Housekeeping, Reminders & Updates – November 2017

Written by:

Mark E. Ruddy, Esq.

Maria Fielding

The National Futures Association (“NFA”) Requests Nominations for the NFA’s Board of Directors (“Board”)

The NFA is reaching out to both NFA members and non-members for nominations to fill impending vacancies of Public Representatives serving on its Board. There are currently five Public Representatives whose terms will expire at the Board’s Annual Meeting in February of 2018. Nominees for the position must have no material relationship with the NFA, as the position is designed to bring a needed impartial, non-member perspective to issues. A Public Representative nominee should, however, be knowledgeable of both the markets and who is regulated by the NFA. The position consists of a two-year term and individuals are elected by a Board majority vote. The NFA asks that all nominations be submitted by January 10, 2018 via mail, email, or fax.

The NFA issued Notice to Members I-17-23, which provides further information on the criteria for Public Representative candidates and how to submit nominations.

NFA Releases 2017 Annual Review

The NFA has released its 2017 Annual Review. The Annual Review contains not only the NFA’s 2017 financials but also includes notable initiatives that occurred during 2017. The publication is available in PDF form on the NFA’s website.

NFA Proposed Amendments to “Compliance Rule 2-9: Enhanced Supervisory Requirements”

On November 27, 2017, the NFA submitted proposed amendments to the NFA’s Interpretive Notice “Compliance Rule 2-9: Enhanced Supervisory Requirements,” which were unanimously approved by the NFA’s Board earlier in the month. Notably, the amendments require those who are subject to enhanced supervisory requirements to also maintain electronic written communications with existing and potential customers, in addition to the previous proposal which requires recording all conversations with existing and potential customers. Requirements for written supervisory procedures were also amended to add more mandatory included elements. More details on the amended procedures are found within the proposal.

Commodity Futures Trading Commission (“CFTC”) Releases Annual Enforcement Results for 2017

On November 22, 2017, the CFTC released its annual enforcement results for 2017’s fiscal year, which ended September 30, 2017. The report details not only enforcement actions by category, but also monetary penalties and restitution, and new rules and procedures that were introduced during the fiscal year.

More details on the annual enforcement results can be found within the CFTC Press Release pr7650-17.

For further information about any of the topics covered, please feel free to contact Ruddy Gregory, PLLC (www.ruddylaw.com) or 202-797-0762.