The CFTC has approved amendments to NFA bylaws 1301 and 1302, as well as the related interpretive notice “Forex Transactions”. These changes modify the existing annual membership fee structure in order to more effectively account for increased auditing costs. The amendments were initially proposed to the CFTC by rule submission letter in early September.
Under the new fee structure, dues for non-Forex Dealer Member (“FDM”) NFA members will increase from $750 to $2,500. This includes Introducing Brokers (“IBs”), Commodity Pool Operators (“CPOs”) and Commodity Trading Advisors (“CTAs”) that are also designated as forex firms.
FDMs will be subject to a .002% fee on all transactions processed through the NFA’s new reporting platform (Forex Transaction Reporting Execution Surveillance System, or “FORTRESS”). However, the NFA is eliminating a fee of .0002% on the notional value of each initiating forex transaction. Any FDM for which the NFA is not the designated self-regulatory organization will see an increase in annual membership dues from $13,500 to $25,000. Those FDMs for which the NFA is the designated self-regulatory organization will abide by a new graduated schedule based on gross revenue to determine their annual dues.
Read more about these NFA bylaw amendments.
photo credit: jez`
