Compliance Information for Swap Dealers and Major Swap Participants

As part of the registration process, SDs and MSPs are required to submit documentation to demonstrate compliance with CFTC regulations Implementing Sections 4s(e), 4s(f), 4s(g), 4s(h) and 4s(i) of the CEA (Section 4s Implementing Regulations*) that have an effective compliance date as of the completed registration application date and are applicable to the applicant. SDs and MSPs must submit this documentation to NFA for review via a web-based system called the Registration Documentation Submission System (RDSS), which is part of NFA's EasyFile system. Once NFA receives the completed Form 7-R application (and required Forms 8-R) and 4s documentation, NFA will notify the applicant that it is provisionally registered.

View The Registration Process: The 4s Document Submission Process for Swap Dealers and Major Swap Participants video tutorial for more information on the 4s submission process.

NFA recommends SDs/MSPs to submit 4s documents one to two weeks prior to the date they are seeking to be provisionally registered. Once NFA notifies an applicant that it is provisionally registered, NFA will review the applicant’s 4s Implementing Regulation documentation to determine whether the documentation demonstrates compliance with the applicable regulations.

NFA will accept an SD's and MSP's documentation demonstrating compliance with Section 4s Implementing Regulations beginning on the effective date of the particular final 4s Implementing Regulation. In general, an SD or MSP should submit policies and procedures that address the requirements set forth in any final CFTC Implementing Regulations with which the firm is required to comply. It is important for each firm to review the final Section 4s Implementing Regulations and ensure that its policies or procedures address all of the relevant requirements.

Please review documentation submission with due dates chart for Section 4s Implementing Regulations.

As a part of the 4s review process, NFA may request additional information or supporting materials from an SD or MSP. Supplemental information may be provided to NFA by appending those documents to the documentation originally submitted with respect to a particular Section 4s Implementing Regulation. For a listing of supplemental information that is currently anticipated, please click here. The list of supplemental information is not exhaustive. NFA may make additional requests as part of the 4s review process. It is important that each SD or MSP respond promptly to any such requests.

Provisional registration will be maintained as long as the SD or MSP continues to submit the documentation required to demonstrate compliance with additional Section 4s Implementing Regulations on or before the mandated compliance date for those requirements and NFA determines that the documentation demonstrates compliance with them. A failure of an SD or MSP to submit the required documentation to demonstrate compliance with an applicable Section 4s Implementing Regulation on or before the date compliance is required or a determination by NFA that the submitted documentation does not demonstrate compliance with the applicable requirement may result in the SD's or MSP's registration application being deemed withdrawn.

If NFA determines that an applicant’s documentation does not comply with the applicable Section 4s Implementing Regulation, NFA staff will discuss these matters with the SD or MSP and attempt to resolve any deficiencies. If the SD or MSP fails to remedy any deficiencies and the Section 4s Implementing Regulation’s compliance date has passed, NFA will formally notify the SD or MSP that its application is deficient, that it must withdraw its application for registration, and that it is no longer provisionally registered. CFTC Regulation 3.10(a)(1)(v)(D)(1) outlines the process for an applicant to cure such deficiencies and continue to be provisionally registered.

A provisionally registered SD or MSP will become a registered SD or MSP when compliance with all the Section 4s Implementing Regulations is required, the SD or MSP is in compliance with all such requirements and neither the SD or MSP nor any of its principals are statutorily disqualified from registration pursuant to Section 8a(2) or (3) of the CEA.

*The CEA imposes substantive ongoing compliance requirements for SDs/MSPs in a number of areas including capital and margin, reporting and recordkeeping, daily trading records, business conduct standards, documentation standards, monitoring of trading, risk management procedures, disclosure of information, ability to obtain information, conflicts of interest, segregation of collateral, and a requirement that each SD/MSP designate a chief compliance officer who is a principal of the firm. The CFTC has proposed and is in the process of finalizing the Section 4s Implementing Regulations pertaining to these ongoing compliance requirements.

If you have any questions concerning the 4s submission process, NFA's Information Center is available Monday through Friday from 8:00 a.m. to 5:00 p.m. CST to answer your questions. Call (312) 781-1410 or toll-free at (800) 621-3570. You may also email inquiries to information@nfa.futures.org. Questions on the substantive requirements of the Section 4s Implementing Regulations should be directed to the CFTC staff contacts identified in the respective rulemaking.

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