On January 13, the Commodity Futures Trading Commission’s Market Participants Division determined that the National Futures Association’s (NFA) swap dealer capital model requirements and review program are comparable with the CFTC’s swap dealer capital model requirements and review program. As a result, a capital model approved by NFA will be accepted as an alternative means of compliance with CFTC Regulation 23.102.

CFTC Regulation 23.102 permits a swap dealer to apply to the CFTC or to the registered futures association of which it is a member to obtain approval to use internal models for purposes of making model computations for capital under the CFTC’s rules. The regulation further requires the CFTC to determine whether NFA’s model requirements and review process are comparable to those of the agency.

Swap dealers are required to comply with newly adopted capital requirements by October 6, 2021. See the CFTC’s release with a link to the CFTC Staff Letter No. 21-03.