2017-11-14T10:03:04-06:00 2017-06-30 GRANT THORNTON LLP 171 N CLARK ST SUITE 200 CHICAGO IL 60601 990 2016-07-01 362960981 National Futures Association % DAVID HAWRYSZ NATI 3127811300 300 S RIVERSIDE PLAZA Suite 1800 CHICAGO IL 606066615 DAVID HAWRYSZ Sr VP, CFO,Treasurer 3127811300 2017-11-14 true Bridget T Roche P00666837 3128560200 38.84.128.189 36941220173185000005 2017-11-14 P 7841C58A7517FBDCB494F8FEBC7FE230B8BC229C 8570B2D8046878F456576E706BB8FB99030C32C0 2016 2017-02-10 21:41:12Z NFA David Hawrysz 300 S RIVERSIDE PLAZA STE CHICAGO IL 60606 81456351 false X www.nfa.futures.org X 1976 DE NFA IS A SELF-REGULATORY MEMBERSHIP ORGANIZATION FORMED TO MONITOR AND MAINTAIN THE INTEGRITY OF THE DERIVATIVES TRADING INDUSTRY. 29 29 576 0 0 0 0 0 78816284 80509339 691640 947012 0 0 79507924 81456351 0 0 0 0 60958250 68176255 0 0 0 21704610 23659656 82662860 91835911 -3154936 -10379560 135048820 125595122 22990994 22400491 112057826 103194631 X AS A CONGRESSIONALLY AUTHORIZED SELF-REGULATORY ORGANIZATION, NATIONAL FUTURES ASSOCIATION (NFA) IS THE SELF-REGULATORY ORGANIZATION FOR THE U.S. DERIVATIVES INDUSTRY, INCLUDING EXCHANGE TRADED FUTURES, RETAIL OFF-EXCHANGE FOREIGN CURRENCY (FOREX) AND OTC DERIVATIVES (SWAPS). NFA HAS DEVELOPED AND ENFORCES RULES, PROVIDES PROGRAMS AND OFFERS SERVICES THAT SAFEGUARD MARKET INTEGRITY, PROTECT INVESTORS AND HELP OUR MEMBERS MEET THEIR REGULATORY RESPONSIBILITIES. false false 0 0 NFA is the industrywide Self-Regulatory Organization for the U.S. derivatives industry. Designated by the CFTC as a registered futures association, NFA strives to safeguard the integrity of the derivatives markets, protect investors and ensure that NFA Members meet their regulatory responsibilities. Regulation Enforcement of NFA rules is critical to the effectiveness of the self-regulatory process. In FY 2017: * NFA's Business Conduct Committee issued 14 Complaints against 24 respondents. A number of these cases involved Members and Associates who failed to supervise, cooperate with NFA, or observe high standards of commercial honor and just and equitable principles of trade. *NFA's disciplinary panels issued 21 Decisions, and ordered 15 expulsions and 3 suspensions. *NFA collected nearly $700,000 in fines. NFA reviewed and approved slightly over 30 Swap Dealer ("SD") initial margin models. Following these margin model approvals, NFA developed and implemented an ongoing monitoring program to assess each SD's use of its initial margin model. In March 2017, NFA adopted NFA financial requirements Section 17 specifying NFA's general authority to collect financial, operational, risk management and other information from SDs that NFA deems necessary to effectively carry out its oversight responsibilities. NFA is enhancing a risk profile system to identify members that may pose heightened regulatory risk and to allocate resources accordingly. NFA amended Compliance Rule 2-46 and adopted a related Interpretive Notice, which became effective in June 2017, to require CPO and CTA Members to report two