Investor Newsletter

July 21, 2017

NFA Launches Newly Redesigned Website

NFA launched its redesigned website in late June 2017. The redesign project was driven by Member feedback, analysis of usage patterns and benchmarking, with the primary goals of providing better navigation and a much improved user experience.

As part of NFA's website redesign, NFA updated its Investor section, which includes information regarding:

  • Investor Newsletters. These newsletters are issued on a quarterly basis in an effort to keep investors up-to-date on recent initiatives and helpful resources.
  • FCM Financial Information. FCM Members file financial reports with NFA that provide greater transparency into an FCM's financial information.
  • Investor Best Practices – Getting Started. Before opening a futures trading account, investors should thoroughly understand the futures markets, as well as the opportunities and risks involved in futures trading.
  • File a Complaint form. NFA strongly encourages investors to complete this form if they believe an NFA Member has treated them improperly or has engaged in improper business practices.
  • BASIC. This tool allows investors to view important background information about firms and professionals operating within the derivatives industry.
  • Additional investor education and resources. These resources explain the purpose of the derivatives industry and the role NFA plays in safeguarding market integrity. 

World Investor Week 2017

The International Organization of Securities Commissions (IOSCO) recently announced that it will hold a week-long global initiative known as World Investor Week (WIW) from Monday, October 2, 2017 through Sunday, October 8, 2017, to promote investor education and protection worldwide.

 As part of this initiative, IOSCO members around the world will provide a variety of educational resources and workshops. NFA looks forward to participating in WIW by presenting an educational webinar and will share further information in the coming months. Please visit the WIW map to see events taking place in your jurisdiction.


CFTC Launches New Video Series Featuring Fraud Victims

The Commodity Futures Trading Commission (CFTC) recently launched a new video series entitled "True Fraud Stories". The series features individuals who have been victims of financial fraud, using their stories as a powerful tool for other investors. 

Through this video series, the CFTC demonstrates how cunning fraudsters lured smart investors into fraudulent schemes resulting in significant losses, and encourages investors to conduct due diligence.

Investors can check the registration status of their broker using resources found on the CFTC's SmartCheck.gov, which contains information on FINRA's BrokerCheck and NFA's BASIC system, among others. BASIC allows investors to view important background information about firms and professionals operating within the derivatives industry.


SEC Investor Bulletin: Be Cautious of SAFEs in Crowdfunding

This content was written and provided by the US Securities and Exchange Commission's Office of Investor Education and Advocacy.

The SEC’s Office of Investor Education and Advocacy recently issued an Investor Bulletin to educate investors about a type of security, often described as a Simple Agreement for Future Equity (SAFE) that may be presented in crowdfunding offerings.

A SAFE is an agreement between the investor and the company in which the company generally promises to give the investor a future equity stake in the company if certain trigger events occur. Despite its name, a SAFE may not be “simple” or “safe.”

A SAFE is very different from traditional common stock and it is important to understand the differences in order to make an informed investment decision that is right for you. View the Investor Bulletin here.


Recent Enforcement Actions

In the second quarter of 2017, NFA issued Decisions and Complaints against the following NFA Member firms and individuals. Click on the name for more detailed information.

Decisions in Disciplinary Cases
Duet Asset Management Ltd.
Hansa Capital Management LLC
Option Financial LLC
Pratik Patel
Lothar Ruehling
Noel Sinclair

Complaints
Duet Asset Management Ltd