Mandatory Membership

Mandatory membership is the cornerstone of NFA's regulatory structure, and makes effective industrywide self-regulation possible. NFA Bylaw 1101 prohibits NFA Members from doing business with most non-Members that are required to be registered with the CFTC as futures commission merchants (FCM), introducing brokers (IB), commodity pool operators (CPO) or commodity trading advisors (CTA). Members must examine their relationships with other registrants, customers, third-party account controllers, exempt firms and branch offices to ensure compliance with NFA Bylaw 1101.