financial ratios regarding their financial condition on the quarterly Forms PQR and PR. This new financial data will improve NFA's ability to quickly identify firms that may pose heightened regulatory risk and allocate resources accordingly. Registration NFA screens all firms and individuals wishing to register with the CFTC and become NFA Members. In FY 2017, NFA's Registration Department processed nearly 520 firm registrations and approximately 9,200 individual registrations. As of June 30, 2017, NFA had approximately 3,800 Members and nearly 52,000 Associate Members. Information Center NFA's Information Center - a service NFA offers to Members and the investing public - received more than 24,000 calls and responded to nearly 4,000 emails. 0 false false false true false false false true false true false false false true true true false false false true false false false false false false false false true false false false false false false false false false false false false false false true 97 0 true 576 true false false false false false false X 29 29 false false false false true true true true true false false true true true true true true true true false CA X DAVID HAWRYSZ 3127811300 300 SOUTH RIVERSIDE PLAZA SUITE 18 Chicago IL 60606 X Paul Georgy Board Member 1.0 0.0 X 8000 0 0 Douglas Bry Board Member 1.0 0.0 X 16000 0 0 Ernest Jaffarian Board Member 1.0 0.0 X 16000 0 0 Gerald Corcoran Board Member 1.0 0.0 X 16000 0 0 Michael Dawley Board Member 1.0 0.0 X 16000 0 0 Maureen Downs Board Member 1.0 0.0 X 14000 0 0 Ronald Filler Board Member 1.0 0.0 X 42000 0 0 Douglas Harris Board Member 1.0 0.0 X 43500 0 0 Jim Marshall Board Member 1.0 0.0 X 21000 0 0 Michael Moskow Board Member 1.0 0.0 X 41500 0 0 Charles Nastro Board Member 1.0 0.0 X 24500 0 0 Ronald Oppenheimer Board Member 1.0 0.0 X 42000 0 0 Todd Petzel Board Member 1.0 0.0 X 43500 0 0 Mark Bagan Board Member 1.0 0.0 X 8000 0 0 David Goone Board Member 1.0 0.0 X 16000 0 0 John Sandner Board Member 1.0 0.0 X 16000 0 0 Antonio Miras Board Member 1.0 0.0 X 8000 0 0 Michael Burke Board Member 1.0 0.0 X 8000 0 0 Brendan Kalb Board Member 1.0 0.0 X 8000 0 0 Mary McDonnell Board Member 1.0 0.0 X 15000 0 0 Robert Burke Board Member - THRU 5/2017 1.0 0.0 X 0 0 0 Philip Olesen Board Member 1.0 0.0 X 0 0 0 Charlotte McLaughlin Board Member 1.0 0.0 X 0 0 0 Don Thompson Board Member 1.0 0.0 X 14000 0 0 Andrea Corcoran Board Member 1.0 0.0 X 20000 0 0 Michael Schaefer Board Member 1.0 0.0 X 24500 0 0 Sheryl Wallace Board Member 1.0 0.0 X 0 0 0 Adam Cooper Board Member - THRU 2/2017 1.0 0.0 X 8000 0 0 Thomas Kadlec Board Member - As of 2/2017 1.0 0.0 X 0 0 0 William McCoy Board Member - AS OF 5/2017 1.0 0.0 X 0 0 0 Martin Lueck Board Member - As of 2/2017 1.0 0.0 X 0 0 0 Daniel Roth President & CEO - Thru 3/2017 40.0 0.0 X 801631 0 56112 Daniel Driscoll Vice President and COO 40.0 0.0 X 585975 0 58698 Thomas Sexton President & CEO - As of 3/2017 40.0 0.0 X 561083 0 58765 Regina Thoele Senior VP 40.0 0.0 X 522499 0 58166 Karen Wuertz Senior VP 40.0 0.0 X 