ABOUT NFA
National Futures Association (NFA) is the industrywide selfregulatory
organization for the U.S. futures industry. NFA’s
mission is to provide innovative and efficient regulatory programs
and services that safeguard the integrity of the derivatives
markets and protect investors. NFA’s activities are overseen
by the Commodity Futures Trading Commission
(CFTC), the government agency responsible for regulating
the U.S. futures industry.
AN OVERVIEW
OF NFA’S MEMBERS
Virtually every firm or individual who conducts futures
or options on futures business with the public must be
registered with the CFTC and a Member of NFA. NFA
Membership categories include futures commission
merchants (FCMs), commodity trading advisors (CTAs),
commodity pool operators (CPOs) and introducing brokers
(IBs). There are approximately 4,200 NFA Member firms
and about 55,000 NFA Associate Members, individuals
associated with NFA Member firms.
THE HISTORY OF BASIC
In 1991, NFA created the Disciplinary Information Access Line
(DIAL), the nation’s first clearinghouse of disciplinary information
about futures firms and salespeople. The introduction of DIAL
allowed investors and others for the first time to get a “one-stop”
background check from government and self-regulatory sources
about the disciplinary history and other background of 150,000
individuals and 10,000 firms that either are now or have been
involved in the futures industry.
NFA moved this extensive database of information online in 1998
and re-named it BASIC. The service is offered free of charge and
can be accessed 24 hours a day through NFA’s Web site at
www.nfa.futures.org, or by calling NFA’s Information Center at
(800) 621-3570 between the hours of 8:00 a.m. and 5:00 p.m.
Central Time.
The information is available immediately. You do not need to
submit a request and wait days for it to show up in the mail.
Investors and other industry participants conduct more than
600,000 BASIC searches every year.
INFORMATION AVAILABLE IN BASIC
As an individual considering investing in the futures markets, you
should ask some fundamental questions regarding the firm and/or
individual you may be doing business with. BASIC will give you
the answers to most, if not all, of those questions. For example:
Is the person/firm registered with the CFTC?
BASIC contains current and historical registration information
concerning all current and former CFTC registrants, including
name, business address and registration history in the futures
industry.
Have there been any regulatory actions taken
against the firm/individual?
BASIC provides information concerning disciplinary actions
taken by NFA, the CFTC and all the U.S. futures exchanges. If
you are researching a firm, you should also conduct a background
check of all the individuals listed as principals of the firm.
Sometimes the firm will have no disciplinary history, but one or
more of the principals may have been disciplined while working
at other firms.
Has the firm/individual been named in any dispute resolution cases?
BASIC gives you details concerning NFA arbitration matters involving disputes
between investors and NFA Members if the case went to hearing and an award was
issued after January 1, 1990. You will also find summary data concerning the number of cases filed with the CFTC’s reparations program.
INFORMATION NOT AVAILABLE
IN BASIC
BASIC does not include information about civil actions between
parties (other than summary information concerning CFTC reparations
or NFA arbitrations), criminal proceedings or actions taken
by other federal regulatory agencies or self-regulatory organizations
in other industries. BASIC also does not include information
about pending NFA arbitration cases or cases without an award.
Regulatory actions taken by futures exchanges prior to 1990 may
not be included, because while some contributors have entered
them, others have not. Finally, although information regarding
pending cases at NFA and the CFTC can be found in BASIC,
pending exchange complaints that have not been adjudicated are
not included.
HOW TO CONDUCT A BASIC SEARCH
There are four ways to conduct a search in BASIC:
■ Search by NFA ID
■ Search by Individual Name
■ Search by Firm Name
■ Search by Pool Name
Searching by NFA ID number is by far the most efficient and
precise search option. With some exceptions, every individual or
other type of entity that wishes to conduct futures-related business
with customers, must apply for and obtain CFTC registration and
NFA membership. In most cases, an individual or entity that has
applied for CFTC registration or NFA membership, in the past 20
years, is assigned its own NFA ID. An NFA ID can have as few as
one digit and up to seven digits. An NFA ID is assigned to one
entity and it is not used more than once. We recommend that you
contact the individual or firm and request their NFA ID before
using BASIC. If you are unable to obtain the party’s specific NFA
ID, you can also conduct a search using the individual’s name, the
firm’s name or the name of a commodity pool.
If the individual or firm is unable or unwilling to provide you
with an NFA ID number or if you have entered an NFA ID that
you are certain is correct and “No Current Status” displays, you
may be dealing with an entity not registered with the CFTC and
not an NFA Member. Conducting futures-related business with
these individuals or firms could cause you problems.
If you think you are dealing with an individual or firm not registered
with the CFTC and not an NFA Member, please send an
e-mail or call NFA’s Information Center toll free at (800) 621-3570
between the hours of 8:00 a.m. and 5:00 p.m. Central Time
In addition to BASIC, NFA publishes several informational
brochures for the investing public, including:
■ Opportunity and Risk: An Educational Guide
to Trading Futures and Options on Futures
■ Security Futures Products
■ Trading in the Retail Off-Exchange
Foreign Currency Market:
What Investors Need to Know
All of these brochures are available at no cost. You can either download
them from NFA’s Web site (www.nfa.futures.org), or you can
order copies by calling NFA’s Information Center.
