Notices to Members

June 22, 2020

Effective date for NFA rule amendments related to NFA's penalties and other disciplinary procedures

NFA Compliance Rule 3-14 sets forth the types of penalties that an NFA disciplinary panel may impose at the conclusion of an NFA disciplinary proceeding. NFA recently amended this rule to increase the maximum monetary penalty to $500,000 per rule violation. This increase is intended to further deter violations of NFA requirements and provide NFA's disciplinary panels with the flexibility needed in assessing penalties. NFA also made several other minor amendments to its disciplinary procedures set forth in Part 3 of its Compliance Rules. These amendments will become effective on August 31, 2020.

More information on these amendments is available in the May 19, 2020 submission letter to the CFTC. If you have any questions regarding these amendments, please contact Julia Wood, Senior Attorney (jlwood@nfa.futures.org).