NFA Swells Futures, Options Fees to $0.02 for Each Trade Side
- The latest hike marks only the fourth time in NFA's 31-year history that it has increased the fee.
The U.S. National Futures Association (NFA) said on Wednesday it would hike its fees as the coffers of the agency that regulates the futures and Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term industry need money to fund its operations without compromising the quality of services.
The Chicago-based regulator said that effective January 1, 2018 it would double the fee it raises on futures contracts, and options on futures contracts, from currently $0.01 to $0.02 for each side of the trade.
The latest hike marks only the fourth time in NFA's 31-year history that it has increased the fee. Conversely, the regulator has decreased the fee nine times during the past 15 years. However, in order for NFA to continue to fund its operations and maintain adequate reserves, an increase in the assessment fee has become necessary, the agency said.
The National Futures Association self-regulates futures trading, and is itself supervised by the U.S. Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term). Both watchdogs were given massive new responsibilities under the Dodd-Frank law, and have recently launched innovative regulatory programs, which may have resulted in a significant gap between revenue and expenses.
The U.S. National Futures Association (NFA) said on Wednesday it would hike its fees as the coffers of the agency that regulates the futures and Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term industry need money to fund its operations without compromising the quality of services.
The Chicago-based regulator said that effective January 1, 2018 it would double the fee it raises on futures contracts, and options on futures contracts, from currently $0.01 to $0.02 for each side of the trade.
The latest hike marks only the fourth time in NFA's 31-year history that it has increased the fee. Conversely, the regulator has decreased the fee nine times during the past 15 years. However, in order for NFA to continue to fund its operations and maintain adequate reserves, an increase in the assessment fee has become necessary, the agency said.
The National Futures Association self-regulates futures trading, and is itself supervised by the U.S. Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term). Both watchdogs were given massive new responsibilities under the Dodd-Frank law, and have recently launched innovative regulatory programs, which may have resulted in a significant gap between revenue and expenses.