Member Arbitration Rules

SECTION 2. ARBITRABLE DISPUTES.

[Adopted effective February 18, 1992. Effective dates of amendments: May 1, 1994; December 12, 1995; September 1, 1999; March 1, 2002 and October 6, 2020.]

(a) Claims between Members.
Except as provided in Sections 4 and 5 of these Rules with respect to timeliness requirements, disputes between and among Members shall be arbitrated under these Rules unless:

(1) the parties, by valid and binding agreement, have committed themselves to the resolution of such dispute in a forum other than NFA;

(2) the parties to such dispute are all required by the rules of another self-regulatory organization to submit the controversy to the settlement procedures of that self-regulatory organization;

(3) all parties to the dispute are members of a contract market which has jurisdiction over the dispute;

(4) one of the parties to the dispute is a party to a dispute pending in another forum and files a cross-claim or third-party claim in that forum. The cross-claim or third-party claim must arise out of an act or transaction that is the subject of the claim pending in that forum; or

(5) at the election of the Member with the claim, the Member respondent is no longer an NFA Member.

(b) Claims between Members and Associates.
Except as provided in Sections 4 and 5 of these Rules with respect to timeliness requirements, disputes between Members and Associates and between Associates shall be arbitrated under these Rules, at the election of the person filing the claim, unless:

(1) the parties, by valid and binding agreement, have committed themselves to the resolution of such dispute in a forum other than NFA;

(2) the parties to such dispute are all required by the rules of another self-regulatory organization to submit the controversy to the settlement procedures of that self-regulatory organization; or

(3) all parties to the dispute are members of a contract market which has jurisdiction over the dispute.

Once a claim is filed, arbitration is mandatory for the Member or Associate the claim is against.

(c) Counterclaims, Cross-claims and Third-party Claims.
Except as provided in Sections 4 and 5 of these Rules with respect to timeliness requirements, a counterclaim, cross-claim or third-party claim must be asserted in an arbitration brought under paragraph (a) above and may be asserted in an arbitration brought under paragraph (b) above if the counterclaim, cross-claim or third-party claim arises out of an act or transaction that is the subject of the Arbitration Claim.