NFA NAT I 0 N A L FuTuREs Ass 0 c I AT I 0 N 

Received CFTC 

Recordp Section 

1'f!i3fo{ 

VIA E-MAIL: SECRETARY@CFTC.GOV 

Mr. David A. Stawick 

Secretary of the Commission 

Commodity Futures Trading Commission 

Three Lafayette Centre 

1155 21st Street, N.W. 

Washington, D.C. 20581 

November 11, 2009 

COMMENT 

Re: RIN 3038-A887; Electronic Filing of Financial Reports and Notices, 

74 Fed. Reg. October 13,2009 

Dear Mr. Stawick: 

National Futures Association (NFA) welcomes the opportunity to comment 

on the Commission's proposed changes to broaden the use of electronic filing for 

financial reports and other notices. NFA commends the Commission for reviewing 

electronic filing requirements and proposing changes that reflect both technological 

advancements and current practices. NFA encourages the Commission, however, to 

consider other rule changes, as outlined below, which will further expand the use of 

electronic filing. 

Electronic Filing Issues 

The Commission's proposal to permit Futures Commission Merchants 

(FCMs) and Introducing Brokers (ISs) to electronically file the information required by 

Regulation 1.12 will provide for greater efficiencies in the filing process and reduce 

unnecessary paper filings. While NFA supports this change, we also believe the 

Commission should consider requiring, rather than merely permitting, registrants to 

electronically file all notices required by Regulation 1.12. NFA would also support the 

Commission further broadening the use of electronic filing to include FCM certified 

financial statements. Although these certified statements may not always be in a 

standardized format, an FCM could electronically file the document by uploading it as a 

PDF. 

Other Amendments 

NFA agrees with the Commission's proposal to require FCMs and IBs to 

include a statement of income or loss with a non-certified financial statement and to 

300 S. Riverside Plaza Suite 1800 Chicago, Illinois 60606 312.781.1300 800.621.3570 312.781.1467 fax 'liWW.nfa.futures.org 
'1 

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David A Stawick November 11, 2009 

require firms that fall under their minimum net capital requirement to simultaneously file 

written documentation to support the firm's current capital condition. These documents 

provide the Commission with important information for monitoring the financial condition 

of firms. Moreover, with respect to firms that are under their required minimum net 

capital, NFA agrees with the Commission's assessment that it is more beneficial for the 

Commission to receive immediate information on a firm's capital condition than to 

receive information in a specific format. 

Finally, NFA supports the Commission's amendments that eliminate the 

requirements that firms make duplicative filings with NFA and the Commission. These 

amendments will also promote greater efficiency without sacrificing any regulatory 

benefits. 

If you have any questions or would like to further discuss the proposal or 

NFA's comments, please do not hesitate to contact me. 

/ecs(Comment Letter Electronic Filing 11 2009 revised) 

2 

Very truly yours, .v' ... -----

.·~----

Thomas W. Sexton, Ill 

Senior Vice President and General 

Counsel