374496 0 57736 David Hawrysz Sr. VP, CFO and Treasurer 40.0 0.0 X 413309 0 58954 Edward Dasso Vice President 40.0 0.0 X 473260 0 60321 Jamila Piracci Vice President 40.0 0.0 X 479108 0 56113 Yvette Christman Vice President 40.0 0.0 X 185915 0 30462 Timothy McHenry Vice President 40.0 0.0 X 330969 0 58067 Carol Wooding VP, GC, and Secretary 40.0 0.0 X 296963 0 56462 Michael Crowley Associate General Counsel 40.0 0.0 X 283363 0 52065 Amy McCormick Managing Director Compliance 40.0 0.0 X 294179 0 16306 Shuna Awong Director, OTC Derivatives 40.0 0.0 X 255649 0 41148 Thomas Gisonda Managing Dir, OTC Derivatives 40.0 0.0 X 272875 0 48712 Dale Spoljaric Managing Director Compliance 40.0 0.0 X 263639 0 49381 6884413 0 817468 182 false true false Protiviti Inc 101 N Upper Wacker Drive Suite 14 CHICAGO IL 60606 Consulting 1845254 Redlegg 902 S Randall Drive Suite C 319 ST CHARLES IL 60174 Software Support 656279 Konsultek 2230 Point Boulevard Suite 800 ELGIN IL 60123 IT Support 362405 Insight 6820 S Harl Avenue TEMPE AZ 85283 IT Support 344853 Intelisecure 5613 DTC Parkway Suite 1250 GREENWOOD VILLAGE CO 80111 IT Support 290679 24 0 MEMBERSHIP DUES 900099 39964657 39964657 ASSESSMENT FEES & MARKET SERVICE REV 900099 37667057 37667057 REGISTRATION & TESTING FEES 900099 1252519 1252519 REGULATORY FINES 900099 702520 702520 ARBITRATION REVENUE 900099 87269 87269 835317 835317 80509339 947012 947012 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 81456351 80509339 947012 0 0 0 0 6075619 0 47525088 4636835 6204594 3734119 0 483505 81918 0 0 0 3024953 25280 1060686 2727564 0 3689969 3500589 0 323868 0 0 7466378 0 EDUCATION AND RECRUITMENT 1041038 DUES AND SUBSCRIPTION 233908 91835911 18053061 22402169 19992640 14990625 0 0 1653622 1293910 0 0 0 0 0 0 0 0 796714 1134795 36217394 19927769 17008124 16289625 74879330 66898534 0 0 0 0 0 0 2665329 2585464 135048820 125595122 3947570 3836358 0 0 10262822 9183112 0 0 0 0 0 0 0 0 0 0 8780602 9381021 22990994 22400491 X 112057826 103194631 0 0 0 0 112057826 103194631 135048820 125595122 -10379560 1516365 X false true X true false false false false 77631714 20447 20447 20447 true 2834123 11484617 1526770 12791970 false 11703179 5941060 5762119 7728452 4770439 2958013 16785762 9216269 7569493 16289625 0 POST RETIREE BENEFITS 8883378 UNCLAIMED DISBURSEMENT 80505 ALL OTHER LIABILITIES 417138 9381021 X 82972716 1516365 1516365 81456351 81456351 91835911 91835911 91835911 AGENT, TRUSTEE, CUSTODIAN, ETC. ARRANGEMENT SCHEDULE D, PART IV, LINE 1B THE COMMODITY FUTURES TRADING COMMISSION (CFTC) PERIODICALLY ASKS FEDERAL COURTS TO APPOINT NFA TO SERVE AS COURT-APPOINTED MONITOR IN RESTITUTION JUDGMENTS AWARDED IN CFTC CASES BROUGHT BEFORE THE COURTS. AS MONITOR, NFA ENSURES HARMED INVESTORS IDENTIFIED BY THE COURT ORDER RECEIVE THEIR PRO-RATA SHARE OF RESTITUTION. THE RESTITUTION FUNDS ARE PLACED IN QUALIFIED SETTLEMENT FUNDS (QSF) WHICH ARE SEPARATE LEGAL ENTITIES ESTABLISHED AND TITLED PURSUANT TO A FEDERAL COURT ORDER. QSF ARE ORDINARILY SUBJECT TO THE CONTINUING JURISDICTION OF