Eurex US was told on Friday that the Board of Directors of the National Futures Association (NFA) had approved by a vote of 16-2 an agreement to provide market surveillance and trade practice surveillance services for Eurex US.
“We are pleased that the partnership with Eurex US was reaffirmed by the NFA’s board of directors,” says Rudolf Ferscha, CEO of Eurex. “Eurex US looks forward to working with the leading U.S. provider of regulatory services to provide market and trade practice surveillance. We believe that a strong regulatory program will protect customers and market participants alike.”
Eurex US signed a Regulatory Services Agreement with the NFA on November 5. The initial term of the agreement is three years, with automatic one year renewals. The NFA is an independent, non-profit organization and currently provides regulatory services for two U.S. exchanges.
Market surveillance ensures that futures markets are free from manipulative trading, price distortions or market congestions. Trade practice surveillance monitors member conformance with exchange trading rules. In addition, the NFA will assist Eurex US in performing both background checks on potential members and financial and disciplinary checks on a continued basis, ensuring that members meet the appropriate eligibility standards.