Commodity Futures Trading Commission (CFTC) Adopts Final Rules for Ownership and Control Reports
On October 30, the Commodity Futures Trading Commission approved final rules that implement position and trading activity based reporting requirements for market participants that trade futures and swaps. The final rules modify the existing Form 102 and 102S (Identification of “Special Accounts”) and Form 40 (Statement of Reporting Trader) and implement two new forms that will be used to identify and collect information related to accounts that exceed a specified daily trading volume. Under the final rules, these reports will be submitted to the CFTC electronically.
Form 102A (revised Form 102) requires clearing members to identify special accounts (as defined in Part 15 of the CFTC Regulations) as well as the underlying trading accounts. Form 102S has been updated and will continue to be used to collect information related to certain categories of swaps. Form 102B is a new form that will be used by clearing members and certain reporting markets to identify accounts with daily trading volumes that exceed a specified level regardless of whether the accounts maintain positions at the end of the day. Form 71 is a new form that will be sent pursuant to a special call to identify the ultimate owners and controllers of omnibus accounts that exceed specified trading volumes.
Revised Form 40 must be submitted to the CFTC upon receipt of a special call; however, each reporting trader that is required to complete a Form 40 will be under a continuing obligation to update and maintain the accuracy of the information it provides. The compliance date for the final rule will be 270 days after publication in the Federal Register.
The final rules are available here.