NFA - Swap Registration Requirements - Proposed Amendments to NFA Bylaw 301 and Registration Rules 401/402

NFA submitted to the CFTC proposed amendments to NFA Bylaw 301 and Registration Rules 401 and 402 regarding swaps activity eligibility and proficiency requirements. In order to track firms and individuals engaged in swaps activities, NFA's Board approved an amendment to Bylaw 301 to require FCMs, IBs, CPOs and CTAs whose activities involve swaps, and the APs of these firms, to be approved as swap firms or swaps-associated persons (every swaps firm would be required to have at least one associated person).

NFA has not developed a new proficiency examination specific to swaps in large part because all the regulatory requirements for swaps activities have yet to be promulgated and made effective. Further as to proficiency exams, no exam would be required for persons whose CFTC-governed activities were related solely to swaps or, in the case of non-U.S. persons, limited additional futures activities might be permitted subject to some extensive conditions, such as having passed an alternative examination.

The NFA is invoking the "ten-day" provision of Commodity Exchange Act Section 17(j), and will make these proposals effective ten days after receipt of this submission unless the CFTC announces that it has determined to review the proposals for approval.

[Lofchie Comment: The exemption for taking proficiency examinations is quite limited.]

Cross Reference(s): Commodity Exchange Act Section 17(j) (Register Future Associations - Changes or Additions to Association Rules); NFA Bylaw 301 (Requirements and Restrictions); NFA Registration Rules 401(Qualification Testing Requirement) and 402 (Waiver of Testing Requirement).

View submission in full here (links externally to NFA website).