1. Who is required to register and why?
   
2. What is a fitness inquiry?
   
3. How long does the registration process take?
   
4. What is a prepaid account?
   

Click on the links below to obtain specific information to help you determine whether, by law, you are required to seek CFTC registration and if so in what category. If you have any questions as to whether you qualify for a particular exemption from registration, you should seek guidance by referring to the appropriate section of the Act or by consulting NFA registration personnel. Requests for exemption or for "no action" opinions with respect to the applicable registration requirements should be submitted to the CFTC and a copy of any such request should be provided to NFA.

Futures Commission Merchant, Introducing Broker, Commodity Pool Operator, Commodity Trading Advisor, Associated Person, Principal, Floor Broker or Floor Trader, NFA Membership

Foreign entities that transact business directly with U.S. customers solely in futures contracts and commodity options traded on foreign exchanges are exempt from registration if:

(a) it is an FCM subject to a comparable regulatory structure by a foreign regulator which has been granted an exemption by the CFTC or an IB, CPO, or CTA without a U.S. office; and

(b) it has filed a request for exemptive relief and an agreement with NFA appointing an authorized U.S. agent for service of process for communications in connection with activities that would otherwise require registration. IBs, CPOs and CTAs request exemption relief by filing a Form 7-R.

What is a fitness inquiry?
The Act specifies certain disqualifications from registration, including many that are based on prior proceedings in which the applicant was found to have violated the law or in which the applicant was formally enjoined from engaging in certain activities. NFA performs an extensive background check to determine whether a disqualification exists. Three essential elements of the background check are the Disciplinary Information questions on the application forms that require the applicant to disclose and supply detailed information concerning possible disqualifications, a check against FINRA's CRD database and the fingerprint cards provided by individuals. For foreign applicants, NFA may perform additional background checks such as checks with foreign regulatory and self-regulatory bodies and Interpol.

How long does the registration process take?
Initial applications for registration as a Futures Commission Merchant, Introducing Broker, Commodity Pool Operator, Commodity Trading Advisor, Associated Person, Principal, Floor Broker or Floor Trader and for NFA Membership can be filed once entry of the required data is complete. APs who are eligible will receive a temporary license as soon as the application is filed. Guaranteed IBs that are eligible will receive a temporary license as soon as all required filings have been made for it and its principals. However, it may take six to ten weeks to complete all background checks before NFA can grant a full registration to initial applicants.

If an individual is already registered or listed as a principal, it is possible to obtain registration in a new category as soon as the application is filed. For example, an individual who is listed as a principal, has no fitness information that needs to be reviewed and has satisfied the proficiency requirements can be registered as an AP when the application is filed. Similarly, a registered firm may be able to obtain registration the next day. For example, a registered IB with no disciplinary information to be reviewed that files an application to be registered as a CTA will be registered as a CTA overnight if there is sufficient funds in its prepaid account to cover the application fee.

What is a prepaid account?
Any Commodity Pool Operator, Commodity Trading Advisor, Futures Commission Merchant or Introducing Broker can establish a prepaid account with National Futures Association. No minimum balance is required. The prepaid account can be used for payment of:

• Principal, AP registration and special registration filing fees
• Additional firm registration filing fees
• Initial NFA membership dues
• Fees for late 8-T filings
• Annual registration records maintenance fees
• Annual NFA Membership dues^*
• Fingerprinting by NFA staff^*
• Purchase of directories^*

Account statements can be viewed online at any time, reflecting the account balance and all activity by month and year. For the time being, hardcopy statements are also mailed monthly.

To open a prepaid account, send a check and cover letter with instructions to set up a prepaid account to NFA at the address below. Please include the name and NFA ID number of the firm for which the prepaid account is being established.

Treasurer's Office
National Futures Association
Post Office Box 98383
Chicago, Illinois 60693-0001

To add money to a prepaid account, send a check to the above address. Include a cover letter with instructions to add the amount to the prepaid account. As always, please include the firm name and NFA ID number.

To close a prepaid account, send a letter requesting a refund of the account balance to the address below. NFA will mail a check for the balance in the prepaid account within 10 business days after NFA receives the request.

Treasurer's Office
National Futures Association
300 South Riverside Plaza
Suite 1800
Chicago, Illinois 60606-6615