The National Futures Association (the “NFA”) recently announced the development of a proficiency requirements program for all associated persons engaging in swaps activities. The requirements will consist of an online learning program and examination.

Associated persons of registered commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”), as well as other categories of registrants, are currently required to satisfy proficiency requirements applicable to futures trading (typically the Series 3 exam), unless an exemption applies. Once this new program is implemented, associated persons of CPOs and CTAs, as well as other categories of registrants, that engage in swaps will need to satisfy training and proficiency testing related to such swap activity.

The NFA formed a committee composed of industry experts to assist in establishing this new program, which the NFA expects will be implemented starting in 2020.

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If you have any questions regarding the matters covered in this memo, please contact any of the partners and counsel listed below or your primary attorney in Seward & Kissel’s Investment Management Group.