Release: #4735-03
For Release: January 9, 2003

CFTC Division of Clearing and Intermediary Oversight Announces Authorization of New NFA Responsibilities

WASHINGTON, D.C.-- In a move that enables the Commodity Futures Trading Commission (CFTC) to become a more efficient oversight regulator, the Commission announced today that it has authorized 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 organization for the futures industry.

The authorization applies to all commodity pool annual financial reports for fiscal years ending on December 31, 2002 and later. According to the Commission’s Order, NFA will serve as the official custodian of these records. In addition, as part of this authorization the CFTC and NFA are working together to enhance technology that will provide the CFTC with immediate electronic access to NFA’s database containing such relevant information.

This move comes as part of the Commission’s mission to delegate more of its routine frontline regulatory functions, a measure encouraged by the Commodity Futures Modernization Act (CFMA) and aimed at developing a more efficient and effective regulatory environment.

“This action is yet another example of my personal commitment to ensuring the CFTC becomes a more effective regulator as the futures industry continues to evolve and grow in this rapidly changing marketplace,” said CFTC Chairman James Newsome. “We are better positioned to respond to these changes by authorizing 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.”

The Commission previously has authorized NFA to perform certain regulatory functions that were conducted by Commission staff. Such prior delegated functions include: 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 advisors (CTAs); and the review of Disclosure Documents required to be filed by CPOs and CTAs pursuant to Commission rules.

Copies of the Commission’s Order can be obtained by contacting the Office of the Secretariat, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, N.W., Washington, DC 20581, (202) 418-5100 or by accessing the Commission’s website,

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