THE FEDERAL COURT BODY. NFA HAS CHECK WRITING AUTHORITY FOR THE QSFS. LIABILITY FOR UNCERTAIN TAX POSITION (ASC 740) SCHEDULE D, PART X, LINE 2 The Association follows guidance that clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return, including issues relating to financial statement recognition and measurement. This guidance provides that the tax effects from an uncertain tax position can only be recognized in the financial statements if the position is "more likely than not" to be sustained if the position were to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. The Association is exempt from federal income tax under IRC section 501(c)(6), though it is subject to tax on income unrelated to its exempt purpose, unless that income is otherwise excluded by the Code. The Association has processes presently in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated income; to determine its filing and tax obligations in jurisdictions for which it has nexus; and to identify and evaluate other matters that may be considered tax positions. The Association has determined that there are no material uncertain tax positions that require recognition or disclosure in the financial statements. false North America 0 20 Program Services AUDIT OF MEMBER FIRMS 75206 Europe (Including Iceland and Greenland) 0 33 Program Services AUDIT OF MEMBER FIRMS 381765 0 53 0 53 456971 456971 false false false false false false METHOD USED TO ACCOUNT FOR EXPENDITURES SCHEDULE F, PART I, LINE 3, COLUMN (F) THE TOTAL PROGRAM SERVICE EXPENDITURES IN NORTH AMERICA AND EUROPE HAVE BEEN REPORTED USING THE ACCRUAL METHOD OF ACCOUNTING, THE SAME METHOD USED FOR NFA'S AUDITED FINANCIAL STATEMENTS. X true true X X X false false false Daniel Roth President & CEO - Thru 3/2017 726151 0 75000 0 480 0 37100 0 19012 0 857743 0 0 0 Daniel Driscoll Vice President and COO 535459 0 50000 0 516 0 37100 0 21598 0 644673 0 0 0 Thomas Sexton President & CEO - As of 3/2017 498892 0 60000 0 2191 0 37100 0 21665 0 619848 0 0 0 Regina Thoele Senior VP 470213 0 50000 0 2286 0 37100 0 21066 0 580665 0 0 0 Karen Wuertz Senior VP 337174 0 35000 0 2322 0 37100 0 20636 0 432232 0 0 0 David Hawrysz Sr. VP, CFO and Treasurer 371842 0 40000 0 1467 0 37100 0 21854 0 472263 0 0 0 Edward Dasso Vice President 432324 0 40000 0 936 0 37100 0 23221 0 533581 0 0 0 Jamila Piracci Vice President 418208 0 60000 0 900 0 37100 0 19013 0 535221 0 0 0 Yvette Christman Vice President 165659 0 20000 0 256 0 21160 0 9302 0 216377 0 0 0 Timothy McHenry Vice President 288975 0 40000 0 1994 0 37100 0 20967 0 389036 0 0 0 Carol Wooding VP, GC, and Secretary 262939 0 30500 0 3524 0 24217 0 32245 0 353425 0 0 0 Michael Crowley Associate General Counsel 252617 0 25000 0 5746 0 23144 0 28921 0 335428 0 0 0 Amy McCormick Managing Director Compliance 263359 0 30000 0 820 0 10088 0 6218 0 310485 0 0 0 Shuna Awong Director, OTC Derivatives 243457 0 10000 0 2192 0 19288 0 21860 0 296797 0 0 0 Thomas Gisonda Managing Dir, OTC Derivatives 255669 0 15000 0 2206 0 23575 0 25137 0 321587 