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NFA Adopts 4s Attestation Process for Swap Dealers and Major Swap Participants

National Futures Association (NFA) has revised the process by which each swap dealer (SD) and major swap participant (MSP) applicant demonstrates its ability to comply with Commodity Futures Trading Commission regulations implementing Section 4s of the Commodity Exchange Act (4s Regulations), including but not limited to regulations relating to capital and margin requirements, reporting and recordkeeping and business conduct standards. Effective immediately, applicants will demonstrate compliance with each 4s Regulation by submitting an attestation that the applicant has adopted policies and procedures or other appropriate documentation reasonably designed to ensure that the applicant is in compliance with the 4s Regulation.

This 4s attestation process replaces the current, more onerous, process under which each applicant must submit its actual 4s policies and procedures to the NFA for substantive review and feedback. However, if a current applicant already has received an NFA feedback letter on one or more topic areas, the applicant should follow the instructions in the feedback letter.

Finally, prospective applicants also should be aware that, with respect to 4s Regulations relating to risk management, each applicant will be required to submit both an attestation and risk management policies and procedures as required by CFTC Regulation 23.600(b)(4).

More information is available here.

©2019 Katten Muchin Rosenman LLP


About this Author

Guy Dempsey Jr., Bank Regulations Legal Specialist, Katten Muchin

Guy C. Dempsey Jr. concentrates his practice on derivatives and structured products and on bank regulation. He advises clients on derivatives transactions of all types across all asset classes, as well as on the corporate governance, regulatory, collateral, compliance, insolvency and litigation issues associated with such products.

Much of Guy’s work involves helping bank and non-bank clients analyze the details and impact of the Dodd-Frank Act. He maintains deep knowledge of the banking laws and regulations relating to capital markets activities....

James M. Brady, Katten Muchin Law Firm, Finance Attorney

James Brady concentrates his practice in financial services matters.

While in law school, James was an editor of the Michigan Journal of International Law. He also served as a judicial intern to the Honorable Stephen J. Markman of the Michigan Supreme Court. http://www.kattenlaw.com/James-Brady