Does NFA carry out CFTC registration for swap dealers?
The Commodity Exchange Act (CEA) requires certain firms and individuals that conduct business in the derivatives industry to register with the CFTC. CFTC regulations also require, with few exceptions, CFTC registered firms to be NFA Members. The CFTC has delegated registration responsibility to NFA.
Does a swap data repository need to be registered with the NFA?
Under the Dodd- Frank Act, all swaps, whether cleared or uncleared, are required to be reported to registered SDRs. SDRs are required to register with the CFTC and comply with rules promulgated by the CFTC, including real-time public reporting of swap transaction and pricing data.
Is a swap execution facility an NFA member?
The Dodd-Frank Wall Street Reform Act created a new type of trading venue for standardized swaps—swap execution facilities (SEF)—each of which has self-regulatory responsibilities to monitor trading on its platform. The CFTC’s SEF rules allowed these entities to contract with NFA for regulatory services.
Does NFA carry out CFTC registration?
The CFTC has delegated registration responsibility to NFA. All futures professionals required to register with the CFTC are granted registration only after a thorough investigation of their background to determine if they meet the fitness standards set forth in the CEA.
Can NFA bring disciplinary proceedings?
NFA has the authority to take disciplinary actions against any Member or Associate that violates its rules. If an NFA Member or Associate engages in conduct that puts customers, the futures markets, or other Members at risk, immediate action will be taken accordingly.
What is the difference between NFA and CFTC?
NFA is the sole registered futures association. The CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO) is the CFTC component charged with oversight of NFA and its duties. NFA works very closely with the CFTC in all of its activities.
What is a registered swap dealer?
A swap dealer (SD) is an entity that holds itself out as a dealer in swaps; makes a market in swaps; regularly enters into swaps with counterparties as an ordinary course of business for its own account; or engages in any activity causing the entity to be commonly known in the trade as a dealer or market maker in swaps …
Who needs to register as a swap dealer?
Every swap dealer and MSP must register as such with the appropriate regulator under rules required to be promulgated within one year of enactment of the Act. Dual registration is required for swap dealers or major swap participants engaging in both swap and security-based swap transactions.
Who can trade a swap on a swap execution facility?
Section 5h(a)(1) of the Act provides that any person who offers a trading system or platform in which more than one market participant has the ability to execute or trade swaps with more than one other market participant on the system or platform must apply to the Commission to register as a SEF or be designated as a …
Who are required to be NFA members?
All registered FCMs, RFEDs, IBs, SDs, MSPs, CPOs and those registered CTAs who direct client accounts or provide tailored investment advice must be NFA Members.
What is the difference between CFTC and NFA?
When Congress created the CFTC, it simultaneously authorized the CFTC to establish registered futures associations with authority to regulate the practices of its Members. NFA is the sole registered futures association. NFA works very closely with the CFTC in all of its activities.
Does NFA has regulatory authority over security based swaps?
NFA provides regulatory services to designated contract markets (DCM) and swap execution facilities (SEF)—each of which has self-regulatory responsibilities to monitor trading on its platform.
When do swap firms have to register with NFA?
Firms that meet the above criteria are required to register once the gross notional amount of their swap dealing activity exceeds the de minimis threshold, currently $8 billion, over a twelve month period. Regulatory information for SDs is available on NFA’s website.
When do AP’s have to register for swaps?
An AP of an SD must complete NFA’s Swaps Proficiency Requirements by the January 31, 2021 Compliance Date. See Registration Information for Swap Dealers and Major Swaps Participants for more information.
How much does it cost to register with NFA?
Once NFA receives the completed Form 7-R application (and required Forms 8-R), the application fee of $15,000 and facially reviews 4s documentation, NFA will notify the applicant that it is provisionally registered. See the registration process for SDs and MSPs for more information.
What does it mean to be a swap dealer?
A swap dealer (SD) is an entity that holds itself out as a dealer in swaps; makes a market in swaps; regularly enters into swaps with counterparties as an ordinary course of business for its own account; or engages in any activity causing the entity to be commonly known in the trade as a dealer or market maker in swaps.