NFA Notice to Members I-21-02

In NFA Notice to Members I-21-02, the NFA reminds its Members who claim an exemption from CPO registration must annually affirm the applicable notice of exemption by March 1, 2021.

NFA recognizes that it may be difficult for a Member to conclusively determine prior to that date whether a previously exempt CPO/CTA continues to be eligible for a current exemption. For this reason, Members that take reasonable steps to determine the registration and membership status of these previously exempt persons will not be in violation of NFA Bylaw 1101 or Compliance Rule 2-36(d) if, between January 1 and March 31, 2021, they transact customer business with a previously exempt person that fails to become registered and an NFA Member, file a notice affirming its exemption from CPO/CTA registration, or provide a written representation as to why the person is not required to register or file the notice affirming the exemption.

To identify whether an exempt CPO/CTA has affirmed its exemption, Members should compare their list of exempt CPO/CTAs with which the Member transacts customer business to the information NFA makes available to assist Members in determining whether an exempt CPO/CTA has affirmed its exemption(s).

The entire notice should be reviewed carefully as it contains several other helpful compliance tips. But be aware that the NFA’s notice does not relieve Member regulatory obligations pursuant to the Commodity Exchange Act and the CFTC’s Regulations.