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Interpretive Notices


9067 - NFA BYLAW 1301(b): NFA'S ASSESSMENT FEE - DIMINUTIVE NOTIONAL VALUE CONTRACTS AND SECURITY FUTURES PRODUCTS

(Board of Directors, May 17, 2012; effective September 1, 2012. Revised January 3, 2013.)

INTERPRETIVE NOTICE

From time to time, upon application by a contract market or exempt commercial market, the Executive Committee may designate certain contracts as diminutive notional value ("DNV") contracts. These contracts typically have a notional value of $100 or less. The NFA assessment fee for DNVCs shall be $0.00008 per round-turn, with a minimum fee of $.01 per round-turn in the event that a customer trades less than 100 contracts. If any computation results in a fraction of a cent, the fee should be rounded to the nearest penny. For example:

  • Customer A purchases and sells 100 DNV contracts. Customer A's round-turn assessment fee is $.01 (100 contracts purchased and sold multiplied by $0.00008 equals $0.008). However, the minimum amount due for a trade of less than 100 contracts is $.01);

  • Customer B purchases and sells 150 DNV contracts. Customer B's round-turn assessment fee is $.01 (150 contracts purchased and sold multiplied by $0.00008 equals $.012. Rounding down to the nearest penny results in an assessment fee due of $.01);

  • Customer C purchases and sells 10,000 DNV contracts. Customer C's round-turn assessment fee is $.80 (10,000 contracts purchased and sold multiplied by $0.00008 equals $.80). No rounding is necessary.

  • Customer D purchases and sells 150,000 DNV contracts. Customer D's round-turn assessment fee is $12 (150,000 contracts purchased and sold multiplied by $0.00008 equals $12). No rounding is necessary.

NFA will list qualifying DNV contracts on its website in an attachment to the Interpretive Notice entitled NFA Bylaw 1301: NFA Assessment Fee Questions and Answers for FCMs.

In addition to adopting this fee of $0.00008 per round-turn with a minimum fee of $.01 per round-turn and the rounding methodology described above for DNVs, the Board has also at this time decided to adopt this fee structure for security futures products.