Notices to Members

June 1, 1999

Assessment Fees

On May 20, 1999, the Board of Directors of NFA approved a reduction in NFA's assessment fees. The assessment fee will be reduced from $.20 to $.18 per round-turn futures contract and from $.10 to $.09 per options transaction. The new fees will become effective on July 1, 1999, unless the CFTC notifies NFA that it intends to review the changes to the assessment fees. Members will receive further notification only if the changes do not become effective on July 1, 1999. Assessment fee levels for mini-contracts will remain at $.04 per round-turn futures contract and $.02 per option transaction.

The reduction in assessment fees was recommended to the Board by NFA's Finance Committee because NFA's fee income has been running above budget due to unanticipated increases in the volume of public contracts and effective cost containment by staff. The Finance Committee's goal was to stabilize the level of NFA's working capital while limiting the possibility of future fluctuations in the level of assessment fees. As part of next year's budgeting process, the Finance Committee will analyze the most recent revenue and expenditure figures and will determine whether any additional actions are appropriate at that time.

If you have any questions, you may wish to refer to the Interpretive Notice on page 9041 in your NFA Manual which answers frequently asked questions about the assessment fees. Or you may contact NFA's Information Center at (312) 781-1410.