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Compliance Rules

Part 3 - Compliance Procedures


[Effective date of amendments: March 18, 1994 and September 30, 2019.]

(a) Duties.

There is hereby established a Department of Futures Compliance and a Department of OTC Derivatives Compliance (references to the "Compliance Department" shall mean either or both the Department of Futures Compliance and/or Department of OTC Derivatives Compliance, as the context requires), which shall conduct audits and examinations, and shall investigate violations of NFA requirements, prepare reports and conduct prosecutions, as provided in this Part. The Compliance Department shall commence investigations at the direction of the Commission; upon the discovery or receipt of information by NFA (such as complaints from customers or Members) that, in the Compliance Department's opinion, indicates a possible basis for finding that a violation has occurred; on the Compliance Department's own initiative. The Compliance Department shall have the authority to compel testimony, subpoena documents and require statements under oath from any Member, Associate or person connected therewith.

(b) Prohibitions.

NFA staff may not be a Member or Associate or have any connection, direct or indirect, with a Member or Associate, except as approved by the President. Except with the President's approval, NFA staff shall not trade, directly or indirectly, any commodity interest. For purposes of this Rule 3-1(b), a commodity interest shall be defined as any commodity futures or commodity option contract traded on or subject to the rules of a contract market or linked exchange, or cash commodities traded on or subject to the rules of a board of trade which has been designated as a contract market.