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NFA Reminds Members to Satisfy New Swaps Proficiency Requirements

NFA reminded members of recently amended (i) NFA Bylaw 301 and NFA Compliance Rule 2-24, and (ii) Interpretive Notice implementing swaps proficiency requirements.

As previously covered, the amendments require that any individual engaged in swaps activities (whether registered as a swap firm intermediary or swap-associated person ("AP")), or simply acting as an AP of a swap dealer, satisfies NFA's Swaps Proficiency Requirements. NFA stated that the swaps proficiency requirements will become effective on January 31, 2020.

The Interpretive Notice, titled NFA Bylaw 301 and Compliance Rule 2-24: Proficiency Requirements for Swap APs, provides more information on meeting NFA swaps proficiency requirements. The Notice lays out the implementation schedule for those requirements. According to NFA, individuals who are "approved as swap APs" at a futures commission merchant, introducing broker, CPO or CTA member firm or acting as an AP at a swap dealer on January 31, 2021 must have met the swaps proficiency requirements in order to remain approved as a swap AP or continue as an AP at a swap dealer following this date.

These requirements, however, do not apply to certain individuals acting outside the United States as APs to non-U.S. counterparties.

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