The U.S. self-regulatory organization for derivatives trading firms, the National Futures Association (NFA), has launched a new service that allows clients to review firms’ financial information.
In addition to publicly available disciplinary information, clients can now access financial reports, including information about their capital position, the status of their segregated accounts, and information on their secured funds. The move is designed to assist clients in their due diligence on Futures Commission Merchants (FCM).
“For markets to thrive, customers must have confidence in the institutions with which they do business,” says Karen Wuertz, NFA’s senior vice president, strategic planning and communications. “NFA is always looking for ways to improve how it helps investors navigate the futures markets. The public display of certain FCM financial information on our website will provide investors with another tool to help them conduct due diligence before choosing an FCM — a key financial decision.”
Earlier this year, an NFA committee recommended that firms’ financial information be made publicly available in order to increase transparency and strengthen customer protection.
The capital information will be updated on a monthly basis, and the information about segregated and secured funds will be updated on a semi-monthly basis.