NFA adopted supervisory requirements and technical amendments concerning swap activities.
News & Insights
The NFA adopted amendments to its Compliance Rules and Interpretive Notices to cover transactions and counterparties involving swaps.
A swap dealer agreed to pay $900,000 to settle National Futures Association ("NFA") charges relating to initial margin for uncleared swaps. The NFA alleged that the firm used insufficient methods to evaluate the risks of its uncleared swaps and failed to appropriately back test, benchmark and verify its margin model. The NFA alleged that the swap dealer (i) neglected to take the necessary steps to meet the initial margin and variation margin collection requirements, (ii) failed to adequately supervise its business activities with respect to margin and model monitoring, and (iii) submitted
On September 14, 2018, the CFTC filed and settled 12 enforcement actions against multiple firms and individuals for registration, position limits, recordkeeping, supervisory and reporting violations.
The CFTC's Division of Swap Dealer and Intermediary Oversight (DSIO) announced the issuance of the attached no-action letter relating to the fingerprinting requirement under CFTC Rule 3.10(a)(2) for certain principals of CFTC registrants. The no-action letter is in response to requests from market participants for relief from the fingerprinting requirement for principals of CFTC registrants where the principals have not resided in the United States since reaching 18 years of age (Non-U.S. Principals). Specifically, the no-action letter provides that DSIO will not recommend an enforcement