Commodity Futures Trading Commission Proposes Amendments To Registration Rules To Accommodate Online Registration

The Commodity Futures Trading Commission (Commission) is proposing amendments to Part 3 of its rules, which governs registration of intermediaries in the futures industry. These amendments are necessary to facilitate the change from the current paper-based registration system to online registration, which the National Futures Association (NFA) expects to implement in June. The online registration system should provide applicants with a more streamlined process for registering, resulting in less redundancy and quicker processing of applications by NFA.

Among other things, the proposed amendments would permit a floor broker that receives a temporary license to act in the capacity of a fully registered floor broker. Currently, a floor broker with a temporary license may act only in the capacity of a floor trader. The amendments would also permit an applicant for registration as an associated person to be granted a temporary license upon filing of a Form 8-R and a sponsor's certification. Additionally, the amendments would eliminate the requirement that futures commission merchants and independent introducing brokers requesting withdrawal from registration provide financial statements for the month prior to such a request.

The proposed rule amendments are being published in the Federal Register for a 30-day comment period. Copies of the proposal can be obtained by contacting the Office of the Secretariat, Three Lafayette Centre, 1155, 21st Street, N.W., Washington, DC 20581, (202) 418-5100 or by accessing the Commodity Futures Trading Commission website.