Regulation of Futures Trading

Firms and individuals that conduct futures trading business with the public are subject to regulation by the CFTC and by NFA. All U.S. futures exchanges are regulated by the CFTC. NFA is a congressionally authorized self-regulatory organization subject to CFTC oversight. It exercises regulatory authority over Futures Commission Merchants, Introducing Brokers, Commodity Trading Advisors, Commodity Pool Operators and Associated Persons (salespersons) of all of the foregoing. NFA staff includes nearly 150 field auditors and investigators. In addition, NFA is responsibile for registering persons and firms required to be registered with the CFTC, including exchange floor brokers and traders.

Reprinted with permission from the National Futures Association. Copyright 2002.