Search NFA Rulebook
Search This Rule
Tuesday, August 31, 2021 - Amended Financial Requirement Section 18 - Swap Dealer and Major Swap Participant Financial Requirements. An explanation of the amended financial requirement can be found in the August 31, 2021 rule submission letter.
Part 2 - Rules Governing the Business Conduct of Members Registered with the Commission
RULE 2-10. RECORDKEEPING.
[Effective date of amendments: April 11, 1983; April 1, 2006; July 1, 2007; October 1, 2011; June 17, 2013 and July 1, 2019.]
(a) Each Member shall maintain adequate books and records necessary and appropriate to conduct its business including, without limitation, the records required to be kept under CFTC Regulations 1.18, 1.32 through 1.37, and 1.71 for the period required under CFTC Regulation 1.31.
(b) Each FCM Member and Forex Dealer Member must:
(1) Maintain an office in the continental United States, Alaska, Hawaii, or Puerto Rico responsible for preparing and maintaining financial and other records and reports required by CFTC and/or NFA rules under the supervision of a listed principal and registered associated person of the FCM or Forex Dealer Member who is resident in that office; or
(2) If an FCM, maintains an office in a jurisdiction that the CFTC has found to have a comparable regulatory scheme for purposes of Part 30 of the CFTC's rules and be subject to that regulatory scheme. This foreign office must be responsible for preparing and maintaining financial and other records and reports required by CFTC and/or NFA rules under the supervision of a listed principal and registered associated person of the FCM who is resident in that office, and the Member must agree to reimburse NFA for any travel, translation, telephone, and similar expenses incurred in connection with inquiries, examinations and investigations of the Member that exceed the normal expenses incurred by NFA in examining an FCM Member located at the closest point in the continental United States, Alaska, Hawaii, or Puerto Rico.
(c) Each Member subject to minimum capital requirements must:
(1) prepare financial reports required to be filed with the CFTC and/or NFA in English, using U.S. dollars, and according to U.S. accounting standards; and
(2) maintain a general ledger in English using U.S. dollars.
(d) Each CPO, CTA, FCM, FDM, IB, MSP and SD Member must:
(1) file reports, requests for extensions, and other documents required to be filed with the CFTC and/or NFA in English;
(2) maintain English translations of all foreign-language promotional material, including disclosure documents and Web sites, distributed to or intended for viewing by customers located in the United States, its territories, or possessions;
(3) maintain written procedures required by CFTC or NFA rules in English (as well as in any other language if necessary for them to be understood by the Member's employees and agents);
(4) provide English translations of other foreign-language documents and records and file financial information in U.S. dollars when requested by NFA; and
(5) make available to NFA (during an examination or to respond to other inquiries) an individual who is authorized to act on the Member's behalf, is fluent in English, and is knowledgeable about the Member's business and about financial matters.