1. How are firm, associated person and principal applications for registration filed?
   
2. How do I file an application for registration as a Floor Broker or Floor Trader?
   
3. Can I authorize someone else to file my application for registration as a Floor Broker or Floor Trader for me?
   
4. If I am an individual applying for registration as an associated person or I am an individual who is a principal, can I file my own application?
   
5. Can my firm let me fill out the application?
   
6. If I am an AP applicant or an individual who is a principal, do I need to verify the accuracy of the information contained in the application that the firm files for me?
   
7. Why do I have to file a verification? Isn't my firm's submission of the application sufficient?
   
8. If the information in the application is not accurate, can I correct it and then file the verification?
   
9. If I am an AP applicant or an individual who is a principal of a firm, can I authorize someone else to file the verification on my behalf?
   
10. Are there different versions of the applications in ORS?
    
11. If I am already registered or a principal, do I ever have to file a complete application and verification in ORS instead of a "short" form?
    
12. Besides the information requested in the Online Registration System, are there any additional filing requirements I need to be aware of?
    
13. How long after my application is filed do I have to submit the rest of the required information?
    
14. Do sole proprietors need to complete both the firm and individual applications?
    
15. Which individuals are considered principals?
    
16. Which companies are considered principals?
    
17. If my firm is notice registered as an FCM or IB, what must it do to also register as a CPO or CTA?
    

Firms may authorize anyone to file applications on their behalf. The firm authorizes persons to file applications when the firm's Security Manager establishes the person as a "file" security level user.

The Online Registration System tutorials contain detailed instructions on how to complete the application, update and withdrawal paths for most situations.

How do I file an application for registration as a Floor Broker or Floor Trader?
Individuals who wish to apply for registration as a floor broker or floor trader must electronically file their applications using ORS.

Can I authorize someone else to file my application for registration as a Floor Broker or Floor Trader for me?
No. Applicants for registration as floor brokers or floor traders must file their own applications. Unlike AP applicants and individual principals, who must file a verification of the information in the application that their sponsor files for them, floor broker and floor trader applicants verify the accuracy of the information when they file their application.

If I am an individual applying for registration as an associated person or I am an individual who is a principal, can I file my own application?
No, your sponsor must file your application for registration as an AP and as a principal.

Can my firm let me fill out the application?
Yes. After the firm starts an application for you in ORS, a temporary UserID and password will be displayed online for the firm to give to you. You may use this to access your application and fill it out, but you will not be able to file it. After you are finished, you will need to inform your firm that your application is ready to be filed.

If I am an AP applicant or an individual who is a principal, do I need to verify the accuracy of the information contained in the application that the firm files for me?
Yes. After your sponsor files the application, using ORS, you will need to electronically file a verification of the information contained in the application. Your sponsor will provide you with the temporary UserID and password that you will need to access your application in ORS. If your firm already gave you a Temporary UserID and password to fill out the application, you will use them again to access the application, review the information and, if everything is correct, file the verification. However, if the applicant or principal is already pending, temporarily licensed, registered or approved, a verification is not required.

Why do I have to file a verification? Isn't my firm's submission of the application sufficient?
No. Sponsors are not required to keep hard copies of any electronic filings made in ORS and you are not required to manually sign a hard copy version of the application. Instead, the CFTC requires that an applicant must file the electronic verification in lieu of a manually signed, hard copy application form.

If the information in the application is not accurate, can I correct it and then file the verification?
No. You must tell your sponsor what information is not accurate and your sponsor must correct it by filing an update. After the sponsor has corrected any inaccuracies, it will notify you that you can access the application again and file the verification.

If I am an AP applicant or an individual who is a principal of a firm, can I authorize someone else to file the verification on my behalf?
No. You must file the verification. Even if someone else files the verification for you using your UserID and password, you are responsible for any inaccurate information. As a result, you may be disqualified from becoming registered because the application contains false information or omits information.

Are there different versions of the applications in ORS?
Yes. If the applicant or individual principal is already pending, temporarily licensed, registered or approved, there are "short" application paths that will request only any additional information needed to file the new application. The most common of these "short path" applications are registered APs applying as a principal or to be dually registered with another sponsor and principals applying to become an AP. Individuals filing "short path" applications do not need to submit fingerprint cards, pay fees or file a verification.

