Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: NFA

NFA Adopts Interpretive Notice on Swap Valuation Disputes

Posted in CFTC, Derivatives
National Futures Association (NFA) has adopted an interpretive notice that standardizes the process for filing swap valuation disputes with NFA. As set forth in the interpretive notice, swap dealers (SDs) generally are required to file with NFA notices of unresolved swap valuation disputes involving initial margin, variation margin and/or transaction or portfolio valuations if the… Continue Reading

NFA Adopts 4s Attestation Process for Swap Dealers and Major Swap Participants

Posted in CFTC, Derivatives
National Futures Association (NFA) has revised the process by which each swap dealer (SD) and major swap participant (MSP) applicant demonstrates its ability to comply with Commodity Futures Trading Commission regulations implementing Section 4s of the Commodity Exchange Act (4s Regulations), including but not limited to regulations relating to capital and margin requirements, reporting and… Continue Reading

NFA Publishes Information For CTAs Using Third-Party Recordkeeping

Posted in CFTC
On June 30, the National Futures Association (NFA) published Notice to Members I-17-11, establishing an electronic process for a registered commodity trading advisor (CTA) to notify the NFA where the CTA uses a third-party recordkeeper. This notice is effected through the NFA’s electronic Exemptions System by claiming a “4.7(c)(2)” or “4.33” exemption, as applicable, and… Continue Reading

NFA Issues Notice Regarding Monthly Risk Data Reporting Requirements for Swap Dealers

Posted in CFTC
On May 30, the National Futures Association (NFA) issued Interpretive Notice I-17-1 (Notice), which sets forth the specific list of risk metrics that swap dealers (SDs) will be required to electronically report to NFA on a monthly basis, beginning with the initial January 31, 2018, reporting deadline. NFA intends to use this information to assess… Continue Reading

NFA Issues Notice Regarding Updated FinCEN AML/CFTC Guidance

Posted in CFTC
On April 10, the National Futures Association (NFA) published Notice I-17-09, which notified member futures commission merchants (FCMs) and introducing brokers (IBs) of an April 5 advisory published by the Financial Crimes Enforcement Network (FinCEN), regarding updates to the Financial Action Task Force’s list of jurisdictions with strategic anti-money laundering and combating the financing of… Continue Reading

NFA Announces Cybersecurity Member Regulatory Workshop Sessions

Posted in CFTC
On April 12, the National Futures Association (NFA) announced two upcoming Member Regulatory Workshop sessions that will discuss members’ regulatory responsibilities regarding cybersecurity. NFA staff will provide updates on their cybersecurity examination findings, and a panel of experts will share best practices. The sessions will be held in New York on May 10 and in… Continue Reading

NFA Issues Notice to Members Regarding CPO/CTA Exemption Affirmations

Posted in CFTC
On January 11, National Futures Association (NFA) issued Notice I-17-02, which reminds NFA members of their obligations with respect to commodity pool operators (CPOs) and commodity trading advisors (CTAs) exempt from registration. The Commodity Futures Trading Commission requires any person claiming an exemption from CPO registration under CFTC Regulation 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), 4.13(a)(5), an exclusion… Continue Reading

NFA Announces Effective Date for Forex Transactions Requirements

Posted in CFTC
The Commodity Futures Trading Commission recently approved National Futures Association’s (NFA) amendment to NFA Compliance Rule 2-36. The amendment requires forex dealer members to supply customers and NFA with certain transaction execution data upon customer request. More information about the amendment is available in the December 2 edition of the Corporate & Financial Weekly Digest.… Continue Reading

Changes in Required Minimum Security Deposits for Forex Transactions

Posted in CFTC
On November 28, National Futures Association changed the minimum security deposits required to be collected for certain forex transactions in response to margin changes that CME and ICE recently implemented. For foreign currency futures involving the Mexican peso, Japanese yen and New Zealand dollar, forex dealer members must collect and maintain the following increased minimum… Continue Reading

NFA Proposes Changes to Forex Customer Disclosure Requirements

Posted in CFTC
On November 25, National Futures Association (NFA) submitted to the Commodity Futures Trading Commission a proposed amendment to NFA Compliance Rule 2-36. The amended rule would require a forex dealer member (FDM), upon customer request, to disclose the following information for each of the 15 forex transactions in the same currency pair occurring immediately before… Continue Reading

