From: FinanceMagnates.com
The NFA is signaling that it expects either compliance with the “guidance” or an explanation as to why alternative methods are sufficient.
The Bloggers Regulation (Retail FX)
This article was written by Nicholas A. Oldham, Phyllis B. Sumner and Mark H. Francis. Nick Oldham is a former federal prosecutor with significant experience handling matters stemming from cybersecurity and privacy incidents. He specifically advises clients on cybersecurity and privacy matters involving financial regulators such as the CFTC and NFA. Phyllis Sumner is the head of King & Spalding’s Data, Privacy & Security practice. She also advises clients on cybersecurity and privacy matters involving financial regulators such as the SEC, FINRA, CFTC and NFA. Phyllis served as an Assistant U.S. Attorney, first in the Northern District of Illinois (Chicago) and then in the Northern District of Georgia (Atlanta). Mark Francis regularly advises clients on cybersecurity governance and policies, technical controls, security frameworks, incident response and U.S. privacy law.
On October 23, 2015, the Commodity Futures Trading Commission (CFTC) approved the National Futures Association’s (NFA’s) Interpretive Notice to NFA Compliance Rules 2-9, 2-36 and 2-49 entitled Information Systems Security Programs. The “Cybersecurity Interpretive Notice” will become effective on March 1, 2016, and it applies to all NFA members. The Cybersecurity Interpretive Notice requires those members to adopt and enforce written cybersecurity policies, and implement proactive measures to secure customer data and access to electronic systems.
The Joint Mission of the CFTC and NFA
Created by Congress in 1974, the CFTC acts as a regulatory agency with jurisdiction over futures trading. The same bill that established the CFTC also authorized the creation of the NFA, a self-regulatory body for the futures industry that would act in conjunction with CFTC oversight. Together, the CFTC and the NFA protect market participants by monitoring the behavior of member firms and ensuring strict compliance with regulations concerning areas like risk disclosure, capital requirements, and advertising. Recent years have seen the CFTC’s regulatory reach expand even further, with the Dodd-Frank Act giving the Commission more enforcement authority over a wider array of organizations.
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