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Commodity Future Exchange
A commodity future trading is subject to regulation by
the CFTC and the NFA oversees firms and individuals that
conduct commodity futures trading business with the
public. All futures exchanges are also regulated by the
CFTC. NFA is a congressionally authorized
self-regulatory organization subject to CFTC oversight.
It exercises regulatory Authority with the CFTC over
Futures Commission Merchants, Introducing Brokers,
Commodity Trading Advisors, Commodity Pool Operators and
Associated Persons (salespersons) of all of the
foregoing. The NFA has field auditors and investigators.
NFA also has the responsibility for registering persons
and firms that are required to be registered with the
CFTC.
Commodity Future Exchange Firms
Violators of NFA rules of professional ethics or
conduct, or failure to comply with financial and record
keeping requirements can be fined, barred from the
industry, or referred to the Department of Justice for
criminal prosecution. Futures Commission Merchants which
are members of an exchange are subject to CFTC and NFA
regulation and also regulation by the exchanges of which
they are members. Exchange regulatory staffs are
responsible for the business conduct and financial
responsibility of their member firms. Violations of
exchange rules can result in substantial fines,
suspension or revocation of commodity future trading
privileges, and loss of exchange membership.
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