The CFTC will revise application Form 7-R, for registration as an entity engaged in specified business in the derivatives market. Form 7-R is generally used by CFTC registrants that also are required to become NFA members. Firms that must file Form 7-R include CPOs, CTAs, introducing brokers, floor traders, retail foreign exchange dealers, FCMs, leverage transaction merchants and swap dealers.
Form 7-R will be amended to include:
- new "functionality," which consists of hyperlinks to the text of the relevant provisions of the law;
- certain "clarifying" language where appropriate (e.g., the word "futures" has been replaced with "derivatives" in multiple instances to more accurately reflect the scope of the CFTC's jurisdiction);
- a new requirement for non-U.S. applicants to identify the location of their business records and to indicate that such records will be produced for inspection at NFA offices, or at another physical location (but not a post office box) within the United States;
- a request for additional information about any entity that is a principal of the applicant;
- the inclusion of questions about the disciplinary history of the applicant; and
- a simplified process by which NFA solicits supplemental information and documentation with respect to an applicant's criminal, regulatory and financial disclosures.
Form 7-R previously was used to register with NFA and to apply for NFA membership, but now will be used solely for registration purposes. A separate application will be used for NFA membership. Questions on the Form that concern only NFA membership will be deleted.
The revised version of Form 7-R will be implemented on the date that NFA makes it available on their website.
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