NFA adopted rules establishing minimum capital requirements for member swap dealers ("SDs") that are not prudentially regulated. NFA also issued a related interpretive notice.
As previously covered, the new NFA requirements largely mirror the CFTC's SDs capital requirements under CFTC Rule 23.101, which imposes minimum capital and financial reporting requirements for SDs not subject to the rules of a prudential regulator. The NFA provided additional requirements concerning subordinated debt agreements and certain financial reporting and recordkeeping requirements.
The NFA rules go into effect on October 6, 2021, coinciding with the compliance date of the new CFTC rules.
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.
