NFA (National Futures Association)
The self-regulatory organization overseeing the U.S. futures and derivatives industry, operating under CFTC oversight.
What is NFA?
The National Futures Association (NFA) is the self-regulatory organization (SRO) for the U.S. futures and derivatives industry, operating under the oversight of the Commodity Futures Trading Commission (CFTC). All firms and individuals who conduct futures-related business with the public must be NFA members, including futures commission merchants (FCMs), commodity pool operators (CPOs), commodity trading advisors (CTAs), and introducing brokers (IBs). NFA's responsibilities include registration and background checks for market participants, writing and enforcing compliance rules, conducting examinations and audits, and arbitrating disputes. Investors can verify the registration and disciplinary history of any NFA member via the BASIC database on NFA's website.
Example
Before opening a managed futures account with a commodity pool operator (CPO), an investor visits NFA's BASIC database and searches for the firm. The results show the firm is registered, has no disciplinary history, and discloses the names of its principals. An unregistered firm offering futures services in the U.S. would be operating illegally and subject to CFTC enforcement.