CFTC Requires Introducing Brokers, Commodity Pool Operators, And Most Commodity Trading Advisors That Use Swaps To Become Members Of NFA

On September 14, 2015, the Commodity Futures Trading Commission (CFTC) published a final rule requiring introducing brokers (IBs), commodity pool operators (CPOs), and most commodity trading advisors (CTAs) to become members of a registered futures association (RFA).

A limited exception to this requirement applies to CTAs that qualify for an exemption from registration under CFTC Regulation 4.14(a)(9) (i.e., those who do not direct client accounts or provide advice tailored to a particular client) but who nonetheless chose to register.  All persons subject to the regulation will be required to become members of the National Futures Association (NFA), the only RFA, by December 31, 2015.  To comply with the requirement, each registered IB, CPO, and CTA (subject to the limited exception for CTAs) must update its existing registration forms on NFA's online registration system and pay initial and NFA annual membership dues.