Financial Requirements FAQs
FCMs, RFEDs and Independent IBs are required at all times to maintain Adjusted Net Capital greater than their minimum net capital requirement. Adjusted Net Capital is computed as follows: Current Assets – Liabilities – Charges Against Capital = Adjusted Net Capital. See CFTC Regulation 1.17 for information on how to calculate current assets, liabilities and charges against capital.
Immediately notify the appropriate regulator. FCMs and RFEDs must immediately call the regional office of the CFTC, the CFTC's Washington DC office, and the firm's DSRO. If the firm is also a securities broker-dealer, it must also notify the SEC. Within 24 hours of the call, the firm must send written notification to these same organizations via facsimile. IBs must immediately call NFA and all FCMs the IB introduces accounts to. Likewise, the IB must send written notification via facsimile to all of these organizations within 24 hours of the call. See CFTC Regulation 1.12.
An undercapitalized firm must also take immediate action to bring its Adjusted Net Capital above the firm's minimum net capital requirement. Financial statements and supporting documentation must be sent to the agencies that received notification.
FCMs and RFEDs must file monthly unaudited statements no later than 17 business days after the end of the month. Generally, Independent IBs must file semi-annual unaudited statements no later than 17 business days after the end of the six-month period. However, if the Independent IB is also a securities broker-dealer, it should file using the same cycle for which it files its FOCUS forms. Generally, FCMs must file annual certified statements no later than 60 days after the close of the firm's fiscal year, and RFEDs and Independent IBs must file annual certified statements no later than 90 days after the close of the firm's fiscal year. However, if the firm is also a securities broker-dealer, its annual certified statement must be filed no later than 60 days after the close of the firm's fiscal year.
FCMs and RFEDs must file all monthly unaudited financial statements electronically using the WinJammer™ system. A copy of this filing must also be sent to the CFTC. Certified financial statements for FCMs and RFEDs must be filed through the WinJammer™ system.
Independent IBs must also file their financial statements electronically. Broker-dealers filing FOCUS II or FOCUS IIA must use WinJammer™ to submit their unaudited and certified financial statements. 1-FR-IB filers must use EasyFile to file both their unaudited and their certified financial statements.
WinJammer™ users go to Electronic Filings to file their statements and to learn how to become authorized to make filings. EasyFile users also go to Electronic Filings to file their statements, but they must ask their firm's Security Manager to authorize specific individuals to use the system.
If financial statements are not filed by their due date, the Member will be charged a late filing fee of $1,000 per business day late.
An FCM that holds customer segregated funds, funds received from foreign futures and options customers, and funds received from cleared swaps customers must file daily reports with NFA by noon of the following business day. The FCM must inform NFA's Compliance Department prior to accepting customer funds, and NFA will then set up a web-based reporting system for that FCM.
In addition to filing daily reports, an FCM who holds customer segregated funds, secured amount funds and/or cleared swaps customer collateral must file the Segregated Investment Detail Report (SIDR) on a semi-monthly basis via WinJammerTM. The SIDR must be filed with NFA by 11:59 p.m. on the business day following the 15th and the last business day of each month for information as of the close of the 15th (or the following business day if the 15th falls on a weekend) and the last business day of each month. See the SIDR Statement Due Dates for the list of filing due dates.