Alpari (US)

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Regulatory Compliance

Alpari (US), LLC is registered with the Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant and is a member of the National Futures Association (NFA) - Member ID: 0379678.

About the CFTC and NFA

The Commodities Exchange Act (the Act), enacted in 1936, set forth a regulatory framework governing the futures trading of commodities, like energy and agricultural products, and government securities on organized exchanges, and futures and spot trading of foreign currencies. In 1974, substantial amendments were made to the Act. This resulted in the transfer of regulatory authority to a newly created, five-member commission – the Commodity Futures Trading Commission (CFTC). The Act also authorized the creation of "registered futures associations," giving the industry the opportunity to create a nationwide self-regulatory organization. This resulted in the establishment of the National Futures Association (NFA) in 1982.

The NFA is the industry wide, self-regulatory organization for the U.S. futures industry. The NFA has developed rules, programs and services that safeguard the integrity of the market and protect traders and investors, while helping FCMs meet comprehensive regulatory requirements.

The CFTC provides government oversight for the entire industry. Each U.S. futures exchange operates as a self-regulatory organization, governing its floor brokers, traders and member firms. The NFA regulates every firm or individual who conducts futures trading business with public customers. Although the various regulatory organizations in the futures industry have their own specific areas of authority, together they form a regulatory partnership that oversees all industry participants.

Key Features of the NFA Regulations

An FCM, like Alpari (US), is required to adhere to stringent regulatory requirements which govern the FCM's corporate practices and relationships with business affiliates, clients and members of the public.

Under the NFA's rules, an FCM must:

• Undergo an annual, on-site audit
• Establish a comprehensive Anti-Money Laundering Program
• Develop a business continuity and disaster recovery plan to prevent the disruption of the FCM's operations in the event of a disaster
  
• Maintain the current net capital requirement ($20 million as of May 2009)
• Monitor and submit all promotional material for approval

The NFA provides investors with:

• Oversight of the industry
• Direct access to filing complaints
• Dispute resolution programs to assist both investors and FCMs in resolving all disputes in a sophisticated manner.
  
• Broker/Firm Information through BASIC (Background Affiliation Status Information Center), a database which informs investors about a company's registration status and disciplinary history with the NFA
  
• Educational Research through the Investor Learning Center
  

 

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