Association of Futures Brokers And Dealers (AFBD)

What Is Association Of Futures Brokers And Dealers (AFBD)

Association Of Futures Brokers And Dealers (AFBD) was an organization laid out by the major London futures exchanges to give regulatory supervision to brokers, dealers and different professionals in the futures industry.

The association was a self-managing organization when it was established in 1984, however was subsequently incorporated into the Financial Services Authority, or FSA, which itself has since been canceled, with its regulatory duties split between the new Financial Conduct Authority, or FCA, and Prudential Regulation Authority (PRA), which is structured as a limited company owned by the Bank of England.

Understanding Association Of Futures Brokers And Dealers (AFBD)

The Association of Futures Brokers and Dealers was formed to be a self-regulatory organization to manage futures broker and dealer activity. The association developed and kept up with standards to which British brokers and dealers on futures exchanges were expected to stick.

In 1991, AFBD merged with The Securities Association to form the United Kingdom's Securities and Futures Authority, or SFA, which sets the rules of fair practice as well as capital requirements for firms active in the [securities](/speculation securities), futures and options markets.

In 2001, the FSA was sent off, or rather renamed from the former Securities and Investments Board, assuming control over the job that had been played by SFA.

In 2010, then Chancellor of the Exchequer George Osborne announced the abolishment of the FSA with plans to appoint its powers across different agencies and the Bank of England. The plan was settled in 2013. FCA is the "conduct regulator for almost 60,000 financial services firms and financial markets in the UK and the prudential supervisor for more than 49,000 of those firms." Bank of England-owned PRA is creates rules requiring financial firms "to hold adequate capital and have adequate risk controls in place."

Regulation of Futures Brokers And Dealers today

Most futures firms today are regulated by the FCA. The agency issues admonitions, like this one, against specific brokers it considers as presenting expected risks to [investors](/financial backer): "We accept this firm has been offering financial types of assistance or products in the UK without our authorization. Figure out for what reason to be particularly careful about dealing with this unauthorized firm and how to safeguard yourself."

FCA keeps a Financial Services Register that permits consumers to guarantee that specific futures dealers are authorized by the agency. It likewise keeps a helpline for the people who have been moved toward by an unauthorized firm or feel they might be a survivor of a scam.

"Financial markets should tell the truth, fair and effective so consumers get a fair deal," as indicated by FCA. "We aim to make markets function admirably — for people, for business, large and small, and for the economy as a whole."