On February 2, National Futures Association (NFA) issued Notice I-16-07, which implements an order previously issued by the Commodity Futures Trading Commission authorizing NFA to receive notices of swap valuation disputes exceeding $20 million required to be filed with the CFTC by swap dealers (SDs) and major swap participants (MSPs) pursuant to CFTC Regulation 23.502(c). Effective March 1, NFA will receive and maintain such notices and then provide summaries and reports regarding such disputes to the CFTC. As of that date, SDs and MSPs will be required to file notices of swap valuation disputes through WinJammer™, NFA’s online filing application. NFA noted that beginning in Fall 2016, firms must provide standardized information when filing such valuation disputes. Going forward, NFA will provide additional information to allow SDs and MSPs to modify their processes to comply with these new standards.
NFA Notice I-16-07 is available here.