A SUCCESSFUL PARTNERSHIP—THE CFTC AT 50 YEARS
The CFTC formally designated NFA as an RFA in September 1981. In 1982, NFA began its regulatory operations with a clearly defined mission: safeguard the integrity of the derivatives markets, protect investors and ensure that NFA Members meet their regulatory responsibilities. Together, the CFTC and NFA established a complementary public-private framework to effectively oversee the derivatives industry. The CFTC provides front-line oversight of exchanges, clearinghouses, swap execution facilities and self-regulatory organizations, while NFA provides front-line oversight of the industry’s registered market participants. NFA and the CFTC are valued regulatory partners who are committed to protecting the customers of the derivatives markets. The derivatives industry’s
public-private regulatory framework has adapted to changing and innovative products and markets, which have experienced extraordinary growth over the years. When the CFTC’s anti-fraud jurisdiction and rulemaking authority expanded in 2008 to capture retail foreign exchange trading—and in 2010 when Dodd-Frank gave the CFTC oversight of the previously unregulated swaps market—NFA took on additional oversight responsibilities in support of the CFTC. NFA’s principal objective is to assist the CFTC and, in doing so, to optimize the “self” in self-regulation. NFA performs seven primary functions: registration, rulemaking, monitoring Members, enforcement and disciplinary process, investor protection and education, and dispute resolution. NFA’s performance of these functions allows the CFTC to allocate its resources effectively and efficiently.
Together, the CFTC and NFA established a complementary public-private framework to effectively oversee the derivatives industry.
6 NFA 2025 ANNUAL REVIEW
Made with FlippingBook - PDF hosting