What role does the National Futures Association (NFA) play for the U.S. futures industry?

The National Futures Association (NFA) serves as a self-regulatory organization for the U.S. futures industry, overseeing the conduct of futures trading and ensuring compliance with applicable regulations. Its primary role involves establishing and enforcing rules and standards for firms and individuals involved in the futures markets, thus promoting integrity and protecting market participants. The NFA is dedicated to protecting investors and maintaining the integrity of the derivatives markets, making it a crucial oversight body in this industry.

While conducting financial audits, managing trading systems, and providing legal counsel may be necessary functions within the industry, those responsibilities fall outside the specific remit of the NFA. The organization focuses on regulatory aspects rather than financial auditing or legal advisory services, solidifying its position as a key regulatory authority for the futures market.