News & Notices | National Futures Association

Proposed Rule

2017 | 2016 | 2015 | 2014 | 2013 | Show more years

PROPOSED AMENDMENTS TO NFA Registration Rules 201, 301 and 302 and Proposed Adoption of NFA Registration Rule 303
(Additions are underscored and deletions are bracketed)

Registrations Rules

* * *

Part 200. Registration Requirements and Procedures

Rule 201. Registration Requirements and Procedures

* * *

NFA shall perform registration functions with respect to persons required to register under the Act as floor brokers or floor traders in accordance with all of the Regulations governing the registration of floor brokers and floor traders contained in Part 3 of the Commission's Regulations, except that Rule 203 of these Rules shall govern floor broker and floor trader registration fees, Rule 303 shall govern the issuance and termination of temporary licenses to floor brokers and floor traders, Part 500 of these Rules shall govern adverse registration proceedings involving floor brokers or floor traders and Part 700 of these Rules shall govern access to and certification of floor broker and floor trader records maintained by NFA.

* * *

Part 300. Temporary Licenses

Rule 301. Temporary Licensing of Associated Persons.

(a) Qualifications. Notwithstanding any other provisions of these Rules, and pursuant to the terms and conditions of this Rule, NFA may grant a temporary license to any applicant for registration as an AP upon the contemporaneous filing with NFA of:

    (1) a properly completed Form 8R [, the Disciplinary History portion of which contains no "yes" answers indicating that the applicant may be disqualified from registration under Sections 8a(2) through 8a(4) of the Act];

* * *

(b) Temporary Licensing Upon Transfer of Associated Person Registration.

    (1) Except as otherwise provided in paragraph (b)(4) of this Rule and Rule 207, any person whose registration as an AP has terminated within the preceding 60 days and who becomes associated with a new sponsor may be temporarily licensed as an AP of such sponsor (except in those circumstances set forth in paragraph (b)(3) of this Rule) upon the mailing to NFA of a Form 8R, completed in accordance with the instructions thereto, containing written certification from the new sponsor stating:
    * * *
      [(D) that the Disciplinary History portion of such person's registration application contains no "yes" answers, or none except those arising from a matter which has already been disclosed in connection with a previous application for registration in any capacity if such registration was granted, or which was disclosed more than 30 days previously in an amendment to such application;]

      [(E)] (D)

      * * *

      [(F)] (E)

      * * *

Rule 302. Temporary Licensing For Guaranteed Introducing Brokers.

(a) Qualifications. Notwithstanding any other provisions of these Rules, and pursuant to the terms and conditions of this Rule, NFA may grant a temporary license to any applicant for registration as an IB upon the contemporaneous filing with NFA of:

* * *

(2) A properly completed Form 7R [, the Disciplinary History portion of which contains no "yes" answers indicating that the applicant may be disqualified from registration under Sections 8a(2) through 8a(4) of the Act];

* * *

(3) A properly completed Form 8R for all persons who are principals and branch office managers [which contains no "yes" answers indicating that the applicant may be disqualified for registration under Sections 8a(2) through 8a(4) of the Act, or none except those arising from a matter which has already been disclosed in connection with a previous application for registration in any capacity if such registration was granted, or which was disclosed more than 30 days previously in an amendment to such application], all of whom would be eligible for a temporary license if they had applied as APs;

* * *

RULE 303. Temporary Licensing For Floor Brokers and Floor Traders.

(a) Qualifications. Notwithstanding any other provision of these Rules, and pursuant to the terms and conditions of this Rule, NFA may grant a temporary license to any applicant for registration as a floor broker (which, if the applicant has not been registered as a floor broker within the preceding 60 days shall permit such applicant to act in the capacity as a floor trader only) or floor trader upon the contemporaneous filing with NFA of:

    (1) a properly completed Form 8R;

    (2) the fingerprints of the applicant on a fingerprint card provided by NFA for that purpose;

    (3) evidence that the applicant has been granted trading privileges by a contract market that has filed with NFA a certification signed by its chief operating officer with respect to the review of an applicant's employment, credit and other history in connection with the granting of trading privileges; and

    (4) the registration fee required by Rule 203(a)(6) or (7).

(b) Temporary Licensing for Floor Brokers and Floor Traders Operating at a New Contract Market.

    (1) Floor Brokers. Except as otherwise provided by this Rule, any person whose registration as a floor broker has terminated within the preceding 60 days, who is granted trading privileges by any contract market that has made the certification required under paragraph (a)(3) of this Rule and who is applying for registration as a floor broker or floor trader may be temporarily licensed as such (except in those circumstances set forth in paragraph (b)(3) of this Rule) upon the mailing to NFA of a Form 8R, completed in accordance with the instructions thereto, containing the applicant's written certifications stating:

      (A) that such person's registration as a floor broker is not suspended or revoked; and

      (B) that there is no pending adjudicatory proceeding against such person under Sections 6(c), 6(d), 6c, 6d, 8a or 9 of the Act, 3.55 or 3.60 of the Commission's Regulations or Part 500 of these Rules and, within the preceding 12 months, the Commission or NFA has not permitted the withdrawal of an application for registration in any capacity after initiating the procedures provided in 3.51 of the Commission's Regulations or Rule 503, respectively.

