- within Intellectual Property, International Law, Litigation and Mediation & Arbitration topic(s)
The NFA issued a notice stating that members who take "reasonable steps" to determine the current registration and membership status of previously exempt CPOs and CTAs will not be in violation of NFA Bylaw 1101 or Compliance Rule 2-36(d) which prohibit NFA members from doing business with non-members who are required to be registered with the CFTC. If an NFA member conducts customer business between January 1 and March 31, 2017 with a previously exempt person who fails to become a registered member of the NFA, then according to the notice, the NFA member must contact the non-member promptly to determine whether the latter intends to affirm the exemption by either (i) filing a notice affirming the person's exemption from CPO/CTA registration, or (ii) providing a written representation of why the person is not required to register or file the notice affirming the exemption.
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