NFA Submits Comments to CFTC about Proposed Amendments Concerning Records of Commodity Interest and Related Cash or Forward Transactions

The NFA submitted comments to the CFTC on proposed amendments to CFTC Rule 1.35, which would exclude commodity trading advisors ("CTAs") that are members of designated contracts markets ("DCMs") or swap execution facilities ("SEFs") from the requirement to record and maintain oral communications.

The NFA stated that it "fully supports" the proposed amendment that would codify the relief provided in CFTC Letter 14-147. However, the NFA questioned the revenue threshold of the CFTC's 2012 amendment to Rule 1.35 to exclude investment banks that generated $5 million or less in aggregate gross revenue from their operations over the preceding three years from the requirement to record oral communications. The NFA recommended that the CFTC "carefully consider in the near future" whether any adjustment can be made to increase this revenue threshold.

See: NFA Comment Letter.
Related news: CFTC Issues Relief from Certain Recordkeeping Requirements under Rule 1.35(a) (CFTC Letter 14-147) (with Delta Strategy Group Summary) (December 16, 2014); CFTC Proposal Regarding Records of Commodity Interest and Related Cash or Forward Transactions (Fed. Reg.) (November 14, 2014).