NFA Adopts Swaps Associated Person Proficiency Requirements

March 18, 2019

On March 5, 2019, the National Futures Association submitted to the Commodity Futures Trading Commission amendments to NFA Bylaw 301 and NFA Compliance Rule 2-24 and an associated Interpretative Notice, which will require certain associated persons of NFA member futures commission merchants, introducing brokers, commodity pool operators, and commodity trading advisors engaged in swaps activity, as well as APs of swap dealers and major swap participants, to satisfy swap proficiency requirements.

The purpose of the Swap Proficiency Requirements is to ensure that APs engaged in swaps activities meet a minimum proficiency standard that tests both their market knowledge and their knowledge of regulatory requirements relating to swaps activities. The Amendments do not, however, require APs of SDs or MSPs to register with NFA. The NFA has indicated it intends to make the Amendments effective beginning January 31, 2020 with a compliance date of January 31, 2021. The following Memorandum provides a brief overview of the Amendments and identifies key issues raised by the Amendments.