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Chapter 39, Part III. Forex Scam - Emergency Call. Page 3

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 28, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

    Aug 28, 2009
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    NFA - National Futures Association

    Commander in Pips: Pips: But that is not all yet. As we’ve said in 1974 Congress established the CFTC. Under the Commodity Exchange Act, Congress gave it jurisdiction over commodity and futures trading, and allowed the futures industry to create a national self-regulatory organization, which in 1982 would create the National Futures Association (NFA). In 1998 the NFA created online access to the Background Affiliation Status Information Center (BASIC). BASIC, provides current and historical registration information, disciplinary actions of all current and former NFA registrants.

    And why does the US need two equal regulators, what’s the difference?

    Commander in Pips: They are not equal. While CFTC is a government authority, the NFA is a self-regulated independent organization, which means that it financed by itself and not by taxpayers from the government's budget. Since the government authority is CFTC, the NFA stands under CFTC oversight. Still they are designed to act together. The NFA also works to prevent frauds and illegal action on financial markets, controls NFA members to meet regulatory requirements and be conducive to the overall development and proper functioning of futures markets.

    It also provides mediation and arbitration for resolving consumer complaints. The NFA is headquartered in Chicago, IL and also maintains an office in New York City.

    In fact to make protection of individual investors stronger, every firm (or even individual) who conducts futures or options on futures business with public has to be registered as a CFTC and NFA member. According to the NFA classification these firms or individuals who provide trading services to public could be:

    - Futures Commercial Merchants (FCM);

    - Introducing Brokers (IB);

    - Commodity Trading Advisors (CTA);

    - Commodity Pool Operators (CPO)

    To get access to the public’s money or provide them any services on futures markets firms and individuals have to pass through the registration process, fill out a regular statement and constantly meet regulator’s requirements. That is not simple. To accomplish that those firms have to be really serious.

    As with the CFTC, the NFA is developing and changing. We’ve already said about online BASIC program in 1998. In the beginning of 2000s NFA starts to accept claims online and launched registration online as well.

    Here is website of the : NFA - National Futures Association

    And what about other countries? Do they have authorities of the same kind?

    Commander in Pips: Yes sure. Almost all developed countries have ones…many emerging countries also have them. For example:

    - Russian authority is FSFM –Federal Service for Financial Markets,

    - Federal Securities Commission, Comissao de Valores Mobiliarios (CVM) – in Brazil, etc.
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