NFA Updates FCM Reporting Requirements

NFA Updates FCM Reporting Requirements

On Sept. 17 National Futures Association issued a notice advising members that futures commission merchants are now required to file Risk Exposure Reports on a quarterly basis and Chief Compliance Officer Reports on an annual basis with NFA.

National Futures Associations | Margins Handbook

Margin Handbook

skyThe Joint Audit Committee (JAC) is a representative committee of U.S. futuresexchanges and regulatory organizations which participate in a joint audit andfinancial surveillance program that has been approved and is overseen by the Commodity Futures Trading Commission. The purpose of the joint program is to coordinate among the participants numerous audit and financial surveillance procedures over registered futures industry entities. Each registered futures entity is assigned a “Designated” Self-Regulatory Organization, known as the DSRO, which is responsible for, among other things, conducting periodic audits of that entity and sharing any and all information with the other regulatory bodies of which the firm is a member. The result of the coordinated audit and surveillance effort is an effective and efficient regulatory forum. By standardizing the audit function and avoiding duplication, the JAC has streamlined the regulation necessary to assure the best interests of market participants.

The JAC’s objectives in creating this handbook are to establish sound policies for monitoring margin risk exposure and to improve operational efficiency.

Consistent treatment of these policies across all exchanges is beneficial to both market participants and regulators. Through an improved understanding and application of margin policies, this handbook strives to strengthen the financial protection margin is intended to provide.

The JAC will periodically update this handbook to account for material changes. Subsequent editions will be available through the Web sites of the various exchanges and National Futures Association (NFA). Each FCM will receive a notice of any material change and will be instructed to download the new edition from the applicable Web site.

NFA Regulatory Requirements | For FCMs, IBs, CPOs, and CTAs

  NFA Regulatory Requirements 


Content

General Regulatory Requirements

Basic Records

Customer Statements

Customer Orders

Operations and Activities of IBs

Position Limits

Reportable Positions

Doing Business with Non-Members

Customer Information and Risk Disclosure

Anti-Money Laundering Program

Privacy Rules

Customer Protection

Discretionary Accounts

Disclosure of Costs Associated with Futures Transactions

Ethics Training

Business Continuity and Disaster Recovery Planning

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