NFA Publishes 2015 Annual Review

The National Futures Association issued its 2015 Annual Review. The publication highlights NFA's yearlong efforts regarding cybersecurity, technology, regulation, enforcement and education. Specifically, the NFA detailed its efforts regarding:

Advancing Cybersecurity Measures

• The NFA released an Interpretive Notice on Cybersecurity that requires members to adopt and enforce procedures to secure customer data and access to members' electronic systems.

Strengthening Technology

• ORS: The NFA developed a plan to rebuild its Online Registration System ("ORS"), the web-based application that allows firms and individuals to register with the CFTC and apply for NFA membership. The plan to rebuild also will modernize the system's underlying web technology in order to improve users' experience.
• The NFA began to rebuild and expand the Financial Analysis and Audit Compliance Tracking System ("FACTS") - the NFA's primary analytical system for monitoring financial reporting by commodity pools.

Strengthening Regulation

• In the wake of market turmoil caused by the abrupt devaluation of the Swiss franc in January 2015, the NFA worked with the CFTC to develop changes to the forex dealer member capital requirements.
• The NFA worked with the CME Group to (i) develop recommendations on the applicable standards for the CFTC's review of the NFA's examination of futures commission merchant ("FCM") compliance with auditing standards and (ii) modify the FCM examination programs to comply with the CFTC's new requirements.
• The NFA submitted amendments to its Articles of Incorporation, which will change the structure and composition of the NFA's Board of Directors, reducing the size of the board from 37 to 29 directors.
• The NFA continued to develop its regulatory program that applies to swap dealers and major swap participants.

Enforcement Actions

• The NFA (i) issued 4 member responsibility actions and 37 complaints against 67 respondents, (ii) ordered 20 expulsions and eight suspensions, and collected $2.5 million in fines, (iii) opened more than 2,200 fitness investigations, and (iv) disbursed more than $1.7 million in restitutions to over 250 harmed investors.

Providing Education

• The NFA (i) held eight education programs for members on regulatory trends, (ii) began producing videos of each quarterly board meeting and (iii) conducted the first "town hall" webinar for NFA members in March 2015.

2015 Financials

• The NFA provided its 2015 financial statements and expenses.