On May 21, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission proposed amendments to NFA Interpretive Notice Compliance Rule 2-9: Supervision of Branch Offices and Guaranteed IBs. The proposed amendments would replace and supersede an existing Interpretive Notice with the same title.
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On April 19, the Commodity Futures Trading Commission approved a final rule revising CFTC Regulation 160.5. The amended rule implements the Fixing America’s Surface Transportation Act’s (FAST Act) December 2015 statutory amendment to the Gramm-Leach-Bliley Act (GLB Act) by providing an exception to the requirement that certain futures commission merchants, retail foreign exchange dealers, commodity trading advisors, commodity pool operators, introducing brokers, major swap participants and swap dealers (each, a “covered person”) to provide annual privacy notices to their respective customers. (The obligation to provide an initial privacy notice is unchanged).
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On March 12, the National Futures Association (NFA) published Notice I-19-08, notifying Member futures commission merchants (FCMs) and introducing brokers (IBs) of a March 8 advisory published by the Financial Crimes Enforcement Network (FinCEN) regarding updates to the Financial Action Task Force’s list of jurisdictions with deficiencies regarding anti-money laundering and combating the financing of

On March 5, the National Futures Association (NFA) submitted with the Commodity Futures Trading Commission proposed amendments to NFA Bylaw 301 and Compliance Rule 2-24. The proposed changes to NFA Bylaw 301(l) are intended to specify that any individual applying for approval as a futures commission merchant (FCM), introducing broker (IB), commodity pool operator (CPO) or commodity trading advisor (CTA) member swap firm or swap associated person of an FCM, IB, CPO or CTA must take and pass the NFA’s Swap Proficiency Requirements to be granted approval as a swap firm or swap associated person (AP). In connection with this change, the NFA also proposed amendments to Compliance Rule 2-24 which, among other changes, would prohibit an FCM, IB, CPO or CTA member from having associated with it an individual engaged in CFTC regulated swap activities, unless such individual has satisfied the aforementioned requirements.
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On August 9, the National Futures Association (NFA) announced the effective date of its recently adopted Interpretive Notice, Disclosure Requirements for NFA Members Engaging in Virtual Currency Activities. The Interpretative Notice will go into effect on October 31 (“Effective Date”).
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On June 15, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission proposed amendments to NFA Compliance Rule 2-9(c) and the NFA Interpretive Notice entitled Compliance Rule 2-9: FCM and IB Anti-Money Laundering (AML) Program (collectively, the Amendments). Rule 2-9(c) requires futures commission merchants (FCMs) and introducing brokers (IBs) to develop and implement anti-money laundering programs designed to achieve compliance with the requirements of the Bank Secrecy Act.

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On March 27, the National Futures Association (NFA) issued Notice I-18-07, reminding commodity pool operators (CPOs), commodity trading advisors (CTAs) and introducing brokers (IBs) to immediately notify NFA by amending the firm-level section of their respective annual questionnaires if they trade any virtual currency products or solicit or accept any order in virtual currency products, as applicable. (See notice I-17-28 and I-17-29, as reported in the Corporate & Financial Weekly Digest edition of January 12, 2018.)
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On December 14, 2017, the National Futures Association (NFA) issued Notices regarding commodity pool operators (CPOs), commodity trading advisors (CTAs) and introducing brokers (IBs), outlining new reporting requirements for CPOs, CTAs and IBs that deal in virtual currencies.
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On December 11, at the request of the Futures Industry Association (FIA), the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (Division) issued an interpretive letter regarding the “solely incidental” exclusion from registration as a commodity trading advisor (CTA). Under the relevant provisions of the Commodity Exchange Act and CFTC rules, a futures commission merchant (FCM), swap dealer (SD) or introducing broker (IB) that provides commodity trading advice is required to be registered separately as a CTA unless such advice is “solely incidental” to the conduct of such registrant’s business as an FCM or SD (or “solely in connection with” such registrant’s business as an IB).
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On November 30, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight granted no-action relief for futures commission merchants (FCM) and introducing brokers (IB) consolidating risk disclosure statements sent to non-institutional customers (customers that are not eligible contract participants).

CFTC regulations require an FCM or IB to provide each non-institutional customer with