On August 17, the National Futures Association (NFA) notified its members that amendments to NFA Compliance Rule 2-30(b) regarding risk disclosure statements for security futures contracts became effective on August 14. The amendment to NFA Compliance Rule 2-30(b) updates and replaces the prior risk disclosure statement and creates a 2020 supplement. The updated security futures risk disclosure statement reflects recent amendments to CFTC Regulation 41.25, which governs position limits and position accountability for security futures contracts.

NFA members and associates will need to provide either the updated statement or the 2020 supplement to all customers that have been approved to trade security futures contracts no later than the time a security futures contract transaction confirmation is delivered to the customer. NFA members and associates will also need to provide the updated statement to all applicable new customers.

NFA Notice I-20-30 is available here.

The updated risk disclosure statement is available here.

The 2020 supplement is available here.