Notices to Members

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Notice I-21-32

September 23, 2021

Effective date for amendments regarding mandatory clearing and trade execution requirements for SDs

NFA Compliance Rule 2-49 provides that any NFA swap dealer (SD) Member that violates CFTC Regulation 3.3 or any Part 23 Regulation is deemed to have violated an NFA requirement. Compliance Rule 2-49 also provides NFA with authority to oversee and enforce SD Member compliance with these requirements. While most SD-related CFTC requirements are contained in CFTC Regulation 3.3 and the Part 23 Regulations, NFA also oversees SD Member compliance with the mandatory trade execution requirement under CFTC Regulation 37.121 and the mandatory clearing requirements in Part 50. Therefore, NFA has amended Compliance Rule 2-49 to provide that any SD Member that violates CFTC Regulation 37.12 or the Part 50 Regulations will be deemed to have also violated an NFA requirement. This amendment will become effective on September 30, 2021.

NFA's Swap Participant Advisory Committee fully supported the proposed amendment to Compliance Rule 2-49, which was unanimously approved by NFA's Board of Directors.

NFA's August 31, 2021 submission letter to the CFTC contains more detailed information regarding these amendments. If you have any questions about these amendments, please contact Shuna Awong, Director, OTC Derivatives (sawong@nfa.futures.org or 212-513-6057) or Tammy Wong, Associate Director, OTC Derivatives (twong@nfa.futures.org or 212-513-6061).


1NFA has not included reference to the mandatory trade execution requirement regarding DCMs under CFTC Regulation 38.12 since no DCMs currently offer swaps for execution.

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