NFA Amends Compliance Rule 2-46: Late Fees for Quarterly Filings

The National Futures Association (the "NFA") recently amended Compliance Rule 2-46 to impose a late fee for NFA Forms CPO-PQR and CTA-PR. The amended ruling will impose a $200 per business day fee on any commodity pool operator ("CPO") and commodity trading advisor ("CTA") that files a required Form PQR or Form PR after the relevant due date. NFA member CPOs are required to file with the NFA on a quarterly basis regarding the pools they operate. Generally, Form PQR is due within 60 days of the end of each calendar quarter. CTAs are required to file Form PR within 45 days of each calendar quarter end.

The new late fee is effective for all NFA Forms PQR and PR required under NFA Compliance Rule 2-46 beginning with reports dated September 30, 2016 and later. Regarding Form PQR, the late fee will apply to the CPO entity and will not be assessed on each pool operated by the CPO that has a late filing. The NFA is imposing this late fee to encourage the limited number of CPOs and CTAs that file late reports to make timely filings.

To read the amended rule, please click on the link below:

https://www.nfa.futures.org/nfamanual/NFAManual.aspx?RuleID=RULE%202-46&Section=4

To read the NFA's May 31st Submission Letter, please click on the link below:

http://www.nfa.futures.org/news/PDF/CFTC/CR2-46_CPO-CTA-Quarterly-Reporting-Reqs-05-24-2016.pdf

For more information on filing NFA Forms PQR and PR, please click on the link below:

http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=4661

If you have any questions about the Alert, please contact Daniel G. Viola at 212.573.8038 or dviola@sglawyers.com.

Cheryl Spratt