NFA to Require Swap Proficiency Testing for Associated Persons of CPOs and CTAs Who Engage in Swaps Activity - Key Points - March 8, 2019

Sep 26, 2026

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NFA is adopting amendments to its Bylaws and Compliance Rules, together with an Interpretive Notice, to establish new “Swaps Proficiency Requirements” for swap associated persons (Swap APs) of registered commodity pool operators (CPOs) and registered commodity trading advisors (CTAs), including those who solicit customers or accept orders for CFTC-regulated swaps. By the effective date of January 31, 2021, all such Swap APs must pass an online “short track” exam with four modules; no grandfathering is provided for prior approvals.

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Key Points

Scope of the New Requirements

Exam and Effective Date

No Grandfathering Exception

Investment Management Alert NFA to Require Swap Proficiency Testing for Associated Persons ofCPOs and CTAs Who Engage in Swaps Activity March 8, 2019 Key Points • By January 31, 2021, all swap associated persons of registered CPOs and CTAs must take and pass the NFA’s new swaps proficiency requirements. • The swaps proficiency requirements mirror the proficiency testing long required for associated persons of CPOs and CTAs who engage in commodity futures or forex activity. Absent objections from the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA) is adopting amendments to its Bylaws and Compliance Rules along with an explanatory Interpretive Notice 1 which will implement new “Swaps Proficiency Requirements” for associated persons of registered commodity pool operators (CPOs) and registered commodity trading advisors (CTAs), among others,2 who engage in (or supervise those who engage in) soliciting customers or accepting their orders to trade CFTC-regulated swaps (Swap APs) . Subject to certain exceptions, associated persons of CPOs and CTAs have long been required to pass the Series 3 or Series 34 proficiency exam if their activities involve commodity futures or forex activity, respectively. However, since the NFA created the Swap AP designation and approval requirement as a result of the Dodd-Frank reforms, no corollary proficiency testing component has existed. The NFA cited its statutory mandate and recent recommendation from the chairman of the CFTC as the rationale for moving ahead in adopting a training and testing program to raise the professional standards for all Swap APs. 1 See National Futures Association: Proposed Amendments to NFA Bylaw 301 and NFA Compliance Rule 2-24 and Proposed Interpretive Notice Entitled: NFA Bylaw 301 and Compliance Rule 2-24: Proficiency Requirements for Swap APs, available at [https://www.nfa.futures.org/news/PDF/CFTC/InterpNotcNFABylaw301CR2-](https://www.nfa.futures.org/news/PDF/CFTC/InterpNotcNFABylaw301CR2-)[ ](https://www.nfa.futures.org/news/PDF/CFTC/InterpNotcNFABylaw301CR2-)[24ProficiencyRequirementsSwapAPs.pdf](24ProficiencyRequirementsSwapAPs.pdf.)[.](24ProficiencyRequirementsSwapAPs.pdf.) 2 This Investment Management Alert focuses on the Swaps Proficiency Requirements applicable to Swap APs of CPOs and CTAs. However, the Swaps Proficiency Requirements are also applicable to Swap APs of swap dealers, major swap participants, futures commission merchants and introducing brokers. Contact Information If you have any questions regarding this alert, please contact the Akin Gump lawyer with whom you usually work or Jan-Paul Bruynes Partner [jpbruynes@akingump.com](jpbruynes@akingump.com)[ ](jpbruynes@akingump.com)New York +1 212.872.7457 Jason M. Daniel Partner [jdaniel@akingump.com](jdaniel@akingump.com)[ ](jdaniel@akingump.com)Dallas +1 214.969.4209 Effective January 31, 2021 (the “Effective Date”), in order to receive NFA approval (or maintain such approval) as a Swap AP of a registered CPO or CTA, individuals must have passed the “short track”3 version of an online swaps proficiency exam consisting of four modules: (i) swaps products and applications; (ii) regulation of the swaps market; (iii) supervision and intermediary compliance; and (iv) anti-fraud and other requirements. There is no grandfathering exception for Swap APs approved by the NFA prior to the Effective Date, meaning all current Swap APs must pass the Swaps Proficiency Requirements by no later than the Effective Date in order to continue serving in such capacity. [akingump.com](akingump.com) 3 A “long track” version of the Swaps Proficiency Requirements exists for certain Swap APs of swap dealers and major swap participants.

FAQs

What is the NFA requiring for CPO and CTA associated persons who engage in swaps activity?

The NFA is implementing new “Swaps Proficiency Requirements” for swap associated persons of registered CPOs and CTAs who engage in, or supervise others who engage in, soliciting customers or accepting orders to trade CFTC-regulated swaps.

When must Swap APs complete the new proficiency requirements?

Swap APs must pass the online swaps proficiency exam by no later than the Effective Date, January 31, 2021, to receive or maintain NFA approval.

What does the “short track” online swaps proficiency exam include?

The short track version is an online exam consisting of four modules: (i) swaps products and applications; (ii) regulation of the swaps market; (iii) supervision and intermediary compliance; and (iv) anti-fraud and other requirements.

Sep 26, 2026

Uploaded by Pentious