Proposed Rule

2022 | 2021 | 2020 | 2019 | 2018 | Show more years

Proposed Amendment to NFA Financial Requirements
(Additions are underscored and deletions are stricken)



Each NFA Member that is registered or required to be registered with the Commodity Futures Trading Commission (hereinafter "CFTC") as a Futures Commission Merchant (hereinafter "Member FCM") must maintain "Adjusted Net Capital" (as defined in CFTC Regulation 1.17) equal to or in excess of the greatest of:

    (i) $250,000;

    (ii) Four percent of the funds required to be segregated pursuant to the Commodity Exchange Act and CFTC Regulations and the foreign futures or foreign options secured amount, less the market value of commodity options purchased by customers on or subject to the rules of a contract market or a foreign board of trade for which full premiums have been paid: Provided, however, the deduction for each customer shall be limited to the amount of customer funds in such customer's account and foreign futures and foreign options secured amounts;

    (iii) $6,000 for each remote location operated (i.e. proprietary branch offices, main office of each guaranteed IB and branch offices of each guaranteed IB);

    (iv) $3,000 for each AP sponsored (including APs sponsored by guaranteed IBs); or

    (v) (for securities brokers and dealers) the amount of net capital specified in Rule 15c3-1(a) of the Regulations of the Securities and Exchange Commission (17 CFR 240.15c3-1(a)). ; or

    (vi) Eight percent of domestic and foreign domiciled customer and four percent of non-customer (excluding proprietary) risk maintenance margin/performance bond requirements for all domestic and foreign futures and options on futures contracts.

A Member FCM, for which NFA is the designated self-regulatory organization (hereinafter DSRO), that is required to file any document with or give any notice to its DSRO under CFTC Regulations 1.10 [Financial reports of futures commission merchants and introducing brokers], 1.12 [Maintenance of minimum financial requirements by futures commission merchants and introducing brokers], 1.16 [Qualifications and reports of accountants], or 1.17 [Minimum financial requirements by futures commission merchants and introducing brokers] shall also file one copy of such document with or give such notice to NFA at its Chicago office no later than the date such document or notice is due to be filed with or given to the CFTC.

Subscribe to NFA Email Communications