NFA Notice: Effective Date of Requirement for Banks and Trust Companies to Report Customer Balances

The NFA had recently amended NFA Financial Requirements Section 4 to require FCMs that hold customer segregated funds under CFTC Regulation 1.20, customer secured amount funds under CFTC Regulation 30.7 or cleared swaps customer collateral under CFTC Regulation 22.2 (collectively, "customer segregated funds") to, in turn, instruct the depositories holding these funds on behalf of the FCMs to report the balances in these accounts on a daily basis to a third party designated by the NFA. These rule amendments are being implemented in phases. The attached notice warns FCMS that the first phase goes into effect on Feb. 15, 2013. By that day, any bank or trust company depository holding customer segregated funds or securities must be able to report those balances as required by the NFA.

View Notice in full here (links externally to NFA website).See also: link to news story on NFA Rule adoption:NFA Enhances Monitoring of FCMs, Amends FX Capital Requirements.