NFA Proposes Amendment to Compliance Rule 2-4
The NFA filed with the CFTC a proposed amendment to NFA Compliance Rule 2-4 ("Just and Equitable Principles of Trade") regarding swaps-related activities.
NFA Compliance Rule 2-4 requires Members and Associates to observe "high standards of commercial honor and just and equitable principles of trade." The rule, however, is currently limited to a Member's commodity futures business.
The proposed amendment subjects swaps to the rule's ethical standards requirement, formally imposing the requirement upon swap dealers, major swap participants and other Members engaging in swaps activities.