<p>The National Futures Association (NFA) is a self-regulatory organization for the U.S. derivatives industry. It oversees futures commission merchants (FCMs), introducing brokers (IBs), commodity pool operators (CPOs), and commodity trading advisors (CTAs).</p>

<h2>How It Works</h2>
<p>The NFA operates under the Commodity Exchange Act and regulations issued by the Commodity Futures Trading Commission (CFTC). It performs the following functions:</p>
<ul>
  <li>Develops and enforces rules for its members.</li>
  <li>Provides education and training programs.</li>
  <li>Maintains records of member activities and customer funds.</li>
  <li>Handles disciplinary actions and arbitrations.</li>
</ul>
<p>The NFA also manages the Futures Industry Operations Oversight Committee, which promotes best practices in operations and risk management.</p>

<h2>Why It Matters</h2>
<p>The NFA plays a crucial role in maintaining integrity and protecting market participants. For instance, it ensures that FCMs maintain sufficient capital and customer funds are segregated, safeguarding investors' interests. In 2021, the NFA processed over 1,500 disciplinary cases, demonstrating its active role in enforcing industry standards.</p>