0 0 0 Dale Spoljaric Managing Director Compliance 247908 0 15000 0 731 0 27830 0 21551 0 313020 0 0 0 HEALTH OR SOCIAL CLUB DUES OR INITIATION FEES SCHEDULE J, PART I, LINE 1A HEALTH CLUB DUES PROVIDED TO DANIEL ROTH, REGINA THOELE, KAREN WUERTZ, TIM MCHENRY, DAVID HAWRYSZ, EDWARD DASSO, JAMILA PIRACCI AND THOMAS SEXTON, STAFF AND OFFICERS, IN THE AMOUNT OF $12,290 WAS REPORTED AS COMPENSATION ON FORM W-2. NFA CURRENTLY DOES NOT OFFER FIRST CLASS TRAVEL. ON OVERSEAS BUSINESS TRIPS, NFA OFFICERS MAY ELECT TO FLY BUSINESS CLASS. MEMBERS OR STOCKHOLDERS FORM 990, PART VI, LINE 6 MEMBERS ARE DIVIDED INTO CATEGORIES BASED UPON THE CATEGORIES THEY ARE REGISTERED WITH THE COMMODITY FUTURES TRADING COMMISSION ("CFTC"). THE MEMBERSHIP CATEGORIES INCLUDE: CONTRACT MARKETS, FUTURE COMMISSION MERCHANTS AND LEVERAGED TRANSACTION MERCHANTS, INTRODUCING BROKERS, RETAIL FOREIGN EXCHANGE DEALERS, SWAP DEALERS, MAJOR SWAP PARTICIPANTS, COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS. MEMBERS ELECT REPRESENTATIVES FROM THEIR RESPECTIVE CATEGORIES TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS ELECTS PUBLIC DIRECTORS (NON-MEMBERS) TO THE BOARD OF DIRECTORS. OTHER THAN A CHANGE IN THE ARTICLES OF INCORPORATION, MEMBERS GENERALLY DO NOT APPROVE SIGNIFICANT DECISIONS OF THE GOVERNING BODY. UPON DISSOLUTION, THE NET ASSETS OF NFA, AFTER PAYMENT OF LIABILITIES, SHALL BE DISTRIBUTED TO THE MEMBERS IN PROPORTION TO THE DUES AND ASSESSMENTS PREVIOUSLY PAID. MEMBERS OR STOCKHOLDERS WHO MAY ELECT FORM 990, PART VI, LINE 7A A VACANCY ON THE BOARD THAT OCCURS BEFORE THE EXPIRATION OF A DIRECTOR'S TERM OR BECAUSE ADDITIONAL DIRECTORS IN EXISTING OR NEW MEMBER CATEGORIES ARE REQUIRED SHALL BE FILLED (FOR THE UNEXPIRED TERM) BY AN ELIGIBLE INDIVIDUAL ELECTED BY MAJORITY VOTE OF THE REMAINING DIRECTORS WHO REPRESENT THE CATEGORY OF MEMBERS IN WHICH THE VACANCY OCCURRED. SEE FORM 990, PART VI, LINE 6 ABOVE FOR THE NATURE OF THE VOTING RIGHTS. DECISIONS SUBJECT TO APPROVAL FORM 990, PART VI, LINE 7B A CHANGE IN NFA'S ARTICLES OF INCORPORATION REQUIRES APPROVAL OF THE MAJORITY OF THOSE VOTING IN EACH MEMBERSHIP CATEGORY. FORM 990 REVIEW PROCESS FORM 990, PART VI, LINE 11B THE NFA TAX RETURNS ARE PREPARED BY A NATIONAL OUTSIDE PUBLIC ACCOUNTING FIRM. PRIOR TO FILING THE FORM 990 IT IS REVIEWED AND APPROVED BY NFA'S AUDIT COMMITTEE (THREE MEMBERS). THE REVIEW INVOLVES AN IN-DEPTH PRESENTATION BY NFA STAFF TO THE COMMITTEE. THE COMMITTEE WILL ALSO REVIEW THE OVERALL ACCURACY AND COMPLETENESS OF THE FORM 990. PRIOR TO FILING THE FORM 990, THE DRAFT RETURN WAS PROVIDED TO THE REMAINING VOTING MEMBERS OF NFA'S GOVERNING BODY. NFA'S COO ALSO REVIEWED THE 990 FOR OVERALL ACCURACY AND COMPLETENESS PRIOR TO FILING. CONFLICT OF INTEREST POLICY MONITORING & ENFORCEMENT FORM 990, PART VI, LINE 12C AT NFA'S BOARD OF DIRECTORS ANNUAL MEETING, NFA'S GENERAL COUNSEL PRESENTS, IN WRITING, NFA'S POLICY AND PROCEDURE ON CONFLICTS AND DUALITIES OF INTEREST ("POLICY"). EACH DIRECTOR IS SUBSEQUENTLY REQUIRED TO SIGN A WRITTEN STATEMENT THAT