NFA Proposes Updates To Guidance On Required Disclosures For Security Futures Contracts

NFA proposed amendments to update previous guidance on risk disclosure statements for security futures contracts ("SFPs").

According to NFA, the proposed amendments would revise Interpretive Notice 9050 ("NFA Compliance Rule 2-30(b): Risk Disclosure Statement for Security Futures Contracts") to align its interpretive notice with recently updated CFTC Rule 41.25 ("Additional conditions for trading for security futures products") (see previous coverage). NFA proposed the amendments to (i) clarify that the SEC and the CFTC allow exchanges to list SFPs on certain debt instruments and (ii) address trading halts.

The proposed amendments will be effective 10 days after receipt by the CFTC.

Primary Sources

1. NFA Proposed Amendments: NFA Interpretive Notice 9050 - NFA Compliance Rule 2-30(b): Risk Disclosure Statement for Security Futures Contracts

Originally published June 1, 2020

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