NFA: CFTC Approves NFA Rule Regarding Swap Dealers and Major Swap Participants (with Lofchie Comment)

The CFTC has approved NFA Compliance Rule 2-49 ("Swap Dealers and Major Swap Participants Regulations"), which provides the NFA with increased oversight and enforcement ability in order to meet enforcement requirements. The new rule provides that any violation by a swap dealer ("SD"), major swap participant ("MSP") or "Member" pursuant to CFTC Rule 3.3 ("Chief Compliance Officer") or any of the applicable CFTC Part 23 Rules ("Swap Dealers and Major Swap Participants") would also be deemed a violation of an NFA requirement. In determining whether a Member violated NFA Compliance Rule 2-49, the NFA will consider CFTC staff-issued no-action relief and "other CFTC conditions impacting the particular CFTC requirement."

The new rule is effective immediately.

Lofchie Comment: What does it mean to say that the NFA will be mindful of "other CFTC conditions"? This makes it sound as if there were requirements beyond the written law.

See: NFA Notice to Member I-13-42; Text of New Rule.See also: NFA Compliance Calendar and CFTC Compliance Calendars for New Rules and No-Action Letters (accessible to Cabinet Subscribers only).