It’s also known as a derivative because future contracts derive their value from an underlying asset. No knowledge of C is required. These textbooks will help you prepare for the the National Commodities Futures Exam - Series 3 Exam, and will later become a professional desk reference set, once you pass the test. Learning Outcome. NFA Series 3 Exam Basic Study Set Details. The NFA creates rules that its members must follow. The NFA operates at no cost to the taxpayer and is primarily financed by membership dues, fees, and For those within the commodity industry, the database is commonly known as BASIC (Background Affiliation Status … The NFA requires all qualified brokers, futures merchants, commodity pool operators, and advisors to register their business. The National Futures Association (NFA) is a self-regulatory organization that works to protect investors and regulate the financial derivatives market in the United States. A self-regulatory organization that regulates the U.S. derivatives industryLearn 100% online from anywhere in the world. The NFA began operating in 1982, subsequent to the establishment of the The offers that appear in this table are from partnerships from which Investopedia receives compensation. A retail foreign exchange dealer (RFED) acts as the counterparty to an off-exchange, over-the-counter foreign currency transaction. The firm and two individuals were charged for the use of deficient promotional material, deficient sales practices, and failing to meet the high standards of commercial honor, among several other charges. NFA membership is mandatory for a large number of firms in the market, as mandated by the Commodity Exchange Act (CEA) and the Commodity Futures Trading Commission (CFTC).The National Futures Association began operating in 1982 after the derivatives industry was given the opportunity to create a The NFA is headquartered in Chicago, Illinois in the United States.
Commodity pools are firms that combine the funds received from members with the aim of trading derivatives, such as futures, options, swap contracts, and forex contracts.Commodity trading advisors (CTAs) are similar to CPOs in that they help investors to trade commodities in exchange for compensation or profits. It offers an arbitration process to help customers and businesses settle disputes or come to a resolution on allegations of wrong-doing. NFA Series 3 Exam Basic Study Set. The NFA is responsible for the membership and registration of members.The NFA is also responsible for identifying and mandating industry best practices that benefit all the stakeholders that are involved, including member firms and investors.The NFA imposes disciplinary actions against members that violate regulations in the form of assessment fees and other trading restrictions.One of the recent cases of enforcement was evident in a complaint against Westline Capital Strategies, Inc. (Westline), a firm that was then charged with “failing to uphold just and equitable principles of trade” for overexercising a customer’s funds without discretion, resulting in a $25,000 fine.The NFA provides regulatory services to designated contract markets (DCMs) and swap execution facilities that oversee and monitor trading on their platforms.In addition to the enforcement of rules, the NFA acts as an arbitrator and works to resolve disputes that are related to derivative trades. … National Association of Federally-Insured Credit Unions (NAFCU)The National Association of Federally-Insured Credit Unions (NAFCU) is a membership-based trade organization for credit unions insured by the federalThe National Securities Clearing Corporation (NSCC) provides risk management, settlement, and clearing services to the U.S securities exchange marketThe National Association of Securities Dealers (NASD) was a regulatory body responsible for overseeing the securities industry. Also included are regulatory and non … Association("NFA") Background Affiliation Status Information Center ("BASIC"). The NFA is an independent, non-profit organization and it is funded by membership and assessment fees from a majority of firms that operate in the derivatives industry. In 1998, as a way to create a transparent environment, the NFA created BASIC, which is essentially an online database that shows all disciplinary actions for individuals and companies that manage the market.