NFA Proposes Amendments to Governance Structure in Articles of Incorporation
The National Futures Association ("NFA") filed with the CFTC its proposed amendments to the NFA Articles of Incorporation regarding its governance structure. The number of elected representatives of Futures Commission Merchant Members and registered Leverage Transaction Merchant Members in the governance structure is proposed to be amended from ten to nine. Additionally, one NFA representative will be eligible to represent both Swap Dealers ("SDs") and registered Retail Foreign Exchange Dealers ("RFEDs"). Furthermore, starting in 2016, the proposed rule will state that individuals who are public representatives shall constitute 35% of the Board's voting representatives. The proposed amendments also alter the composition of the executive committee, and would require that the Chairman of the Board be a nonvoting member except in the case of tie votes.
Pursuant to CEA Section 17(j) ("Registered Futures Associations"), the NFA is invoking the "ten-day" provision, which will make the proposed amendments effective 10 days after the CFTC receives the NFA's submission.