CFTC announces authorisation of NFA responsibilities

The US Commodity Futures Trading Commission (CFTC) Division of Clearing and Intermediary Oversight yesterday authorised the National Futures Association (NFA) to conduct reviews of annual financial reports filed with the Commission by commodity pool operators (CPOs). The NFA is the self-regulatory organisation for the US futures industry.

The move comes as part of the CFTC’s mission to delegate more of its routine regulatory functions, a measure encouraged by the Commodity Futures Modernization Act (CFMA), the CFTC said. The authorisation applies to all commodity pool annual financial reports for fiscal years ending December 31, 2002 and later.

“We are better positioned to respond to these changes by authorising NFA to perform such functions, enabling Commission staff to focus on new regulatory issues and making the Commission more efficient in carrying out its regulatory responsibilities,” said CFTC chairman James Newsome.

Previously, the CFTC had allowed the NFA to perform certain regulatory functions that were conducted by Commission staff. Delegated functions included: the processing of applications for registration of intermediaries and floor traders under the Commodity Exchange Act; the processing of notices of eligibility for certain exemptions for CPOs and commodity trading advisers (CTAs); and the review of disclosure documents required to be filed by CPOs and CTAs.