Series 3 regulations.

Part 2 of the Series 3 is all rules. It's drier than the market-knowledge half, but it's finite and very learnable with repetition. Start by getting the two main bodies straight.

CFTC vs. NFA

• CFTC (Commodity Futures Trading Commission) — the federal government agency that regulates the U.S. futures and options markets.
• NFA (National Futures Association) — the industry's self-regulatory organization. It handles registration, sets and enforces conduct rules, and runs arbitration.

Registration & disclosure

People and firms register in categories (AP, IB, CTA, CPO, FCM — see who needs the Series 3). CTAs and CPOs must generally deliver a disclosure document to a prospective client before accepting funds, covering fees, risks, and background.

Customer funds & promotional material

• Segregation of customer funds — customer money must be kept separate from the firm's own funds.
• Promotional material rules — advertising can't be misleading, and any hypothetical or simulated performance must carry the required disclaimers.
• Risk disclosure statement — customers must receive a standardized statement about the risks of trading futures and options.

Resolving disputes

Two paths appear on the exam: NFA arbitration (industry forum) and CFTC reparations (a government complaint process). Knowing which body handles which is a common question.

Drill regulations questions until the rules stick — the free set includes them.