ARTICLE
25 March 2019

CFTC To Revise NFA-Related Registration Form

CW
Cadwalader, Wickersham & Taft LLP

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Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
The CFTC will revise application Form 7-R, for registration as an entity engaged in specified business in the derivatives market.
United States Finance and Banking

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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