NFA highlighted certain regulatory obligations and available educational resources for (i) CPO/CTAs, (ii) swap dealers ("SDs"), and (iii) futures commission merchants ("FCMs"), forex dealer members ("FDMs") and introducing brokers ("IBs").
In several Notices, NFA identified the regulatory obligations for each type of NFA member, based off of common deficiencies during examinations.
- CPO/CTA. In Notice I-20-05, NFA stated that CPO/CTAs must (i) adopt written information systems security programs aimed at mitigating risks such as attacks to their information technology systems, (ii) implement supervisory procedures by creating internal control systems, (iii) complete NFA's Self-Examination Questionnaire to assess their internal operations, (iv) provide written notices to pool participants within 90 days of a pool's formation if it elects a fiscal year end other than a calendar year end for financial reporting purposes, and (v) use the accrual method of accounting to calculate financial ratios.
- SDs. In Notice I-20-06, NFA stated that SDs must (i) exercise "diligent[]" supervision of staff throughout all aspects of their swap activities, (ii) accurately categorize counterparties by collecting records of essential facts, (iii) report swap transaction data to swap data repositories and (iv) establish a written information system security program (a/k/a "written ISSP") to be equipped to handle unauthorized access or attacks on information technology systems.
- FCMs, FDMs and IBs. In Notice I-20-07, NFA stated that FCMs, FDMs and IBs must (i) "diligently" supervise staff in all aspects of their commodity interest activities on behalf of the member, (ii) review on an annual basis their operations using NFA's Self-Examination Questionnaire, (iii) establish a written ISSP to address unauthorized cybersecurity attacks and (iv) implement AML programs to ensure ongoing customer due diligence and verification of beneficial owners. Separately, NFA stated that an FCM must transmit a notice filing to NFA through WinJammer under certain circumstances (such as if it becomes the subject of a formal investigation or if the adequacy of its capital position is questioned).
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