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NFA recently repealed Interpretive Notice 9071 entitled Compliance Rule 2-46: Reporting Financial Information on NFA Forms PQR and PR to reduce the reporting burden on commodity pool operator (CPO) and commodity trading adviser (CTA) Members. The repeal is effective immediately.
Before its repeal, Interpretive Notice 9071 required CPOs and CTAs to report certain financial ratios related to the Member's financial condition to NFA on a quarterly basis. When NFA first adopted the Interpretive Notice, NFA believed the financial ratios could inform exam priorities by identifying firms with financial difficulties that might impair their ability to operate in customers' best interests. However, NFA has found that the financial ratios have not been particularly useful in identifying problematic firms.
Further, since adopting the Interpretive Notice, NFA now requires CPO Members to submit other financial information (i.e., NFA Compliance Rule 2-50) to NFA that has proven far more critical in monitoring the financial health of commodity pools.
NFA's March 3, 2026, rule submission letter to the CFTC contains more details concerning the repeal, which was unanimously approved by NFA's Board of Directors.
If you have any questions regarding the repeal, please contact NFA's Information Center (information@nfa.futures.org or 800-621-3570 or 312-781-1410).
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