NFA Increased the Required Minimum Security Deposit for Forex Transactions

Posted in CFTC
National Futures Association (NFA) has increased the minimum security deposit that forex dealer members must collect and maintain for currency pairs involving the British pound to 5 percent. (The previous minimum security deposit for currency pairs involving the British pound was 2 percent). The increase went into effect on November 7.… Continue Reading

NFA Proposes Amendments to CPO and CTA Quarterly Reporting Requirements

Posted in CFTC
On September 6, the National Futures Association (NFA) filed with the Commodity Futures Trading Commission for approval an amendment to NFA Compliance Rule 2-46 (CPO and CTA Quarterly Reporting Requirements) and a proposed NFA Interpretive Notice NFA Compliance Rule 2-46: Reporting Financial Information on NFA Forms PQR and PR. NFA Compliance Rule 2-46 requires member… Continue Reading

NFA Issues Notice Regarding Jurisdictions With AML/CFT Deficiencies

Posted in CFTC
On September 14, the National Futures Association (NFA) published Notice I-16-19, which notified member futures commission merchants (FCMs) and introducing brokers (IBs) of a September 7 advisory published by the Financial Crimes Enforcement Network (FinCEN) regarding updates to the Financial Action Task Force’s list of jurisdictions with strategic anti-money laundering and combating the financing of… Continue Reading

NFA Issues Notice Regarding the Designation of Executive Representatives for Electronic Voting Purposes

Posted in CFTC
On August 24, the National Futures Association (NFA) issued Notice I-16-18, advising member firms they will need to designate an executive representative in connection with NFA’s upcoming electronic voting system. Beginning with the 2017 election of NFA’s Board of Directors, NFA will replace paper ballots with a new electronic voting system. The designated executive representative… Continue Reading

NFA Updates Self-Examination Questionnaire

Posted in CFTC
On August 15, National Futures Association issued a series of updates to its Self-Examination Questionnaire, which all NFA members must complete annually. The revised questionnaire adds a section to the Supplemental Questionnaire for introducing brokers on Forex Electronic Trading Systems and provides additional technical clarifications under the financial section of the Supplemental Questionnaire for commodity pool… Continue Reading

NFA Issues Notice Regarding the Approval Process for New Margin Models Used by Covered Swap Entities

Posted in Antitrust, CFTC, Derivatives, Dodd-Frank Developments
On April 14, National Futures Association (NFA) issued Notice I-16-03, which provides further details regarding NFA’s review and approval process for margin models used by swap dealers and major swap participants that are not subject to the oversight of a prudential regulator (Covered Swap Entities). To comply with Commodity Futures Trading Commission margin rules, Covered… Continue Reading

NFA To Review Initial Margin Models for SDs and MSPs

Posted in CFTC, Derivatives, Dodd-Frank Developments
National Futures Association (NFA) has issued a notice reminding its swap dealer (SD) and major swap participant (MSP) members of their obligations under the new uncleared swap margin requirements adopted by the Commodity Futures Trading Commission. Under the CFTC’s new margin rules, SDs and MSPs that are not subject to oversight by a prudential regulator… Continue Reading

NFA Issues Notice Regarding Cybersecurity Self-Examination Questionnaire

Posted in CFTC, Derivatives, Dodd-Frank Developments
On February 29, National Futures Association (NFA) issued Interpretive Notice I-16-10, which notifies member firms about the addition of a cybersecurity section to NFA’s Self-Examination Questionnaire. This section is designed to help assist member firms in complying with NFA’s Interpretive Notice to NFA Compliance Rules 2-9, 2-36 and 2-49 entitled Information Systems Security Programs (Notice).… Continue Reading

NFA’s Interpretive Notice on Information Systems Security Programs Becomes Effective on March 1

Posted in CFTC
National Futures Association (NFA) has issued a reminder that its interpretive notice on information systems security programs becomes effective on March 1. The interpretive notice, which was discussed in detail in the September 4, 2015 edition of Corporate & Financial Weekly Digest, applies to all membership categories.… Continue Reading