Monday, November 4, 2013

Futures Regulatory Alert #2013 - 4
NASDAQ Futures Reminds Futures Participants and Clearing Futures Participants of Reporting Requirements

What are Futures Participants and Clearing Futures Participants required to report on a daily basis?

Pursuant to Chapter III, Section 16, each Futures Participant is required to file any report, statement, form, or other information with the Commission pursuant to Parts 15, 17 or 18 of Commission Regulations. In addition, Futures Participants must file a copy of such report with NASDAQ Futures (NQF).

How do Futures Participants submit copies of Large Trader Reports to NQF?

All large trader reports shall be submitted in a form acceptable to NQF, which may require that more than one large trader report be submitted daily. Clearing Futures Participants, omnibus accounts and foreign brokers must provide NQF with the required CFTC Form 102 ("Identification of Special Accounts") accurately identifying the owners, controllers, controlled accounts and any additional information required for each reportable account within three business days of the first day that the account in question becomes reportable. Notwithstanding the three Business Day requirement, on the first day that an account becomes reportable, Clearing Futures Participants, omnibus accounts and foreign brokers must, at the direction of NQF, submit the following information:

• Account type
• Reportable Account Number
• Names and Addresses of the Owners and Controllers of the Account

Please note that the daily Large Trader Reporting submission to NQF must include for each reportable account the EFRP volume bought and sold in the reportable instrument, by contract month. Any material changes to the information previously provided to NQF will require the submission of a revised form within three Business Days of such changes becoming effective. Additionally, in the absence of any material changes, NQF may require the submission of a new form on a biennial basis for the maintenance of accurate records.

Are the requirements different for omnibus accounts?

No, omnibus accounts have the same reporting obligations. Failure by an omnibus account or foreign broker to submit required information may result in a disciplinary proceeding and in limitations, conditions or denial of access of such omnibus account or foreign broker to any Exchange market. Notwithstanding the above, Clearing Futures Participants carrying such accounts remain responsible for obtaining and providing to NQF information regarding the ownership and control of positions in circumstances where an omnibus account or foreign broker has failed to provide the information to NQF.

What is the obligation to report Open Interest?

Pursuant to Chapter III, Section 18, each Clearing Futures Participants is required to accurately report open interest on a daily basis to The Options Clearing Corporation ("OCC") in the form required by OCC and pursuant to OCC Rules.

What is the format for Large Trader report submissions?

Large Trader reporting to NQF should be done in the industry standard format as described on the CFTC Large Trader Record Format webpage.

How do I submit Large Trader Reports to NQF?

Large Trader reports are submitted to NQF via SFTP. Please contact Subscriber Services to establish connectivity to the SFTP server at +1 212 231 5180 (Option #3).

What are the deadlines to report the above information?

• Large Trader Submission: 5:00 EST
• Open Interest Submission: 5:00 EST

Where can I find more information?

• Refer to the CFTC Large Trader Record Format webpage.
• Contact NASDAQ Futures Regulation at +1 800 211 4953.