NFA Publishes Interpretive Notice On Swap Valuation Disputes

The National Futures Association ("NFA") announced CFTC approval of NFA's Interpretive Notice (the "Notice") on NFA Compliance Rule 2-49 (see previous coverage). The Notice outlines the type of "valuation" disputes that the NFA will require to be reported pursuant to CFTC Rule 23.502(c) and NFA's compliance rule. The Notice provides additional guidance regarding requirements for amending and updating reports that have been previously submitted. The NFA announcement specifies the compliance date for the Notice and the specific data fields that will need to be included in reports.

In January 2016, the CFTC issued an order authorizing the NFA to receive and review notices of valuation disputes that swap dealers and major swap participants are required to file under CFTC Rule 23.502(c). The NFA Notice explains that the rule requires the NFA to inform members that it will require them to submit electronic reports of disputes related to the following (provided the