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Wed, 15 Sep 2017— Amendments to Bylaw 301. An explanation of the amendments and Interpretive Notice can be found in the August 30, 2017 rule submission letter.
Wed, 15 Sep 2017— Amendments to Registration Rules. An explanation of the amendments and Interpretive Notice can be found in the August 30, 2017 rule submission letter.
Wed, 15 Sep 2017— Amendments to Compliance Rule 2-9: NFA Interpretive Notice NFA Compliance Rule 2-9: Special Supervisory Requirements for Members Registered as Broker Dealers Under Section 15(b)(11) of the Securities Exchange Act of 1934. An explanation of the amendments and Interpretive Notice can be found in the August 30, 2017 rule submission letter.
Part 300. Temporary Licenses
RULE 303. TEMPORARY LICENSING FOR FLOOR BROKERS AND FLOOR TRADERS
[Adopted effective January 6, 1999. Effective dates of amendments: May 31, 2002; July 18, 2012 and September 15, 2017.]
(a) Qualifications. Notwithstanding any other provision of these Rules, and pursuant to the terms and conditions of this Rule, NFA may grant a TL to any applicant for registration as a FB or FT upon the filing with or receipt by NFA of:
(1) a Form 8-R completed and filed in accordance with all pertinent instructions;
(2) the fingerprints of the applicant on a fingerprint card provided by NFA for that purpose, if required;
(3) the registration fee by Rule 203(a), if applicable;
(4) if the applicant is subject to a Commission or NFA order imposing conditions on the applicant's registration, an Acknowledgement of Conditioned Registration executed by a sponsor that meets the requirements contained in Rule 509(b)(5); and
(5) satisfactory evidence that the applicant has been granted trading privileges by a contract market or SEF 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.
(c) Restrictions Upon Activities. An applicant for registration as a FB who has received notification that a TL has been granted may act in the capacity of a FB. An applicant for registration as a FT who has received notification that a TL has been granted may act in the capacity of a FT. Any temporarily licensed applicant acting in the capacity of a FT or FB shall be subject to all Commission rules, regulations and orders.
(d) Termination of a Temporary License.
(1) A TL shall terminate:
(A) five days after service of a notice by NFA pursuant to Rule 504 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 Acknowledgement of Conditioned Registration described in paragraph (a)(1)(D) 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) or to submit or 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 or SEFs that filed the certification described in Commission Regulation 3.40(a)(2)(iv) that granted such privileges;
(F) upon notice to the applicant or the contract market or SEF 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 Commission Rule 166.5 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, SEF or other appropriate arbitration forum;
(ii) the applicant failed to pay the full amount of a reparations 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, restitution or disgorgement within the time permitted under Sections 6(e), 6b or 6c(d) of the Act;
(iv) the applicant failed to disclose relevant disciplinary information in response to the disciplinary information questions on the Form 8-R; or
(v) subsequent to the filing of the Form 8-R, an event has occurred leading to an affirmative response to the disciplinary information questions on the applicant's Form 8-R.
(2) Upon termination of a TL, the applicant may not engage in any activity that requires registration with the Commission as a FB or FT.
(e) Relationship to Registration.
(1) A TL shall not be deemed to be a registration or to confer any right to such registration.
(2) Unless a TL has been terminated, a TL 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 FB or FT; or
(B) the expiration of six months from the date of its issuance unless NFA has issued a notice pursuant to Rule 504 that the applicant may be disqualified from registration under Sections 8a(2) through 8a(4) of the Act.