Release Number 8350-21

CFTC Approves NFA’s Swap Dealer Capital Model Review Program

January 13, 2021

— The Commodity Futures Trading Commission’s Market Participants Division through delegated authority has determined the National Futures Association’s (NFA) swap dealer capital model requirements and review program are comparable with the CFTC’s swap dealer capital model requirements and review program. Accordingly, a capital model approved by the NFA will be accepted as an alternative means of compliance with CFTC Regulation 23.102. 

This regulation permits a swap dealer to apply to the CFTC, or to a registered futures association, to obtain approval to use internal market risk and/or credit risk models in computing the swap dealer’s regulatory capital. The regulation further requires the CFTC to determine whether NFA’s model requirements and review process are comparable to those of the agency.    

Swap dealers are required to comply with newly-adopted capital requirements by October 6, 2021.