CFTC Final Rule: Membership in a Registered Futures Association

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On September 10, 2015, the U.S. Commodity Futures Trading Commission (CFTC) issued a final rule, new Commission regulation 170.17, requiring that all registered introducing brokers and commodity pool operators, and certain commodity trading advisors (CTAs) become and remain members of a registered futures association (RFA). The rulemaking entered the Federal Register on September 14, 2015 and the effective date is November 13, 2015. All persons subject to the final rule must comply by December 31, 2015.


Current CFTC regulations require futures commission merchants (‘‘FCMs’’), swap dealers (‘‘SDs’’) and major swap participants (‘‘MSPs’’) to become a member of an RFA, subject to an exception for certain notice registered brokers or dealers. However, there is no such mandatory membership requirement for other registrants. In the absence of a mandatory membership requirement, registrants not already members of an RFA would still be subject to CFTC rules, which means the commission would need to perform RFA functions for these participants. This proposal would require these entities to register with an RFA.

Currently, the National Futures Association (NFA) is the only registered RFA in the U.S.

On November 5, 2013, the CFTC proposed a rule that would require that all persons registered with the Commission as introducing brokers (IBs), commodity pool operators (CPOs), and commodity trading advisors (CTAs) become and remain members of at least one registered futures association (RFA). Currently, the National Futures Association (NFA) is the only RFA.<ref>CFTC Issues Proposed Rule to Require All Registered Introducing Brokers, Commodity Pool Operators, and Commodity Trading Advisors to Become and Remain Members of a Registered Futures Association. CFTC. Retrieved on December 2, 2013.</ref>

The proposed rule entered the Federal Register on November 8, 2013 and the deadline for public comment was January 17, 2013.

Related Document: Federal Register Entry[edit]


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