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July 24, 2017
Revised SD and MSP 4s Submission and Review Process
As part of the registration process, each swap dealer and major swap participant (collectively SD) must submit documentation demonstrating the ability to comply with CFTC Regulations Implementing Section 4s of the Commodity Exchange Act (4s documentation). To streamline the 4s review process, NFA is implementing the following modifications.
Effective immediately, each SD will no longer be required to submit 4s documentation for any 4s topic area (except for certain documentation related to an SD's risk management program), and NFA will not issue Feedback Letters. Rather, an SD will satisfy the requirement that it demonstrate compliance with each section 4s implementing regulation by submitting an attestation that the SD has adopted policies and procedures or other appropriate documentation reasonably designed to ensure that the SD is in compliance with the CFTC Regulations. In effect, the attestation will constitute the 4s documentation that is required to be submitted pursuant to CFTC Regulation 3.10(a)(v)(A).
Under this new approach, once the CFTC adopts final rules for the remaining 4s topic areas, each provisionally registered SD will be able to obtain full registration, absent other circumstances, by submitting the required attestation for each remaining 4s topic area.
Although SDs will no longer be required to submit policies and procedures, NFA will continue to review an SD's policies and procedures as part of the examination or other regulatory oversight process.
Procedures for Filing 4s Attestations Rather Than Submitting 4s Documentation
For the remaining 4s topics that do not yet have active 4s filings (i.e., NFA has not yet issued a Feedback Letter), NFA's EasyFile Registration Documentation Submission System (RDSS) will issue a request to complete the attestation provided, which states that the SD has adopted written policies and procedures or other appropriate documentation reasonably designed to ensure that the SD is in compliance with the applicable Section 4s Implementing Regulation. Once the signed attestation is filed, NFA will issue an Acknowledgement Letter through RDSS informing the SD that NFA received the firm's attestation and has no further inquiry regarding the 4s topic area at that time.
However, for the Risk Management 4s topic area, new SD applicants will be required to submit both an attestation and its risk management policies and procedures as required by CFTC Regulation 23.600(b)(4).
Deadline for Filing 4s Attestations
An SD that does not submit an attestation by the deadline specified in the attestation request must notify NFA and detail the reason for the late attestation filing and a projected time frame for submitting the attestation. NFA will notify CFTC staff of any failures to provide the attestation by the date required.
Information regarding active 4s Feedback Letters
For 4s topic areas where an SD has received a 4s Feedback Letter (i.e., NFA has not issued an Acknowledgement Letter), the SD should follow the instructions in the Feedback Letter. See Notice to Members I-16-01 for further details.
If you have any questions concerning these changes, please contact NFA's Information Center (312-781-1410 or 800-621-3570 or firstname.lastname@example.org).