Financial Requirements FAQs
FCMs, RFEDs and Independent IBs are required at all times to maintain Adjusted Net Capital greater than their minimum net capital requirement. Adjusted Net Capital is computed as follows: Current Assets – Liabilities – Charges Against Capital = Adjusted Net Capital. See CFTC Regulation 1.17 for information on how to calculate current assets, liabilities and charges against capital.
Immediately notify the appropriate regulators. FCMs and RFEDs must immediately file notice with the CFTC, the DSRO and the SEC if such firm is a securities broker or dealer.
IBs must immediately file notice with NFA, the DSRO and every FCM carrying or intending to carry customer accounts.
All notices must be submitted electronically immediately after the firm knows or should have known that its Adjusted Net Capital is less than the minimum required amount. The notices must also include a discussion of how the reporting event originated and what steps have been or are being taken to address the reporting event.
An undercapitalized firm must take immediate action to bring its Adjusted Net Capital above the firm's minimum required amount. Financial statements and supporting documentation must also be sent to the agencies that received notification. See CFTC Regulation 1.12.
FCMs and RFEDs must file monthly unaudited statements no later than 17 business days after the end of the month. Generally, Independent IBs must file semi-annual unaudited statements no later than 17 business days after the end of the six-month period. However, if the Independent IB is also a securities broker-dealer, it should file using the same cycle for which it files its FOCUS forms. Generally, FCMs must file annual certified statements no later than 60 days after the close of the firm's fiscal year, and RFEDs and Independent IBs must file annual certified statements no later than 90 days after the close of the firm's fiscal year. However, if the firm is also a securities broker-dealer, its annual certified statement must be filed no later than 60 days after the close of the firm's fiscal year.
FCMs and RFEDs must file all monthly unaudited financial statements electronically using the WinJammer™ system. A copy of this filing must also be sent to the CFTC. Certified financial statements for FCMs and RFEDs must be filed through the WinJammer™ system.
Independent IBs must also file their financial statements electronically. Broker-dealers filing FOCUS II or FOCUS IIA must use WinJammer™ to submit their unaudited and certified financial statements. 1-FR-IB filers must use EasyFile to file both their unaudited and their certified financial statements.
WinJammer™ users go to Electronic Filings to file their statements and to learn how to become authorized to make filings. EasyFile users also go to Electronic Filings to file their statements, but they must ask their firm's Security Manager to authorize specific individuals to use the system.
If financial statements are not filed by their due date, the Member will be charged a late filing fee of $1,000 per business day late. Under Bylaw 1303, failure to pay the late filing fee within 30 days of the due date will be deemed by NFA as a request by the Member to withdraw from NFA membership.
An FCM that holds customer segregated funds, funds received from foreign futures and options customers, and funds received from cleared swaps customers must file daily reports with NFA by noon of the following business day. The FCM must inform NFA's Compliance Department prior to accepting customer funds, and NFA will then set up a web-based reporting system for that FCM.
In addition to filing daily reports, an FCM who holds customer segregated funds, secured amount funds and/or cleared swaps customer collateral must file the Segregated Investment Detail Report (SIDR) on a semi-monthly basis via WinJammerTM. The SIDR must be filed with NFA by 11:59 p.m. on the business day following the 15th and the last business day of each month for information as of the close of the 15th (or the following business day if the 15th falls on a weekend) and the last business day of each month. See the SIDR Statement Due Dates for the list of filing due dates.