If I am already registered or a principal, do I ever have to file a complete application and verification in ORS instead of a "short" form?
Yes, but the only time that this will happen is the first application you file in ORS. NFA is requiring this to make sure it has complete and accurate data, especially answers to the Disciplinary Information questions, which have changed.

Besides the information requested in the Online Registration System, are there any additional filing requirements I need to be aware of?
Yes. Additional filings include the following:

FCMs and IBs
All applicants for registration as an FCM must file certain financial statements and other documents. NFA must receive from an FCM applicant either an audited financial report within 45 days of the statement date or an audited financial report within one year of the statement date and an unaudited financial report within 17 business days of the statement date.

An applicant for registration as an IB must file either financial statements and other documents or a guarantee agreement. NFA must receive the IB's audited statement within 45 days of the statement date or an audited financial report within one year of the statement date and an unaudited financial report within 17 business days of the statement date. Instead of filing an audited statement, an IB applicant, except those switching from guaranteed to independent status, may file only an unaudited financial report. NFA must receive the unaudited financial report within 17 business days of the statement date. An IB applicant that files only an unaudited financial statement will be subject to an on-site review by NFA within six months of its registration date. NFA may still require an applicant to file an audited financial report before accepting an independent IB for Membership.

For the purpose of preparing such reports, the applicant may use Form 1-FR-FCM or Form 1-FR-IB (Part A) or a SEC FOCUS Report (if the applicant is registered with the SEC as a broker/dealer). The audited Form 1-FR-FCM or Form 1-FR-IB (Part A) or SEC FOCUS Report must be accompanied by an auditor's opinion covering all required statements and an auditor's Report on Internal Control. In addition, an oath or affirmation must be accompanied with the statements that to the best knowledge and belief of the individual making such oath or affirmation the information contained in the statements are true and correct. If the applicant is a sole proprietorship, then the oath or affirmation must be made by the proprietor; if a partnership, by a general partner; or if a corporation, by the chief executive officer or chief financial officer.

Note: If you are required to file Form 1-FR-FCM or Form 1-FR-IB (Part A) or if you elect to file an SEC FOCUS Report, refer to NFA Financial Requirements in the NFA Manual. NFA suggests that you contact your accountant in advance to arrange for advice and assistance.

FORM 1-FR-FCM — DETAILED FINANCIAL REPORT: This form must be filed by all persons or organizations applying for registration as an FCM.

FORM 1-FR-IB (PART A) — DETAILED FINANCIAL REPORT: This part must be filed by all persons or organizations applying for registration as an Independent IB.

FORM 1-FR-IB (PART B) — GUARANTEE AGREEMENT: Persons or organizations that are IBs or that are applying for registration as IBs may file Part B in lieu of Part A. The Guarantee Agreement must be signed by an officer, general partner or sole proprietor of both the IB and the FCM that will carry accounts of the IBs customers. The Guarantee Agreement, in effect, obligates the FCM to assume financial and regulatory responsibility for the performance of the IB in connection with futures and options customers. The IB has no further financial reporting obligations as long as the Guarantee Agreement remains in effect.

Statement of Source of Current Assets: All applicants for registration as an FCM or Independent IB must submit a letter written on the applicant's business stationery describing the source of its current assets and representing that its capital has been contributed for the purpose of operating the business for which they are applying for registration and will continue to be used for that purpose. The letter must be signed by a principal of the firm.

APs, FB/FTs and Principals
Applicants for registration as an AP or designation as a Branch Office Manager or Principal must file a verification of the information contained in the application and submit a fingerprint card. It may also be necessary for NFA to receive evidence from FINRA that the applicant has passed a proficiency examination. Floor broker and floor trader applicants must file a fingerprint card. AP, FB and FT applicants, Branch Office Managers and principals who are already pending, temporarily licensed, registered or approved are not required to file the fingerprint card.

Fingerprint cards are sent to the Federal Bureau of Investigation (FBI) to determine if the applicant has a criminal record. To match a fingerprint card with an individual FBI file the FBI must be able to analyze the print pattern of all 10 fingers. If the pattern of any one finger is not legible and the match cannot be made, the FBI will return the fingerprint card to NFA and NFA will have to delay processing until a new fingerprint card is obtained. For this reason it is very important that you have your fingerprints taken by a person properly trained in rolling fingerprints.

NFA has issued a Registration Advisory that provides guidance concerning fingerprinting to assist those who submit applications via the Online Registration System.

