FIA Issues Notice to Customers Regarding Compliance with New EFRP Rules

The FIA ("Futures Industry Association") issued a notice ("Notice") regarding privately negotiated off-exchange futures or option on futures transactions, which are known as exchange for related positions ("EFRP"). The Notice provides a short summary of certain common requirements of the rules and guidance issued by CME Group and ICE Futures.

In the Notice, FIA explained that customers are subject to the jurisdiction of the exchange through which the EFRP transaction is entered into; therefore, they could be required to produce records and otherwise cooperate with any inquiry that exchanges may undertake with respect to the EFRP transaction. Moreover, FIA reminded customers that they might be sanctioned by the exchange if an EFRP transaction does not comply with the requirements of applicable exchange rules and guidance. FIA recommended that customers review these requirements with any employees who might engage in EFRP transactions on their behalf.

See: FIA Notice to Customers.