial are listed in the NFA Manual (See Bylaw 301(c), "Restrictions on Becoming or Remaining a Member or Associated with a Member").
Applicants which are denied membership have the right to appeal the denial-and, in some cases, if they request, to have a hearing before the Membership Committee-in order to demonstrate that they meet requirements for membership. These procedures are likewise contained in the NFA Manual (See Bylaw 301(g)).
How much are NFA's Annual Dues?
MULTIPLE REGISTRATION
Applicants that are registered with the CFTC (or that have applied for CFTC registration) in more than one category are required to pay NFA annual dues only in the category for which the annual dues is highest regardless of principal business. For example, if a firm is registered with the CFTC as both an FCM and a CPO, it would only be required to pay NFA dues as an FCM.
MEMBERSHIP ANNUAL DUES SCHEDULE
|
|
Futures Commission Merchant
(exchange member): |
$1,500 |
Futures Commission Merchant
(non-exchange member): |
$5,625 |
| FCM Forex Dealer Member - Exchange Member with annual forex revenue of $500,000 or less: * |
$45,875 |
| FCM Forex Dealer Member - Exchange Member with annual forex revenue of more than $500,000 but not more than $2 million: * |
$70,875 |
| FCM Forex Dealer Member - Exchange Member with annual forex revenue of more than $2 million, but not more than $5 million: * |
$95,875 |
| FCM Forex Dealer Member - Exchange Member with annual forex revenue of more than $5 million: * |
$120,875 |
| FCM Forex Dealer Member - Non-Exchange Member with annual forex revenue of $500,000 or less: * |
$50,000 |
| FCM Forex Dealer Member - Non-Exchange Member with annual forex revenue of more than $500,000 but not more than $2 million: * |
$75,000 |
| FCM Forex Dealer Member - Non-Exchange Member with annual forex revenue of more than $2 million, but not more than $5 million: * |
$100,000 |
| FCM Forex Dealer Member - Non-Exchange Member with annual forex revenue of more than $5 million: * |
$125,000 |
| Commodity Pool Operator: |
$750 |
| Commodity Trading Advisor: |
$750 |
| Introducing Broker: |
$750 |
* FCM Forex Dealer Member dues will be assessed on membership renewal date; regular FCM dues apply to initial application.
FCM FOREX DEALER MEMBER ANNUAL FEE:
Bylaw 1301 also requires FDMs to pay an annual fee based on the highest number of unregulated solicitors and account managers that they were responsible for at any given time for the 12 month period preceding the Members' annual dues notice. The following table lists the fee levels.
| Number of Unregulated Entities |
Annual Fee |
| 0 | $ 0 |
| 1-4 | $ 5,000 |
| 5-19 | $10,000 |
| 20-99 | $25,000 |
| 100 or more | $50,000 |
If you have any other questions, contact NFA's Information Center at (800) 621-3570 or (312) 781-1410 or e-mail NFA.
|
