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June 30, 2017
Important request for CTAs using the CFTC's third-party recordkeeping relief
On April 20, 2017, the CFTC's Division of Swap Dealer and Intermediary Oversight (DSIO) issued Exemptive Letter No. 17-24, which provides relief to registered commodity trading advisors (CTA) from the requirement of CFTC Regulations 4.33 and 4.7(c)(2) that books and records must be kept at the CTA's main business office. Relief under this notice is not self-executing. A CTA that uses a third-party recordkeeper must file a notice of claim with the CFTC following the procedures set forth in CFTC Exemptive Letter No.17-24.
In order to ensure that NFA's records are accurate, any CTA that files a notice of claim pursuant to CFTC Letter No. 17-24 must notify NFA by accessing NFA's Exemptions System. Please follow these instructions:
- Access NFA's Exemptions System and select File an Exemption as a Registrant.
- Enter ORS ID and password to login.
- From the Exemption Index, select the File/Withdraw Exemption link in the Firm Exemptions section.
- From the Firm Exemption Management screen, click on the drop down menu next to Select Exemption under File Firm Exemption and select 4.7(c)(2) or 4.33 exemption, whichever is applicable. Please note that a CTA must have previously filed a 4.7 exemption in order to file a 4.7(c)(2) exemption.
- A template will display in order to enter information about the CTA's third-party recordkeeper. Click Add New above the grid.
- Enter the name of the alternate recordkeeper.
- Click Continue. A search will be performed of the recordkeeper. If the recordkeeper exists in NFA's database, select the entity. If the recordkeeper does not appear, click "I do not see alternate recordkeeper(s)" and enter all requested information. Once all information is entered, click Save & Close.
- Repeat steps 5 through 7 until all recordkeepers have been entered.
- Submit the information by clicking on the Submit button at the bottom of the Exemption template.
- Upon submission of this information, the exemption will be reflected under the Active Exemption Information section on the Firm Exemption Management screen.
If you have any questions, please contact Mary McHenry, Associate Director, Compliance (email@example.com or 312-781-1420) or Susan Koprowski, Senior Manager (firstname.lastname@example.org or 312-781-1288).