The NFA Has Landed

Since 2008, derivatives have earned the reputation of being the wild west of finance- unregulated and unreliable. We shake our heads when people try to stretch the metaphor that is so appropriate in the world of off-exchange, non-regulated swaps to the world of regulated, exchange-traded futures. As anyone in the futures industry will tell you, they are heavily regulated, indeed. To take part in the world of futures trading from a brokerage standpoint, registration is mandatory with the industry’s regulatory body, the National Futures Association (NFA). From time to time, we will comment about what it’s like to be NFA-regulated (particularly compared to lax standards of other industries).

The next couple of weeks will be a testament to just this around the Attain offices, as the NFA is conducting their regular audit, which all members are subject to every three years or so. They’ll be poring over financial records, documentation, communications, promotional material and supporting evidence for days on end. To be fair, the promotional material review alone is laborious with us. The NFA requires that its members keep their promotional material on file for a period no less than 5 years after first use. Less than two years of our Twitter and Facebook compliance records alone spanned over 600 pages, and that’s not even close to our most active social media platform. We really won’t want to be them three years down the road…

In other words, this is far from the financial wild west. In fact, it’s probably more akin to a circa 1942 all-girls Catholic boarding school in Nebraska some days. To be clear, NFA membership and subjection to audits doesn’t guarantee that the businesses in question belong to the good guy club. There have been regulatory failures – MF Global (a former NFA member) being the most recent of many- but if you’re not an institutional titan spending millions on lobbying and obfuscating, odds are that the regulatory powers that be aren’t going to be overlooking much or doing you any favors. Being small isn’t a guarantee either, but at least you know they aren’t spending all that money on pushing for legislation that gives them license to screw you over. In our opinion, it’s just another benefit of working with smaller firms. Do we sound like a broken record yet?

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Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

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