January 28, 2020

January 28, 2020

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January 27, 2020

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Proposed Amendments to NFA Bylaw 1301 Regarding the Schedule of Dues and Assessments

On May 21, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission proposed amendments to NFA Bylaw 1301 regarding the schedule of dues and assessments for swaps firms. NFA Bylaw 1301 imposes dues and assessments on futures commission merchants (FCM) (for which NFA is the designated self-regulatory organization (DSRO)), introducing brokers (IB), commodity pool operators (CPO) and commodity trading advisor (CTA) Members that are approved swaps firms under Bylaw 301(l).

In order to fund the regulatory costs associated with NFA Members’ swaps-related activities, NFA’s Board unanimously approved amendments to NFA Bylaw 1301 to impose an annual dues surcharge of $1750 on NFA Members that are approved swaps firms under Bylaw 301(l). This dues surcharge is identical to the one imposed by NFA in 2011 on IB, CPO and CTA Member firms approved as forex firms in order to defray the costs associated with regulating this forex activity.

Pending CFTC approval, NFA intends to make the dues surcharge effective January 1, 2020 for all annual dues payable after that date.

NFA proposed amendments are available here.

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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.


Elise Michael, Katten Law Firm, New York, Finance Law Attorney

Elise Michael represents clients in the financial services industry. Prior to joining Katten, Elise was at J.P. Morgan Chase, where she supported the Private Bank’s advisory and alternatives businesses.

While in law school, Elise was a corporate scholar in the Samuel & Ronnie Heyman Center on Corporate Governance and the managing editor of the Cardozo Arts & Entertainment Law Journal. She also served as an intern with the US Commodity Futures Trading Commission (CFTC).