    (2) Floor Traders. Except as otherwise provided by this Rule, any person whose registration as a floor trader has terminated within the preceding 60 days, who is granted trading privileges by any contract market that has made the certification required under paragraph (a)(3) of this Rule and who is applying for registration as a floor broker or floor trader may be temporarily licensed as a floor trader (except in those circumstances set forth in paragraph (b)(3) of this Rule) upon the mailing to NFA of a Form 8R, completed in accordance with the instructions thereto, containing the applicant's written certifications stating:

      (A) that such person's registration as a floor trader is not suspended or revoked; and

      (B) that there is no pending adjudicatory proceeding against such person under Sections 6(c), 6(d), 6c, 6d, 8a or 9 of the Act, 3.55 or 3.60 of the Commission's Regulations or Part 500 of these Rules and, within the preceding 12 months, the Commission or NFA has not permitted the withdrawal of an application for registration in any capacity after initiating the procedures provided in 3.51 of the Commission's Regulations or Rule 503, respectively.

(3) An applicant will not become temporarily licensed upon mailing of a properly completed Form 8R pursuant to this paragraph (b) unless such Form is accompanied by: (I) the fingerprints of the applicant on a fingerprint card provided by NFA for that purpose; (ii) the registration fee required by Rule 203(a)(6) for floor broker applicants or Rule 203(a)(7) for floor trader applicants; and if applicable, (iii) a Supplemental Sponsor Certification Statement signed, in the case of a floor broker applicant, by the new supervising employer or floor broker or, in the case of a floor trader applicant, by the new supervising officer of the applicant's clearing member who is either a registrant or principal of the clearing member or the chief operating officer of each contract market that has granted the applicant trading privileges. Each such supervisor must meet the requirements set forth in Commission Regulations 3.60(b)(2)(i)(A) and (C) and the Supplemental Sponsor Certification Statement must contain conditions identical to those agreed to by the previous sponsor.

(c) Restrictions Upon Activities.

An applicant for registration as a floor broker or floor trader who has received written notification that a temporary license has been granted may act in the capacity of a floor trader, unless such applicant who has applied for registration as a floor broker has been registered as a floor broker within the preceding 60 days, in which case the issuance of a temporary license shall permit such applicant to act in the capacity of a floor broker. Any temporarily licensed applicant acting in the capacity of a floor trader or floor broker shall be subject to all Commission rules, regulations and orders.

(d) Termination of a Temporary License.

    (1) A temporary license shall terminate:

      (A) five days after service of a notice by NFA pursuant to Rule 505 that the applicant may be disqualified from registration under Sections 8a(2) through 8a(4) of the Act;

      (B) immediately upon notification to the temporarily licensed applicant that the sponsor who filed the Supplemental Sponsor Certification Statement described in paragraph (b)(3) of this Rule has terminated the sponsorship relationship;

      (C) upon failure of an applicant's sponsor or an applicant to respond to NFA's request for clarification of application information, to pay the required fee pursuant to Rule 203(a)(6) or (7) or to resubmit fingerprints in accordance with such request;

      (D) immediately upon revocation or withdrawal of the applicant's sponsor;

      (E) immediately upon loss of trading privileges on all contract markets that filed the certification described in Commission Regulation 3.40(d);

      (F) upon notice to the applicant or the contract market that has granted the applicant trading privileges that (i) the applicant has failed to comply with an award in an arbitration proceeding conducted pursuant to Part 180 of the Commission's Regulations within the time permitted for such compliance as specified in Section 10(g) of NFA's Code of Arbitration or the comparable time period specified in the rules of a contract market or other appropriate arbitration forum; (ii) the applicant failed to pay the full amount of a reparation order within the time permitted under Section 14(f) of the Act; (iii) the applicant failed to comply with an order to pay a civil monetary penalty within the time permitted under Sections 6(e), 6b or 6c(d) of the Act; (iv) the applicant failed to disclose relevant disciplinary history in response to items 14 through 18 on the Form 8R; or (v) an event has occurred leading to an affirmative response to item(s) 14 through 18 on the applicant's Form 8R.

    (2) Upon termination of a temporary license, the applicant may not engage in any activity that requires registration with the Commission as a floor broker or floor trader.

(e) Relationship to Registration.

    (1) A temporary license shall not be deemed to be a registration or to confer any right to such registration.

    (2) Unless a temporary license has been terminated, a temporary license shall become a registration with the Commission upon the earlier of:

      (A) a determination by NFA that the applicant is qualified for registration as a floor broker or floor trader; or

      (B) the expiration of six months from the date of its issuance unless NFA has issued a notice pursuant to Rule 505 that the applicant may be disqualified from registration under Sections 8a(2) through 8a(4) of the Act.

    (f) Retention of Records. In accordance with Commission Regulation 1.31, the applicant and the applicant's sponsor, if applicable, must retain such records as are necessary to support the certifications required by this Rule.

Subscribe to NFA Email Communications