NFA Proposes Amendment to Fee structure for Arbitration Administration and Claim Tiers
September 9th | 2020
The National Futures Association (NFA) recently submitted a proposal to the Commodity Futures Trading Commission (CFTC) to amend the NFA's Code of Arbitration and Member Arbitration Rules to increase the fees NFA charges in connection with administering arbitration claims as well as restructure the claim tiers to reflect the fact that claim amounts have substantially increased over the years. In addition, the NFA is proposing several other amendments related to claims involving Members and Associates who withdraw their membership during an arbitration proceeding, the rules regarding service of process and the rules that govern the time and place of hearings.
These amendments appear to follow the recent trend where regulators are updating longstanding thresholds and fee structures. In fact, this proposal allows for service by email and for virtual hearings, which are quite practical for normal times and necessary in light of today’s current events.