LISTS ANY AFFILIATION THAT MAY GIVE RISE TO POTENTIAL CONFLICTS AND DUALITIES OF INTEREST UNDER THE POLICY. THE WRITTEN STATEMENT ALSO ACKNOWLEDGES THAT THE DIRECTOR HAS RECEIVED, READ AND UNDERSTOOD, AND AGREES TO ABIDE BY NFA'S POLICY; AND THAT THE DIRECTOR WILL DISCLOSE, AS IT OCCURS, ANY AFFILIATION THAT MAY GIVE RISE TO A CONFLICT OR DUALITY OF INTEREST UNDER THE POLICY. NFA'S GENERAL COUNSEL REVIEWS AND MAINTAINS THESE WRITTEN STATEMENTS AND REFERS TO THEM AS MATTERS UPON WHICH THE BOARD ACTS ARISE. IF ANY DIRECTOR HAS AN AFFILIATION THAT MAY GIVE RISE TO A CONFLICT OR DUALITY OF INTEREST UNDER THE POLICY IN CONNECTION WITH A MATTER COMING BEFORE THE BOARD, NFA'S GENERAL COUNSEL BRINGS THE AFFILIATION TO THE BOARD'S ATTENTION IN THE EVENT THAT THE DIRECTOR DOES NOT. NFA'S STAFF IS REQUIRED TO ADHERE TO A CONFLICT OF INTEREST POLICY, WHICH IS MONITORED BY HUMAN RESOURCES. STAFF ANNUALLY COMPLETE THEIR CONFLICT OF INTEREST QUESTIONNAIRES, WHICH HUMAN RESOURCES REVIEWS AND MAINTAINS. IF ANY CONFLICTS ARISE, THE GENERAL COUNSEL DISCUSSES THE POTENTIAL CONFLICT WITH THE STAFF MEMBER, AND DOCUMENTS ACTIONS TAKEN; WHETHER DISPOSAL OF THE INTEREST OR ANY DISCIPLINARY ACTION UNDER THE CODE OF PROFESSIONAL CONDUCT IS WARRANTED DEPENDS ON THE LEVEL OF CONFLICT UNDER REVIEW. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, LINES 15A AND 15B THE COMPENSATION COMMITTEE IS COMPRISED OF THREE VOTING MEMBERS OF THE BOARD. FOR ALL OFFICERS EXCEPT THE CEO, THE CEO COLLABORATES WITH THE COMPENSATION COMMITTEE TO DETERMINE THE REMAINING OFFICERS' COMPENSATION. THE CEO AND THE COMPENSATION COMMITTEE DISCUSS EACH OFFICER'S CONTRIBUTION TO THE ORGANIZATION; THEY REVIEW COMPARABLE MARKET DATA PROVIDED BY NFA'S HUMAN RESOURCE DEPARTMENT AND DELIBERATE COMPENSATION RECOMMENDATIONS WHICH ARE DOCUMENTED AND PRESENTED TO THE EXECUTIVE COMMITTEE. THE SAME METHOD, AS DESCRIBED ABOVE, IS USED IN DETERMINING THE CEO'S COMPENSATION, ONLY THE CEO IS NOT PART OF THE PROCESS. THE EXECUTIVE COMMITTEE REVIEWS THE COMPENSATION COMMITTEE'S PROPOSED RECOMMENDATION AND EITHER ACCEPTS OR ADJUSTS THE PROPOSAL. THE EXECUTIVE COMMITTEE THEN MAKES THEIR RECOMMENDATION TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS EITHER APPROVES OR MODIFIES THE EXECUTIVE COMMITTEE'S RECOMMENDATION. THE BOARD THEN APPROVES FINAL COMPENSATION FOR OFFICERS. THE ORGANIZATION CONTEMPORANEOUSLY DOCUMENTS AND MAINTAINS RECORDKEEPING FOR DELIBERATIONS AND DECISIONS REGARDING THE COMPENSATION ARRANGEMENTS OF THE OFFICERS. HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC FORM 990, PART VI, LINE 19 THE ORGANIZATION MAKES ITS BYLAWS, ARTICLES OF INCORPORATION AND FINANCIAL STATEMENTS AVAILABLE ON ITS WEBSITE OR UPON WRITTEN REQUEST. CONFLICTS OF INTEREST POLICY IS AVAILABLE UPON REQUEST. SPECIAL ADVISOR TO THE BOARD FORM 990, PART VII NFA'S BOARD HAS APPOINTED A PERMANENT SPECIAL ADVISOR TO THE EXECUTIVE COMMITTEE AND THE BOARD OF DIRECTORS. THE PERSON HOLDING THIS ROLE RECEIVES A STIPEND FOR ATTENDING MEETINGS SIMILAR TO THAT OF MEMBERS OF THE BOARD.