Are You Using 'Finfluencers': Practical Guidance for CFTC-Registered Derivatives Intermediaries and Exchanges

Retail participation in futures, forex and swaps has accelerated markedly in recent years, propelled by low-cost access, mobile platforms and growing interest in crypto-referenced instruments, event contracts and micro-sized derivatives. This phenomenon marks the latest turn in a decades-long arc: retail derivatives first took off in the late 1990s with the advent of online retail forex and derivatives education providers, as internet brokers, margin access and platforms democratized trading that was previously reserved for institutions. Today, multiple intermediaries and exchanges expressly court retail users, and social media has become a primary channel for discovery and education. 

Against this backdrop, “finfluencers” — social media influencers who promote and market financial services and products — have emerged as powerful promoters and educators, capable of compressing complex concepts into viral short-form content. Their reach into Gen Z and Millennial audiences is undeniable, but their involvement in soliciting retail derivatives activity introduces regulatory and supervisory complexities that traditional frameworks did not anticipate. National Futures Association’s (NFA) promotional standards[1] and Commodity Futures Trading Commission (CFTC) supervision and anti-fraud rules apply, but they do not squarely or comprehensively address the influencer-led, short-form, algorithm-driven nature of solicitation on social platforms. As a result, intermediaries and exchanges face heightened compliance, conduct, and reputational risk when deploying finfluencers. 

Key Legal Touchpoints and Practical Risks

As a baseline, the CFTC’s anti-fraud authority prohibits misleading statements “in connection with” commodity interests. The NFA’s Compliance Rule 2-29 and related notices require fair, balanced, and non-misleading communications, with prominent risk disclosure and rigorous recordkeeping. For NFA members, Bylaw 1101 can be implicated if a member compensates an unregistered person who, in substance, is soliciting commodity interest customers. 

Separately, the CFTC’s supervision rule and NFA’s supervision expectations require firms to diligently supervise employees and agents — including third parties acting on the firm’s behalf — an area where influencer arrangements can fail if content is not pre-reviewed, archived, and monitored.[2] For DCMs, while marketing-specific rules are less prescriptive, general anti-fraud principles apply, and the Core Principles on conflicts and data protections set expectations for responsible market conduct and customer information use. 

Considerations When Using Finfluencers

Firms should construct influencer marketing programs on an explicit regulatory and supervisory spine, tailored to the realities of short-form, high-velocity content. While not an exhaustive list of considerations, firms' influencer marketing programs should address the following: 

• Role and registration. Assess whether the activity triggers introducing brokers or associated persons; avoid NFA Bylaw 1101 issues.
• Promotional standards. Apply NFA Compliance Rule 2-29 principles; fair/balanced content; clear risk disclosures; no guarantees or cherry-picking; testimonials with paid/past-performance disclosures.
• Supervision and records. Consider creating pre-approved scripts/posts; training talent on the NFA marketing and solicitation requirements; and archiving and monitoring for off-script edits or deletions.
• Compensation design. Avoid transaction-based or volume-based incentives and disclose compensation.
• Targeting Customers inside/outside the US. When targeting only US customers, consider using geo-fencing or attestations. For non-US campaigns, consult with local counsel regarding licensing and marketing requirements.
• Federal Trade Commission/platform rules. Use conspicuous “ad/paid partnership” tags and in-content, unavoidable disclosures suitable for short-form videos. 

Bottom Line

Finfluencers are now embedded in how retail audiences learn about and engage with derivatives, especially in crypto-referenced products and event markets. Intermediaries and exchanges can harness this channel, but only within a deliberately engineered framework that treats influencer content as regulated solicitation when the substance crosses that line. Registration analysis (avoiding NFA Bylaw 1101 concerns), strict application of NFA promotional rules, robust supervision and conflict-sensitive product governance are essential to mitigate regulatory and reputational risks while responsibly meeting retail demand.

If you have questions regarding the content covered in this article, please consult your contact within Katten's Financial Markets and Regulation team.