Dear Trading Professional:
As industry participants, observers and commentators, we would like to invite you to join a public dialogue on topics evolving in today's volatile marketplace. We are able to provide a place for this forum where ideas and opinions can be consolidated, which will initially be posted for all to see on the SFO magazine website.
Trading Community Forum - Join in the Discussion
Please join together with futures, Forex and options industry participants to share your perspectives. We seek your thoughts on structuring and formats (blogs?) for ongoing posts for long-term benefit. Your response to this first informational blast can be either an e-mail to me, or you can call me, or send a written note to industrynews@sfomag.com to be posted publicly. Or, you can blast out your own opinion piece, inquiry or call to action.
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TOPIC: IMPORTANT NFA CHANGES
From the NFA website, we note two proposed amendments to NFA Articles of Incorporation - a vote is pending with a deadline of April 20. If you are a member we strongly urge you to exercise your vote! It is not often that changes are instituted in the Articles of Incorporation!
The amendments are:
1) revise the current structure of representation for FCMs on the NFA Board and;
2) revise the NFA Executive Committee's quorum requirement.
Purely for background information, attached is a fact sheet that might give you more insight on the diversity of the National Futures Association (NFA) membership. With pride we support NFA, which welcomes active participation and which has truly represented members and customers with great integrity. We look forward to more communication activity from participants during this time of considerable public attention on regulation and measures to safeguard the public trust.
Item 1: FCM Representation on the NFA Board
A more flexible approach to board composition is recommended for the upcoming vote (with a deadline of April 20.) Now, of the 8 FCM representatives on the Board, 4 must currently be from top-10- ranked FCMs based on seg funds. The new proposal would be that only 2 seats would go to top-10-ranked firms, 2 seats for non-top-10 firms, and 4 at-large seats for anyone in the membership body. We are all for this change.
Separately, we are curious as to whether any IBs or other NFA members have ever considered running for a board position. We'd like to hear from you on that.
In the words of the NFA, industry consolidation and the rapidly changing financial services landscape in general are solid reasons that a more flexible approach to Board representation is a great idea.
Item 2. Executive Committee Quorum Rules
In essence, this will change the quorum to a simpler formula of a majority of the members of the Executive Committee so that it matches quorum rules for NFA's other Committees, which include Membership, Appeals, and Business Conduct. Again, we concur.
NFA member votes must be faxed in by a deadline of April 20, 2009. We hope that all members exercise this privilege.
Remember, this is an open invitation for all industry participants to join in the discussion. Your opinion counts. Please contact me via email, give me a call or submit a response to industrynews@sfomag.com.
Sincerely,
Patricia Campbell
SFO Editor, Special Sections
patcampbell@sfomag.com
April 3, 2009
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