Bylaws

Chapter 7. Committees

BYLAW 709. MEMBER CATEGORY NOMINATING COMMITTEE.

[Adopted effective February 15, 2024.]

There shall be a Member Category Nominating Committee with four Member Category Nominating Subcommittees, one for each of the following categories of Members (i) FCMs and LTMs; (ii) IBs; (iii) CPOs and CTAs; and (iv) SDs, MSPs and RFEDs. Each Member Category Nominating Subcommittee shall be solely responsible for nominating at least one candidate for each position to be filled on the Board in the Subcommittee's category, in accordance with the eligibility requirements of Article VII of the Articles.

(a) Composition of Subcommittees


Each Member Category Nominating Subcommittee shall be composed of three representatives of the Subcommittee's category as follows:

(i) The FCM and LTM Subcommittee shall be composed of three representatives, including at least one (1) representative of FCMs ranked in the top ten FCMs and at least one (1) representative of FCMs or LTMs not ranked in the top ten FCMs based on the total of futures customer segregated funds, cleared swaps customer collateral and foreign futures or foreign options secured amounts, as those terms are defined in the applicable Commission regulations, held as of June 30 of the prior calendar year;

(ii) The IB Subcommittee shall be composed of three representatives, including at least one (1) representative of IBs required to maintain minimum adjusted net capital and at least one (1) representative of IBs not required to maintain minimum adjusted net capital;

(iii) The CPO and CTA Subcommittee shall be composed of three representatives that are NFA Members reporting funds under management allocated to futures and swaps (as defined in Article XVIII) on NFA Form PQR and NFA Form PR as of June 30 the prior calendar year (Funds Under Management Allocated to Futures and Swaps) including one (1) representative from CPOs or CTAs ranked within the top ten (10) percent based on Funds Under Management Allocated to Futures and Swaps; one (1) representative from CPOs or CTAs ranked within the top twenty (20) percent based on Funds Under Management Allocated to Futures and Swaps; and one at large representative from CPOs or CTAs with no restriction on its rank among CPOs and CTAs reporting Funds Under Management Allocated to Futures and Swaps; and

(iv) The SD, MSP and RFED Subcommittee shall be composed of three representatives, including at least one (1) representative of SDs that are Large Financial Institutions, as of June 30 of the prior calendar year and at least one (1) representative of SDs, MSPs or RFEDs that are not Large Financial Institutions, as of June 30 of the prior calendar year.

(b) Term of Subcommittee Members


Members of the Member Category Nominating Subcommittees shall serve staggered three-year terms from the date of the Board's regular annual meeting following the Annual Election at which they are elected until the date of the Board's regular annual meeting three years hence.

(c) Election of Subcommittee


Each Subcommittee shall nominate, for each position to be filled on its respective Subcommittee, one eligible individual for election by the Members to that Subcommittee. Additional nominations may be made for each position by petition in the manner set forth in Bylaw 406. The procedures for election shall be the same as those prescribed in Bylaw 406. If there is not a contested election in any Member Category Nominating Subcommittee, then the Subcommittee member who is to represent that category shall be elected to the Subcommittee by the Board. No person shall be nominated or elected to a Member Category Nominating Subcommittee who has served on the Member Category Nominating Subcommittee during the preceding term, and no person shall be nominated or elected to a Member Category Nominating Subcommittee who, at the time of such nomination or election, is a Director. Any vacancy that occurs on any Member Category Nominating Committee shall be filled by the Board from among persons eligible under this Bylaw to serve thereon.