NFA to Institute New Monthly Risk Reporting Requirements

The National Futures Association ("NFA") will institute new risk reporting requirements for swap dealers ("SDs") and major swap participants ("MSPs"). In a Notice to Members, the NFA explained that in order for it to (i) identify firms that may pose heightened risks, and (ii) gain more insight into those firms' risk profiles, SDs and MSPs will be obligated to submit electronically a monthly report on certain risk metrics.

The Notice provides detailed information on the required risk metrics and reporting guidelines. Monthly reports must be filed by the last business day of the month following the reporting month. The first report will cover risk data for December 2017 and will be due by January 31, 2018.