Notices to Members

September 12, 2019

NFA updates FAQs related to Swaps Proficiency Requirements

In March 2019, NFA issued Notice to Members I-19-09 regarding NFA's Swaps Proficiency Requirements. Individuals registered as associated persons (AP) at futures commission merchants (FCM), introducing brokers (IB), commodity pool operators (CPO) and commodity trading advisors (CTA) who engage in swaps activity subject to the CFTC's jurisdiction as well as individuals acting as APs at swap dealers (SD) (with limited exceptions) are subject to NFA's Swaps Proficiency Requirements.

Individuals can begin satisfying the Swaps Proficiency Requirements on the January 31, 2020 effective date, and have an entire year to complete these requirements. Any individual who does not satisfy the requirements within that time frame will no longer be an approved swap AP at an FCM, IB, CPO or CTA or be permitted to act as an AP at an SD. After the January 31, 2021 compliance date, an individual must satisfy these requirements prior to acting as an AP at an SD or being approved as a swap AP at an FCM, IB, CPO or CTA.

To help Members understand their regulatory obligation related to these requirements, NFA recently updated its Swaps Proficiency Requirements Frequently Asked Questions based on Member questions to date. NFA will continue to educate Members on these requirements throughout the next 12 to 18 months.

If you have any questions regarding NFA's Swaps Proficiency Requirements, please contact NFA's Information Center (800-621-3570 or information@nfa.futures.org).