As your industry advocate, the NIBA provides many services which help your business stay in compliance with NFA regulations. “Ask the NFA,” is the way you can ask questions about those regulations and compliance requirements without having to call NFA directly. Just email us at nfacomments@theniba.com and we will get the answers for you. Please keep in mind the purpose of this contact is to keep the lines of communication between the NFA and NIBA members.
This month’s questions were selected from those submitted by NIBA members. The answers were supplied by NFA staff.
If I am executing non-cleared swaps and am given poa in order to facilitate transactions will I eventually have to register as a CTA if I breach a certain threshold?
NFA Registration Rule 101 defines commodity interest to include, among others, any contract, agreement or transaction subject to CFTC regulation under Sections 4c or 19 of the Commodity Exchange Act. Based on this definition, a CTA for swaps has similar registration requirements as a CTA for futures. For additional information surrounding CTA registration requirements, visit the registration section of NFA's website or contact NFA's Information Center (information@nfa.futures.org or 312-781-1410 or 800-621-3570).
Does NFA get involved in the purchase/sale/transfer of a member firm if the transaction is between two member firms? For example is there any regulatory approval required for the sale of a firm?
While there is no requirement that NFA approve a purchase, sale or transfer of a Member firm, NFA will monitor these types of transactions to ensure compliance with NFA rules and CFTC regulations. If a Member firm is considering a purchase/sale/transfer, NFA staff recommends that Members contact NFA to ensure firms understand all compliance and registration requirements.
