7.1.1. Registration of FCMs, IBs, CPOs, and CTAs
An applicant for CFTC registration and NFA membership begins the registration process by filling out an enrollment form on the NFA’s Online Registration System and designating a contact person. Once the form has been submitted, the applicant is given a temporary password with which to complete the online filing process.
|
Definitions |
|
|
Futures commission merchant (FCM) |
A brokerage firm that solicits orders from customers and executes trades. It may also provide credit to its customers to enable trading. |
|
Introducing broker (IB) |
A brokerage firm that solicits orders from customers but is not permitted to execute them. They must send their orders to an FCM to execute and clear the trades. |
|
Commodity trading advisor (CTA) |
An individual or firm that analyzes futures markets, issues reports, offers advice, and makes recommendations. |
|
Commodity pool operator (CPO) |
An individual or firm that solicits funds from the public and pools them into a single account to invest in futures contracts. |
FCMs, introducing brokers, commodity pool operators, and commodity trading advisors must all fill out an application on Form 7-R. Form 7-R requires the following general information:
- • Type of business organization (corporation, partnership)
- • Types of proposed business activities (FCM, IB, swap dealer)
- • Location of business records
- • Location and contact information of branch offices
- • Non-U.S. regulatory relationships over the last five years
- • Criminal disciplinary disclosures (even if no finding of guilt)
- • Regulatory disciplinary disclosures (unless by CFTC or NFA)
- • Financial discipl