Investing in the futures markets is a high-risk, volatile venture. Don’t add
to your risk by giving your money to a firm or individual that you know
little or nothing about. Always remember to conduct a background search
using NFA’s BASIC system as part of your overall due diligence.
sources : Newsletter from http://www.interbankfx.com
National Futures Association (NFA) is the industrywide selfregulatory
organization for the U.S. futures industry. NFA’s
mission is to provide innovative and efficient regulatory programs
and services that safeguard the integrity of the derivatives
markets and protect investors. NFA’s activities are overseen
by the Commodity Futures Trading Commission
(CFTC), the government agency responsible for regulating
the U.S. futures industry.
AN OVERVIEW
OF NFA’S MEMBERS
Virtually every firm or individual who conducts futures
or options on futures business with the public must be
registered with the CFTC and a Member of NFA. NFA
Membership categories include futures commission
merchants (FCMs), commodity trading advisors (CTAs),
commodity pool operators (CPOs) and introducing brokers
(IBs). There are approximately 4,200 NFA Member firms
and about 55,000 NFA Associate Members, individuals
associated with NFA Member firms.
THE HISTORY OF BASIC
In 1991, NFA created the Disciplinary Information Access Line
(DIAL), the nation’s first clearinghouse of disciplinary information
about futures firms and salespeople. The introduction of DIAL
allowed investors and others for the first time to get a “one-stop”
background check from government and self-regulatory sources
about the disciplinary history and other background of 150,000
individuals and 10,000 firms that either are now or have been
involved in the futures industry.
NFA moved this extensive database of information online in 1998
and re-named it BASIC. The service is offered free of charge and
can be accessed 24 hours a day through NFA’s Web site at
www.nfa.futures.org, or by calling NFA’s Information Center at
(800) 621-3570 between the hours of 8:00 a.m. and 5:00 p.m.
Central Time.
The information is available immediately. You do not need to
submit a request and wait days for it to show up in the mail.
Investors and other industry participants conduct more than
600,000 BASIC searches every year.
INFORMATION AVAILABLE IN BASIC
As an individual considering investing in the futures markets, you
should ask some fundamental questions regarding the firm and/or
individual you may be doing business with. BASIC will give you
the answers to most, if not all, of those questions. For example:
Is the person/firm registered with the CFTC?
BASIC contains current and historical registration information
concerning all current and former CFTC registrants, including
name, business address and registration history in the futures
industry.
Have there been any regulatory actions taken
against the firm/individual?
BASIC provides information concerning disciplinary actions
taken by NFA, the CFTC and all the U.S. futures exchanges. If
you are researching a firm, you should also conduct a background
check of all the individuals listed as principals of the firm.
Sometimes the firm will have no disciplinary history, but one or
more of the principals may have been disciplined while working
at other firms.
Has the firm/individual been named in any dispute resolution cases?
BASIC gives you details concerning NFA arbitration matters involving disputes
between investors and NFA Members if the case went to hearing and an award was
issued after January 1, 1990. You will also find summary data concerning the number of cases filed with the CFTC’s reparations program.
INFORMATION NOT AVAILABLE
IN BASIC
BASIC does not include information about civil actions between
parties (other than summary information concerning CFTC reparations
or NFA arbitrations), criminal proceedings or actions taken
by other federal regulatory agencies or self-regulatory organizations
in other industries. BASIC also does not include information
about pending NFA arbitration cases or cases without an award.
Regulatory actions taken by futures exchanges prior to 1990 may
not be included, because while some contributors have entered
them, others have not. Finally, although information regarding
pending cases at NFA and the CFTC can be found in BASIC,
pending exchange complaints that have not been adjudicated are
not included.
HOW TO CONDUCT A BASIC SEARCH
There are four ways to conduct a search in BASIC:
■ Search by NFA ID
■ Search by Individual Name
■ Search by Firm Name
■ Search by Pool Name
Searching by NFA ID number is by far the most efficient and
precise search option. With some exceptions, every individual or
other type of entity that wishes to conduct futures-related business
with customers, must apply for and obtain CFTC registration and
NFA membership. In most cases, an individual or entity that has
applied for CFTC registration or NFA membership, in the past 20
years, is assigned its own NFA ID. An NFA ID can have as few as
one digit and up to seven digits. An NFA ID is assigned to one
entity and it is not used more than once. We recommend that you
contact the individual or firm and request their NFA ID before
using BASIC. If you are unable to obtain the party’s specific NFA
ID, you can also conduct a search using the individual’s name, the
firm’s name or the name of a commodity pool.
If the individual or firm is unable or unwilling to provide you
with an NFA ID number or if you have entered an NFA ID that
you are certain is correct and “No Current Status” displays, you
may be dealing with an entity not registered with the CFTC and
not an NFA Member. Conducting futures-related business with
these individuals or firms could cause you problems.
If you think you are dealing with an individual or firm not registered
with the CFTC and not an NFA Member, please send an
e-mail or call NFA’s Information Center toll free at (800) 621-3570
between the hours of 8:00 a.m. and 5:00 p.m. Central Time
In addition to BASIC, NFA publishes several informational
brochures for the investing public, including:
■ Opportunity and Risk: An Educational Guide
to Trading Futures and Options on Futures
■ Security Futures Products
■ Trading in the Retail Off-Exchange
Foreign Currency Market:
What Investors Need to Know
All of these brochures are available at no cost. You can either download
them from NFA’s Web site (www.nfa.futures.org), or you can
order copies by calling NFA’s Information Center.
Investing in the futures markets is a high-risk, volatile venture. Don’t add
to your risk by giving your money to a firm or individual that you know
little or nothing about. Always remember to conduct a background search
using NFA’s BASIC system as part of your overall due diligence.
sources : Newsletter from http://www.interbankfx.com
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