Request of the National Futures Association for Approval of Interpretive Notice to NFA Compliance Rule 2-4: Best Execution Obligation of NFA Members Notice-Registered as Broker-Dealers Under Section 15(b)(11) of the Securities Exchange Act of 1934 Concerning Security Futures Transactions

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The National Futures Association ("NFA") has submitted to the Commodity Futures Trading Commission (the "Commission" or "CFTC"), pursuant to Section 17(j) of the Commodity Exchange Act (the "Act"),\1\ a proposed Interpretive Notice (the "Interpretive Notice") to its Compliance Rule 2-4 regarding the best execution obligation of NFA members who are notice-registered with the Securities and Exchange Commission ("SEC") as broker-dealers under Section 15(b)(11) of the Securities Exchange Act of 1934 (the "'34 Act") \2\ with respect to security futures transactions. The Interpretive Notice would state the obligation and provide guidance as to the factors to be considered when processing customer orders and when establishing order routing practices, but it would permit flexibility in the manner in which a member fulfills its best execution obligation. The Commission has determined to provide an opportunity for public comment prior to its consideration of the Interpretative Notice. ---------------------------------------------------------------------------