NFA Registration Requirements for Swap FCMs, IBs, CPOs and CTAs


[authors: Kevin M. Foley, Blake J. Brockway]

On August 22, the National Futures Association (NFA) proposed amendments to its bylaws and registration rules that will require any NFA member that is registered with the Commodity Futures Trading Commission as a futures commission merchant (FCM), introducing broker (IB), commodity pool operator (CPO) or commodity trading advisor (CTA) and that engages in swap activities that are subject to the jurisdiction of the CFTC to be approved as a “swaps firm” by NFA.

In addition, any individual that engages in swap activities on behalf of a swap FCM, IB, CPO or CTA must be approved as a swaps associated person. An NFA member will not be approved as a swaps firm unless it has a least one principal registered as a swaps associated person at all times, and NFA will deem a member firm that fails to do so to have requested the withdrawal of the swaps firm’s approval.

The proposed rule provides an exemption from the proficiency (Series 3) examination requirements for associated persons whose activities are limited solely to swaps.

The proposed rule is available here.

Additional information regarding NFA registration is available here.


Published In: Administrative Agency Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Katten Muchin Rosenman LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »