National Futures Association
Encyclopedia
The National Futures Association (NFA) is an independent self-regulatory organization
and watchdog of the commodities and futures
industry in the United States
. The NFA oversees and protects investors from fraudulent commodities and futures activities. The NFA also provides mediation
and arbitration
for resolving consumer complaints. NFA is headquartered in Chicago, IL and also maintains an office in New York City.
established a federal regulatory agency called the Commodity Futures Trading Commission
(CFTC). Under the Commodity Exchange Act
, Congress gave jurisdiction over commodity and futures trading, and allowed the futures industry to create a national self-regulatory organization, which in 1982 would create the National Futures Association (NFA).
In 1998 the NFA created online access to the Background Affiliation Status Information Center (BASIC). BASIC, provides current and historical registration information, disciplinary actions of all current and former CFTC registrants.
Self-regulatory organization
A self-regulatory organization is an organization that exercises some degree of regulatory authority over an industry or profession. The regulatory authority could be applied in addition to some form of government regulation, or it could fill the vacuum of an absence of government oversight and...
and watchdog of the commodities and futures
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
industry in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The NFA oversees and protects investors from fraudulent commodities and futures activities. The NFA also provides mediation
Mediation
Mediation, as used in law, is a form of alternative dispute resolution , a way of resolving disputes between two or more parties. A third party, the mediator, assists the parties to negotiate their own settlement...
and arbitration
Arbitration
Arbitration, a form of alternative dispute resolution , is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons , by whose decision they agree to be bound...
for resolving consumer complaints. NFA is headquartered in Chicago, IL and also maintains an office in New York City.
History
In 1974, the United States CongressUnited States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
established a federal regulatory agency called the Commodity Futures Trading Commission
Commodity Futures Trading Commission
The U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
(CFTC). Under the Commodity Exchange Act
Commodity Exchange Act
Commodity Exchange Act is a federal act passed in 1936 by the U.S. Government ....
, Congress gave jurisdiction over commodity and futures trading, and allowed the futures industry to create a national self-regulatory organization, which in 1982 would create the National Futures Association (NFA).
In 1998 the NFA created online access to the Background Affiliation Status Information Center (BASIC). BASIC, provides current and historical registration information, disciplinary actions of all current and former CFTC registrants.