For Release: February 11, 2009
CFTC’s Division of Market Oversight Issues Advisory Regarding Recordkeeping Requirements
Washington, D.C. — The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) has issued an Advisory regarding the recordkeeping requirements of CFTC Regulations 1.31 and 1.35.
DMO’s Advisory, which applies to futures commission merchants (FCMs), introducing brokers (IBs), and members of designated contract markets (DCMs), arose from apparent confusion in the industry as to the recordkeeping requirements applicable to electronically conveyed records, including instant messages and emails.
As explained in today’s Advisory, the CFTC’s recordkeeping requirements “apply to records that are created or retained in an electronic format, including email, instant messages, and other forms of communication created or transmitted electronically for all trading.” FCMs, IBs, and members of DCMs are reminded that they must maintain the electronic records noted above in accordance with CFTC Regulations 1.31 and 1.35.
About this Advisory, CFTC Acting Chairman Michael V. Dunn stated, “In our current regulatory environment it is imperative for the Commission’s consumer protection efforts that electronic records are preserved and available for review if needed.”
The Advisory also summarizes how Regulations 1.31 and 1.35 work in tandem. Regulation 1.31 requires that all books and records required to be kept under the Commodity Exchange Act and CFTC Regulations be kept for five years and be readily accessible during the first two years, and Regulation 1.35, in turn, requires that FCMs, IBs, and DCM members keep certain records, data, and memoranda in accordance with Regulation 1.31.
R. David Gary
Last Updated: February 11, 2009