The main functions of the NFA is to enable members of the NFA in strict compliance with federal law and rules established by the CFTC, the implementation of strict management. NFA also has its own rules for supervision of brokers, traders and investors of the code of conduct, so that traders and investors from deception. From the fact that a lot of evidence of the NFA management model is successful. For example, at the beginning of activities of the NFA after 20 years, the United States Futures Exchange, and trading volume in the foreign exchange market has expanded several times. At the same time, customer complaints decreased by 72%.
NFA crack down on fraudulent brokers fraud measures
Strict supervision. NFA to prepare for the foreign exchange market in the United States and the Futures Exchange operates in all businesses and individuals to adopt strict and careful investigation. NFA has the right to refuse to grant, cancel, limit or terminate any company or individual membership. NFA on a regular basis to all members of the documents and financial statements for audit and inspection to ensure that they strictly abide by the CFTC’s legal requirements and rules established by the NFA.
Severely punish irregularities. NFA has adopted a series of advertisements, telemarketing, to disclose the risks, discretionary trading, the charges said, the minimum capital threshold, the level of professional examinations, such as strict requirements. NFA has the right to any violation of the provisions of the NFA companies and individuals to take disciplinary action. According to the severity of disciplinary action, from the “minor foul warning letters” to the formal proceedings, and so on a variety of ways. And litigation relating to the punishment, including the abolition of the deadline for the time being detained for membership or to prohibit any member of the NFA in the future and maintain any relationship, warned that a serious warning for each violation and is punishable by up to 250,000 U.S. dollars fine, and so on. NFA also with the CFTC, the Federal Bureau of Investigation and other law enforcement agencies in the judicial cooperation in the investigation process.
And “broker liar” struggle. In 1993, NFA introduced some new provisions, including on “advertising and marketing”, designed to minimize the brokerage services of fraud, conspiracy behavior. The new procedures require records to tape phone conversations and save those records, to keep the increase in the minimum amount of funds and all advertising materials will be sent to the NFA approval. The implementation of this rule has significantly reduced foreign exchange futures market, “bad company” and “liar brokers,” the number.
How to inform the NFA traders and investors
On-line software BASIC. NFA from the early days of efforts to give traders and investors to take information security measures and financial needs. In 1998, NFA has been put into use to? Background Affiliation Status Information Center? (BASIC) naming system. NFA can click on Web site (http://www.nfa.futures.org/) in the Broker / Firm Information (http://www.nfa.futures.org/basicnet/) link BASIC access to the system. It is included on the CFTC and a member of the present and past members of the previous registration information. The system also contains on the NFA, CFTC and other agencies of the United States to take disciplinary measures. You can search for their own use of the BASIC system, you find interesting about Forex Club Financial Company Inc, all of its staff, the person in charge.
Investors learning materials. In order for investors to understand the operation of foreign exchange futures market and the principle of trading risk and the possibility of profit, NFA issued a series of pamphlets. NFA to provide this information free of charge. You can e-mail (information@nfa.futures.org) or call NFA Information Center Tel +1 (312) 781-1410 scheduled, but also from the NFA Web site (http://www.nfa.futures.org/investor / publications.asp) to download.
NFA how traders and investors to resolve the litigation?
Arbitration. NFA from 1983 to engage in arbitration business, provides a convenient, efficient and economical to address traders, investors and brokers between the differences and disputes. Since then, NFA arbitration throughout the became the main foreign exchange trades futures means of dispute resolution. In October 2001, NFA into financial transactions in the industry first started to accept arbitration over the Internet to apply for the mediation agency. The formal application for hearing, the two sides can be selected on the appropriate time and place, arrangements for the trial. Traders can accept the services of a lawyer, but it can not be (in this way might dispense with the cost of legal services). Traders can easily accept the Court of Arbitration of the NFA, which will fundamentally change the quality of service brokers and reduce the occurrence of the phenomenon violating the law and become a global foreign exchange futures market to the formal one of the main contributing factor.
