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September 17, 2002
The NFA Assessment Fee for Total Return Asset Contracts ("TRAKRSsm")
TRAKRSsm are cash-settled, electronically traded futures contracts in broad-based indices of stocks, bonds, currencies and other financial instruments that began trading at the Chicago Mercantile Exchange ("CME") in late July 2002. The TRAKRSsm contracts began trading with a notional value amount of $25.00. Customers may carry TRAKRSsm positions in both futures and securities accounts.
At its August 15, 2002 meeting, NFA's Board of Directors decided that the current assessment fee level – even at the mini-contract rate – would be unduly burdensome if imposed upon this product due to the contract's micro value. Therefore, the Board interpreted NFA Bylaw 1301 to impose an assessment fee amount of .02¢ ($.0002) per contract on a round turn basis. FCMs offering this product should apply this assessment fee amount retroactively and remit the appropriate amount to NFA. For additional information and sample calculations for the TRAKRSsm assessment fee, please see the NFA Interpretive Notice entitled "NFA Bylaw 1301: NFA Assessment Fee Questions and Answers for FCMs" available online at www.nfa.futures.org/compliance/manual/M11Interp_16.html.