On Monday, November 27, 2021, the National Futures Association (NFA) submitted to the CFTC proposed amendments to NFA Compliance Rule 2-7 to exclude associated persons (APs), designated as “swap” APs, from the Branch Office Manager Examination requirement. The proposed amendments will become effective on January 3, 2022. 

NFA Compliance Rule 2-7 generally prohibits a Member from permitting an AP to act as a branch office manager unless the AP has taken and passed the NFA’s Branch Office Manager Examination (Series 30). Currently, this rule extends to APs approved as “Swap APs” who act as branch office managers for NFA members that are engaged solely in swaps activities. However, Swap APs are also required to pass the NFA’s Swaps Proficiency Requirements, which include a section on supervision and are directly related to a NFA members’ swap activities. The NFA Board has determined that it is no longer necessary for Swap APs to pass the Series 30, which in addition to supervision covers topics not directly applicable to a branch office solely engaged in swaps. Accordingly, amended NFA Compliance Rule 2-7 excludes Swap APs who have passed the Swaps Proficiency Requirements from the requirement to also pass the Series 30. The NFA Board unanimously approved this amendment on November 18, 2021 which, as noted above, will become effective on January 3, 2022. 

Further information regarding the amendment can be found in NFA’s November 22, 2021 submission letter to the CFTC, which can be accessed via the following link: Proposed Amendments to NFA Compliance Rule 2-7 Regarding NFA's Branch Office Manager Examination Requirement (futures.org).

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