National Futures Association

Formed by members of the U.S. derivatives industry, the National Futures Association (NFA) is the self-regulatory organization for the U.S. derivatives industry, responsible for promoting accountability in the marketplace to ensure transparency, fairness, and integrity within the industry.

The Commodity Futures Trading Commission (CFTC) designated the NFA as a registered futures association, enabling the industry to create, implement, and monitor innovative regulatory programs that ensure the stability of derivatives markets, protect clients, and hold those who interact with clients accountable to Federal regulations.

NFA adheres to best practices of regulatory accountability surrounding the derivatives industry to promote and sustain confidence within the sector.

Background/History

In 1974, Congress established the Commodity Futures Trading Commission (CFTC) as an independent Agency charged with regulating futures and derivatives markets.

NFA was designated as a registered futures association on September 22, 1981, and began regulatory activities in 1982.In that time, NFA has evolved as a fundamental pillar of oversight for the U.S. derivatives industry.

Governance

NFA's primary governance and policy-setting authority is the Board of Directors.The governance structure is balanced by Member Directors, who represent the NFA membership, and Public Directors, who provide independent input regarding decision-making.

Mandatory Membership

Mandatory membership is the foundation of NFA's regulatory approach.