It can be difficult to keep track the various regulatory announcements and changes that occur during a month.  To better assist you Turnkey Trading Partners has put together a summary of the major regulatory notices and adjustments which have occurred during the first half of 2019. Thankfully the CFTC and NFA rule making machine has slowed down!

CPO Internal Controls Policies Now in Effect!

On December 10^th, NFA released an interpretive notice under compliance rule 2-9 titled Commodity Pool Operator (“CPO”) Internal Controls Systems. As of April 1st, you are required to be compliant with the interpretive notice.  Among other things, the notice requires CFTC registered, NFA member fund managers to implement adequate written internal control systems, policies, and to put in place an ongoing risk analysis system. To read more about this obligation please click here.  For assistance in complying with these requirements, contact us today!

Amended ISSP & Incident Reporting Rules In Effect April 1st!

National Futures Association (“NFA”) recently amended its interpretive notice on Information Systems Security Programs (“ISSP” or “Cybersecurity”). The original notice became effective in March of 2016.  The changes require firms to update policies to include new considerations that NFA has identified. These changes were required to be made by April 1, 2019. To read more about this obligation click here.  For assistance in complying with these requirements, contact us today!

Swap AP Registration Requirements To Start…in 2021!

On March 25, 2019, NFA announced it would apply a proficiency requirement for Swap registrants. Information about this obligation is detailed within a new Interpretive Notice entitled NFA Bylaw 301 and Compliance Rule 2-24: Proficiency Requirements for Swap APs. Previously Swap only APs and registrants did not have to pass the Series 3 or any other examination before being registered.  What this means for swap firms, starting in 2021, is that any individual seeking approval as a Swap FCM, IB, CPO or CTA or as a swap AP must take and pass NFA’s Swaps Proficiency Requirements. It also means that starting January 1, 2020 swap firms will be paying more in NFA membership dues. These requirements appear to be training modules available through NFA’s website.  As of the date of this publication these training modules are not yet available. Check with Turnkey today to discuss whether or not you qualify as a Swap firm and how you may need to update your registration information.

Important! Filing Requirements for SWAP Valuation Disputes

NFA’s Interpretive Notice to NFA Compliance Rule 2-49, which became effective January 2, 2018, among other things, establishes a reporting requirement for certain swap valuation disputes involving swap dealers (SD). NFA staff has received several inquiries related to these filing requirements. This notice is a reminder that ALL NFA Member SDs, including non-U.S. SDs relying on substituted compliance with respect to CFTC Regulation 23.502(c), must comply with the filing requirements set forth in the Interpretive Notice.  For assistance in complying with these requirements, contact us today!