If at the time the mill needed to acquire the wheat, the cash market price of wheat was higher than the strike price , the mill would exercise the option and take delivery of the wheat and pay the ATOM the lower strike price . If, however, the price of wheat had fallen, the mill would simply allow the option to expire and purchase the wheat on the spot market at a lower price. In addition to providing options that are settled by delivery of the underlying commodity, merchants can offer options that settle solely through a cash payment. Only those persons that operate in commercial agricultural markets are eligible to be in the business of soliciting, offering or selling agricultural trade options. Completed registration forms should be returned to the NFA, Office of the Secretary, P.O. Box 98383, Chicago, Illinois 60693-0001.
Registration is indefinite.
You need only update the information on your application when changes occur. Applicants for ATOM registration must operate in commercial agricultural markets. In addition, there are a number of grounds that disqualify ATOMs and their principals and their APs from registering. For example, a potential registrant must not have had a prior registration revoked or been convicted of or enjoined from violating laws as specified in the pilot program rules relating to futures or securities trading, embezzlement, theft, fraud or similar types of wrongdoing. Also, the ATOM's sales representatives must be registered as APs and must notify the NFA if an AP terminates his or her employment.