On August 15, 2016, the National Futures Association (NFA), the self-regulatory organization for the U.S. derivatives industry, made revisions to its Self-Examination Questionnaire that is required to be completed annually by Financial Commission Merchants (FCMs), Forex Dealer Members (FDMs), Introducing Brokers (IBs), Commodity Pool Operators (CPOs), and Commodity Trading Advisors (CTAs). This questionnaire is designed to assist these members with identifying potential problem areas, as well as any procedures that need to be updated.
While this questionnaire is not filed with the NFA, FCMs, FDMs, IBs, CPOs and CTAs are required to have the completed form signed and dated by an appropriate manager and then retain the document as part of the firm’s books and records for five years. Using this tool to review their operations allows the member to satisfy their continuing supervisory responsibilities under NFA Compliance Rules 2-9, 2-36 and 2-39.
As part of this most recent update, the NFA added a section for IBs on Forex Electronic Trading Systems—NFA Compliance Rules 2-39 and NFA Interpretive Notice 9060. Additionally, technical clarifications were made on Financial—CFTC Regulation 4.22, 4.23 and 4.27, and NFA Compliance Rule 2-13 for CPOs.
NFA revises its questionnaire annually, as well as when relevant rules are added or updated. For this reason, it is important for NFA member firms to always be aware of updates and regulatory changes in their industry.
For more information on how Core Compliance & Legal Services, Inc. can assist with understanding and adhering to applicable regulatory requirements, please call us at (619) 278-0020. Thank you.