The National Futures Association has published a list of proposed amendments to the structure of the regulator’s board. Retail Foreign Exchange Dealers (RFEDs) who have been paired with Swap Dealers (SDs) in their quota representation on the board will lose two seats.
Current arrangements mandate seven board members to be designated to SDs and RFEDs. Starting from February 2016, the NFA is proposing a new quota principle which will cut the seats for the above mentioned financial institutions by two to a total of five.
The changes are part of a reduction to the total count of board members of the NFA. Futures Commission Merchants (FCMs), Leverage Transaction Merchants (LTMs) and Introducing Broker (IBs) Representatives have been cut to a total of seven from previously nine.
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The quota for IBs will remain unchanged when compared to the previous structure, with both workers who are required to maintain minimum adjusted net capital and those who aren’t holding one seat.
The representatives of Commodity Pool Operators have also been cut from five to four, while the public representatives on the board of the NFA have been reduced from eleven to a total of ten.
For the complete changes to the structure of the board, which are most likely due from February 2016, the full document published by the NFA can be read below.