Notices to Members

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Notice I-20-06

February 10, 2020

Educational resources, common deficiencies and other important regulatory information for SD Members

NFA is committed to providing its Members with the resources they need to meet their regulatory obligations as efficiently as possible. This Notice covers educational resources, common deficiencies and links to Notices to Members regarding recent amendments to NFA Rules and Interpretive Notices.

Member Regulatory Workshops

NFA will hold Member regulatory workshops in New York on February 25 and London on March 4. During the workshops, CFTC staff, NFA Board members and NFA staff will discuss recent NFA initiatives, cybersecurity developments and information covered in this Notice, among other topics. Click here to register.

Members Section of NFA's Website

From the Members section of NFA's website, swap dealer (SD) Members can access information detailing their regulatory obligations including the following:

Common Deficiencies

The following section describes a number of regulatory obligations related to common deficiencies noted during NFA examinations.

Supervision: Pursuant to NFA Compliance Rule 2-9, SD Members are required to diligently supervise their employees and agents in all aspects of their swap activities. All SD Members are required to develop and implement written supervisory procedures designed to achieve ongoing compliance with applicable NFA and CFTC requirements.

Business Conduct Standards: SD Members are required to obtain and retain a record of essential facts to accurately categorize its counterparties to facilitate compliance with various regulatory requirements pursuant to CFTC Regulation 23.402(a). The failure to properly identify and classify counterparties may result in non-compliance with other transaction-specific requirements. Additionally, SD Members are required to make several disclosures to non-SD counterparties, including, but not limited to pre-trade mid-market marks, material risks and characteristics of each particular swap and daily marks. Lastly, SD Members are required to implement controls to prevent fraud, manipulation, and other abusive practices prohibited by CFTC Regulation 23.410.

Swap Data Reporting: SD Members must report swap transaction data to swap data repositories pursuant CFTC Regulation 23.204 and CFTC Regulation 23.205. Additionally, they must report corrections of identified errors or omissions as soon as technologically practicable after discovery.

Cybersecurity: SD Members must adopt a written information systems security program (ISSP) to address the risk of unauthorized access to or attack of their information technology systems and to respond appropriately should unauthorized attacks occur. Changes to Interpretive Notice 9070, which became effective April 1, 2019, require firms to notify NFA of certain cybersecurity incidents related to their commodity interest business and also clarify that cybersecurity training must be provided to employees upon hiring and at least annually thereafter.

Recent Amendments

I-19-14: Effective date for amendments to incorporate swaps supervision requirements and make technical changes to certain NFA Rules and Interpretive Notices

I-19-12: Effective date for amendments to incorporate swaps into certain Compliance Rules and Interpretive Notices

I-19-11: Reminder: Filing requirements for swap valuation dispute notices under NFA Compliance Rule 2-49 apply to all swap dealer Members

I-19-09: NFA amends Rules and adopts Interpretive Notice implementing Swaps Proficiency Requirements

I-19-01: NFA amends Interpretive Notice regarding information systems security programs – cybersecurity

Contact NFA

If you need assistance with any NFA requirements, please contact NFA's Information Center (312-781-1410 or 800-621-3570 or

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