Today the NFA wrote a letter to the CFTC requesting more time to comment on pending regulation. This time, though, the regulation directly affects NFA. Specifically, the NFA wants to extend the deadline of the rulemaking period to February 13, 2103, a month beyond its previous date.
But what is the nature of the regulation? The CFTC was almost set to finalize rules that would affect futures commission merchants, clearing organizations, and the industry’s self-regulatory programs and the CFTC’s oversight of self-regulatory organizations (SROs).
NFA = SRO
The NFA is a SRO. From the letter:
With regard to the proposals impacting SROs, NFA is particularly concerned about the proposed changes to SRO examination practices, as well as the proposal that NFA and/or the Joint Audit Committee retain an examinations expert to review and render an opinion about their respective supervisory programs. With regard to these proposed requirements, the Commission states that “The Commission does not have adequate information to estimate the ongoing costs for biennial reviews by the examinations expert, or the incremental costs of additional controls testing or ongoing compliance with standards that the FCMs develop pursuant to Regulation 1.52(c)(2)(iii).”
The NFA, as a result of this lack of “adequate information” on the part of the CFTC, wants more time:
NFA believes that additional time is necessary for all interested parties to evaluate the costs and benefits of the proposal, to provide meaningful comments on the proposal, and to possibly propose alternative measures to provide increased customer protection and enhanced monitoring of FCMs.