CFTC Relief Letter Concerning Quarterly Account Statements of CPOs of Funds of Funds On November 6, 2014, the Division of Swap Dealer and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (“CFTC”) issued CFTC Letter No. 14-142 (“Letter 14-142”). Letter 14-142 grants exemptive relief to two commodity pool operators (namely, the applicant “CPOs”) from the 30-day period for distribution of quarterly statements to participants under CFTC Rule 4.7(b)(2). In order to receive such relief, the CPOs would instead provide the information required under CFTC Rule 4.7(b)(2) to participants on a monthly basis within 45 days of the month…...

As your industry advocate, the NIBA provides many services which help your business stay in compliance with NFA regulations. “Ask the NFA,” is the way you can ask questions about those regulations and compliance requirements without having to call NFA directly. Just email us at [email protected] and we will get the answers for you. Please keep in mind the purpose of this contact is to keep the lines of communication between NFA and NIBA members open, not to fix any specific individual concerns.  This month’s questions were selected from those submitted by NIBA members. The answers were supplied by NFA…...

On March 16, 2015, the Financial Crimes Enforcement Network (FinCEN) issued an advisory announcing that the Financial Action Task Force (FATF) had updated its list of jurisdictions with strategic AML/CFT deficiencies. NFA Member FCMs and IBs should review this advisory to ensure that their AML programs have the most current information on FATF-identified jurisdictions with AML/CFT deficiencies and revise their AML programs accordingly. A copy of the advisory is available on FinCEN’s website....

I was recently examined by NFA. It appeared like the examiner’s exam plan “play book” that did not completely fit my business. Please describe how NFA’s examination programs are structured. Specifically, are examination programs designed to review the unique aspects for the different registration types (i.e. FCMs, RFEDs, IBs, CTA and CPOs)? Yes. NFA examination programs are designed to allow for focused examinations of the different registrant types. Additionally, NFA plans each exam so that it’s tailored to the unique business operations and risks of the Member. No two Members’ businesses are exactly alike – even Members within the same…...

Roughly a month ago the Swiss National Bank rocked the world with a surprise announcement. During the middle of the night on January 15, 2015, Swiss banking authorities announced they would lift a three year exchange rate target of 1.20 Francs per Euro; a decision almost no one saw coming. The result? A meteoric rise in the value of the Franc against both the Euro and the US Dollar in a matter of minutes. At one point the Franc had rallied as much as 39%; a staggering move for any market but a real record setter for global foreign currency…...

Fund managers relying upon exemptions from registration as commodity pool operators (CPOs) pursuant to CFTC Rule 4.13(a)(1), 4.13(a)(2), 4.13(a)(3) or 4.13(a)(5) (or an exclusion in the case of CFTC Rule 4.5) must re-affirm their exemptions on file with NFA by March 2, 2015. While the re-affirmation filing is the responsibility of the CPO, introducing brokers (IBs) that do business with exempt CPOs need to ensure annually that CPOs that they do business with are properly exempt. Failure to do so could result in a violation of NFA Bylaw 1101, which provides that no NFA Member (including IBs and CPOs) shall…...

As your industry advocate, the NIBA provides many services which help your business stay in compliance with NFA regulations. “Ask the NFA,” is the way you can ask questions about those regulations and compliance requirements without having to call NFA directly. Just email us at [email protected] and we will get the answers for you. Please keep in mind the purpose of this contact is to keep the lines of communication between NFA and NIBA members open, not to fix any specific individual concerns.  This month’s questions were selected from those submitted by NIBA members. The answers were supplied by NFA…...

Dear Fellow IB, This letter serves as a request for your vote for my candidacy in the upcoming election for the NFA Board of Directors Independent IB position. I am honored to be the chosen candidate from all of the IBs considered for this position, including the current incumbent. Please cast your vote because your voice and opinion in this election are important. I believe there needs to be more transparency in the NFA rule making and governing process. Those of you who know me know that I am very supportive of enhanced customer protections and regulations designed to ensure…...

I believe individual investors and the small to midsize brokers & firms that service them are an important part of this industry, and that we need someone from such a firm to help look out for this integral segment of a futures industry increasingly dominated by the exchanges and big banks.    I also believe there is more to be done following the PFG and MF Global scandals, no matter how difficult or long it takes to bring about that change.   The issues I will continue to support on the NFA Board include: Better Staffing Standards for Audit Teams …...

Fellow CTA/CPO NFA Members: We write to ask you to cast your vote for us in the upcoming election for Board of Directors of the National Futures Association. While Board confidentiality rules limit us somewhat in what we can disclose in terms of our tenure at the Board level, we can honestly say that we have shown the same zeal for representing your interests as we did in our pro bono representation of thousands of MF Global and PFG bankruptcy victims, and will continue to do so once re-elected.  Since our election, we have continued standing up for the industry,…...