The U.S. National Futures Association (NFA) has just published its 2015 Annual Review, entitled “Protection. That’s our purpose”, covering the activities of the organization for the period from July 1, 2014 to June 30, 2015.
The document includes the highlights for the period in question, including enforcement actions taken, fines collected and new important rules introduced.
Cybersecurity
As earlier reported by LeapRate, NFA is planning to tighten cybersecurity requirements for all of its members, including Forex brokers. The details can be found in NFA’s Interpretive Notice to NFA Compliance Rules 2-9, 2-36 and 2-49 entitled Information Systems Security Programs (ISSP). The notice, known also as the Cybersecurity Interpretive Notice, requires NFA members to adopt and enforce written policies and procedures to secure customer data and access to their electronic systems.
The new rules, set to become effective on March 1, 2016, require each Member to adopt and enforce an information systems security program (ISSP) appropriate to its circumstances.
Swiss franc events
The U.S. Commodity Futures Trading Commission (CFTC) in August approved rule amendments and a new interpretive notice filed by the NFA. The NFA proposed the rule amendments back in May, outlining critical changes in capital requirements, information disclosure and security deposits for U.S. based forex brokers.
The changes were introduced in response to the near collapse of an FDM member.
Enforcement action
- NFA’s restitution program disbursed more than $1.7 million to more than 250 harmed investors in fiscal year 2015.
- NFA collected $2.5 million in fines.
- NFA disciplinary panels issued 39 Decisions, and ordered 20 expulsions and 8 suspensions.
- NFA’s Business Conduct Committee issued 37 Complaints against 67 respondents.
- NFA’s Executive Committee issued four member responsibility actions /associate responsibility actions to protect investors.
NFA Members
At LeapRate we often discuss on how the US Forex market (or the broader market for online trading services in the US) is changing its shape. A table from the NFA provides an insight into the type and count of its members.
At the end of fiscal year 2015, NFA had a total of 4,026 members and more than 55,700 Associate Members. Below is a breakdown of NFA membership:
To view the full NFA 2015 Annual Review, click here.