Notices to Members

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Notice I-17-27

December 06, 2017

Additional reporting requirements regarding virtual currency futures products for FCMs for which NFA is the DSRO

This Notice was issued to FCM Members for which NFA is the DSRO.

A number of CFTC regulated futures exchanges have announced plans to offer futures contracts on virtual currency products, including Bitcoin. Given the volatility in the underlying virtual currency products, NFA is requiring each FCM for which NFA is the DSRO to immediately notify NFA if the firm decides to offer its customers or non-customers the ability to trade any virtual currency futures product. This is an ongoing obligation—any FCM that does not currently intend to offer such products must notify NFA if it begins offering these products. FCMs should email this notification to their NFA examination manager.

Additionally, beginning Tuesday, December 12, NFA is requiring FCMs for which NFA is the DSRO to report certain information regarding virtual currency futures contracts on their daily segregation report filed through Winjammer™. This information should be based on the information as of the prior business day and includes the following:

  • Number of customers who traded a virtual currency futures contract (including closed out positions).
  • Number of non-customers who traded a virtual currency futures contract (including closed out positions).
  • Gross open virtual currency futures positions (i.e., total open long positions, total open short positions).

An FCM should report zero if it does not offer these products or if none of its customers or non-customers have traded a virtual currency futures contract.

If you have any questions on these new requirements please contact Dale Spoljaric, Managing Director, Compliance (dspoljaric@nfa.futures.org or 312-781-7415) or Mark Kloet, Manager, Compliance (mkloet@nfa.futures.org or 312-781-7896).

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