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NFA Releases Notice Regarding Swap Valuation Dispute Filing Process

On September 6, the National Futures Association (NFA) sent a notice to its members with information regarding the Interpretive Notice to NFA Compliance Rule 2-49. NFA Compliance Rule 2-49 requires swap dealers and major swap participants (collectively, SDs) to promptly submit relevant information to the NFA in the form and manner prescribed by NFA. The Interpretive Notice, which went into effect on January 2, describes the swap valuation disputes that require notice and the information required to be reported. Further, if a reportable swap valuation dispute involves two SD counterparties, each SD must file a separate dispute notice with the NFA.

The NFA has noticed instances where a swap valuation dispute that involved two SD counterparties was filed by only one SD. The Notice reminds SDs that both SD counterparties must submit a swap valuation dispute report when it involves two SD counterparties. Furthermore, the Notice specifies that, in the event that the NFA receives a swap valuation dispute notice from only one SD, the NFA will provide limited information regarding the swap valuation dispute to the non-reporting SD to facilitate the non-reporting SD’s swap valuation dispute submission process.

The Interpretive Notice is available here.

©2020 Katten Muchin Rosenman LLP


About this Author

Kevin M. Foley, Finance Lawyer, Katten Llaw Firm

Kevin M. Foley has extensive experience in commodities law and advises a wide range of clients, both in the United States and abroad, on compliance with the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission (CFTC) affecting traditional exchange-traded products, as well as the over-the-counter markets involving swaps and other derivative instruments. His clients include futures commission merchants, derivatives clearing organizations, designated contract markets, foreign boards of trade and an industry trade association.


Gregory Uffner, Financial Services Attorney, Katten Law Firm

Gregory Uffner is an associate in the Financial Services practice. 

While in law school, Gregory was an associate editor for the Moot Court Board, a member of the Fordham Urban Law Journal and served as managing editor for the Fordham Sports Law Forum.