Applicants are encouraged to submit more than one set of fingerprints with their application to avoid delays in obtaining additional sets if necessary for processing.

Documents related to Disciplinary Information
The Disciplinary Information questions require applicants to disclose any facts about their backgrounds that might indicate disqualification. Applicants must supply explanations and certified copies of the actual official papers relating to"yes" answers. Two things must be kept in mind. First, willfully giving a false answer to one of the Disciplinary Information questions is a crime and a sufficient reason in itself for denying registration. Second, it is always in an applicant's best interest to support any "yes" answers with complete explanations and official documents. In the case of a "yes" answer, registration cannot be granted unless the nature of the potential disqualification is fully understood and supported by the appropriate documents.

Application Fees
The applicable application fee must be paid. AP, FB and FT applicants and principals who are already pending, temporarily licensed, registered or approved are not required to pay the fee.

How long after my application is filed do I have to submit the rest of the required information?
Once the firm files an electronic Form 7-R for itself or an electronic Form 8-R for an AP or principal, the applicant will have 90 days to clear up any deficiencies in the application. If the deficiencies are not cleared up within 90 days, the application will be withdrawn and a new application will need to be filed. Applications for registration as an FB and FT will be withdrawn if any deficiencies are not cleared up within 180 days. AP Temporary Licenses will be withdrawn if the verification, fingerprint cards, evidence of test passage and the fee are not received by NFA within 20 days.

Do sole proprietors need to complete both the firm and individual applications?
Yes, a sole proprietor, i.e., an individual who intends to act as an FCM, IB, CPO or CTA, is considered to be a firm, not an individual. Therefore, a sole proprietor applicant must file the electronic Form 7-R for the sole proprietorship and the electronic Form 8-R to list the sole proprietor as a principal or to become an AP of the firm. The sole proprietor must also file the electronic verification of the Form 8-R.

Which individuals are considered principals?
An individual's status as a principal is determined by the individual's 1) ability to control a registrant's business activities; 2) formal title or position with the registrant; and 3) financial or ownership interest in the registrant. Individuals who, through their conduct or activity, directly or indirectly control a registrant are principals of the registrant, irrespective of their formal title or financial interest in the registrant. Similarly, individuals who hold specific positions or titles with registrants (see definition of principal) are also principals of the registrant, irrespective of their ability to control the registrant's business.

Individuals who, directly or indirectly, have a 10% or more financial or ownership interest in the registrant are principals of the registrant, irrespective of their titles, position or ability to control the registrant's business activity. The following examples illustrate how direct and indirect ownership impact an individual's status as a principal based on ownership.

• Example 1: Individual owns 100% of any class of stock of Registrant. Individual is a principal of registrant.
  
• Example 2: Individual owns 100% of Holding Company's stock and Holding Company owns 50% of Registrant's stock. Individual is a principal because Individual indirectly owns 50% of Registrant's stock (100% x 50%=50%).
  
• Example 3: Individual owns 100% of Holding Company A's stock. Holding Company A owns 50% of Holding Company B's stock. Holding Company B owns 50% of Registrant's stock. Individual is a principal of Registrant because Individual indirectly owns 25% of Registrant's stock (100% x 50% x 50%=25%).
  
• Example 4: Individual owns 50% of Holding Company's stock. Holding Company owns 10% of Registrant's stock. Individual is not a principal of Registrant (based on ownership interest) because Individual indirectly owns 5% of Registrant's stock (50% x 10%=5%).

Which companies are considered principals?
A company is a principal either because it is a general partner of a partnership or based on its ownership or financial stake in a registrant. Unlike individuals, a company's status as a principal based on ownership or capital contribution is determined solely by its direct relationship with the registrant. Holding companies that directly own 10% or more of a class of a registrant's stock or directly contribute 10% of a registrant's capital are principals of the registrant. In contrast, a holding company that indirectly owns a registrant's stock or contributes capital is not a principal. The following example illustrates how direct and indirect ownership impact a company's status as a principal of a registrant.

• Example 1: Holding Company A owns 100% of Holding Company B's stock. Holding Company B owns 50% of Registrant's stock. Holding Company B is a principal of Registrant because Holding Company B directly owns 50% of Registrant's stock. Holding Company A is not a principal of Registrant because although it indirectly owns 50% of Registrant's stock (100% x 50%=50%), it does not directly own 10% or more of Registrant's stock. The same would be true regarding capital contributions.