Self-Regulator of US Futures Reminds Members To Make Reports Of Crypto Activities
This Will Be Done Quarterly
The US futures industry which is the self-regulatory organization (SRO) declared that the citizens and also the members who have indulged in the cryptocurrencies and also the other related derivative products need registration of the activity they are doing. This was said on Tuesday.
Therefore, the NFA (National Futures Association) was involved in the issuance of a reminder majorly to the Commodity Trading Advisors (CTA), the commodity pool operators (CPOs) and also the Introducing Brokers (IBs). This comes after two notices were issued late last year on the same subject. These notices have however been issued just as various corporations in the United States have announced to launch Bitcoin futures trading in December.
The notices had the numbers 1-17-28 and also 1-17-29 and were directly addressed to the IBs, the CTAs and also the CPOs. These are the corporations involved in the trading, advising and also soliciting orders on the cryptocurrency derivatives and also cryptocurrencies.
Therefore, due to the results of the notices, the IBs, CTAs and also the CPOs will have the requirements to make reports about their cryptocurrency activities especially to the NFA. This is through a questionnaire which will be issued annually to the regulator.
The SRO said:
“NFA reminds CPOs, CTAs, and IBs that this is an ongoing obligation.”
As it has been designated by the Commodity Futures Trading Commission (CFTC), the NFA is seen as the major SRO in the derivatives industry in the US. Therefore they are to ensure that visitors have protection and also that their members adhere to the regulatory mandates which have to be followed.
Additionally, in accordance to the notices, beginning 2018, the traders involved in cryptocurrencies, the brokers and the advisers who have attained registration with the NFA should file details in regard to their major activities, for instance, the managed pools in each calendar quarter.