On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission for review and approval proposed amendments to various NFA Compliance Rules and four NFA Interpretive Notices to incorporate swaps into these rules and notices.
Specifically, the NFA proposal would amend the following Compliance Rules:
- NFA Compliance Rule 1-1 (Definitions) to add related definitions;
- NFA Compliance Rules 2-2 (Fraud and Related Matters) to include references to swaps, counterparties and related concepts, including with respect to anti-fraud, anti-manipulation and other prohibitions;
- NFA Compliance Rule 2-3 (Sharing in Profits) to expand the rule to cover all commodity interests;
- NFA Compliance Rule 2-6 (Expelled or Suspended Member or Associate) to expand the rule to apply to all commodity interests and clarify the scope of the rule.
- NFA Compliance Rule 2-10 (Recordkeeping) to clarify that the requirements relating to English records and fluency apply to swap dealer members (among others);
- NFA Compliance Rules 2-38 (Business Continuity and Disaster Recovery) to clarify the Member categories subject to their coverage;
- NFA Compliance Rule 3-1 (Department of Compliance) to remove the limited purpose definition of commodity interest; and
- NFA Compliance Rule 3-15 (Member or Associate Responsibility Actions) to incorporate references to commodity interests and counterparties.
The Board also approved amendments to four Interpretive Notices to integrate the applicable rule amendments.
A copy of the proposed amendments is available here.