NFA Cuts the Red Tape: Non-US Swap Dealers Breathe Easier With Streamlined Cross-Border Amendments

Sometimes the best regulatory changes are the ones that make compliance officers smile — and maybe even leave the office before 7:00 p.m. The National Futures Association (NFA) recently delivered just that, amending two key interpretive notices to ease cross-border compliance burdens for swap dealers (SDs) while maintaining robust oversight. These March 23 amendments, effective immediately, align NFA requirements with the cross-border framework established by the Commodity Futures Trading Commission (CFTC or Commission), eliminating duplicative obligations that have long been a source of friction for globally active swap market participants.

The Now-Rescinded Compliance Conundrum 

In 2017, the NFA adopted Interpretive Notice 9072, which required all SDs to notify the NFA of any swap valuation dispute with a counterparty exceeding $20 million USD (or the equivalent amount in another currency) within specified timeframes. This requirement was designed to support the NFA's monitoring and risk profiling of SDs through standardized dispute information reporting.

Similarly, in 2020, the NFA adopted Interpretive Notice 9077 (Notice 9077, together with Notice 9072, the Notices), which established supervisory requirements for SDs regarding the use of marketing materials provided to counterparties and potential counterparties. Notice 9077 required SDs to implement written policies and procedures for reviewing, approving, and maintaining records of marketing materials to ensure compliance with NFA and CFTC requirements related to fraudulent practices, fair and balanced communications, and just and equitable principles of trade.

Both of these Notices originally applied to all SDs without regard to the cross-border exemptions available under CFTC regulations, creating a compliance gap where SDs eligible for foreign swap[1] exemptions or substituted compliance under CFTC Rule 23.23 were nonetheless obligated to comply with NFA requirements that went beyond corresponding CFTC rules.

What's Changed: The Fine Print

The amendments made to the Notices, along with the rescission of Notice to Members I-17-10, include the following key changes:

• Notice 9072 – Swap Valuation Dispute Filing Requirements. As amended, SDs relying on the foreign-based swap exemption in CFTC Rule 23.23(e) or substituted compliance in CFTC Rule 23.23(f) for certain swaps are no longer required to notify the NFA of swap valuation disputes for those swaps. This aligns NFA's requirements with the cross-border application of CFTC Rule 23.502 (Portfolio Reconciliation).
• Notice 9077 – Marketing Materials Supervision. The amended Notice 9077 now provides that its requirements do not apply to SDs relying on the foreign swap exemption in CFTC Rule 23.23(e). This ensures consistency with the cross-border application of the external business conduct standards in CFTC Rules 23.410 and 23.433, neither of which applies to certain foreign-based swaps.
• Rescission of Notice to Members I-17-10 – Monthly Risk Data Reports. The NFA’s board of directors approved the rescission of the obligation for SDs to submit monthly risk data reports previously required under NFA Financial Requirement Section 17 and described in Notice to Members I-17-10. This rescission was effective February 19, 2026, and SDs are no longer required to file these reports with the NFA.

Impacts on Compliance Framework and Resource Savings

These amendments should yield meaningful benefits for swap dealers operating across multiple jurisdictions. In particular, these amendments will result in the following benefits: 

• SDs with significant cross-border operations can eliminate duplicative reporting and supervision processes for foreign swaps that are already subject to home-country regulation. This should translate to reduced staffing needs for compliance monitoring and filing activities related to these transactions.
• The alignment of Notice 9072 with CFTC cross-border rules means SDs will no longer need to maintain separate tracking systems or processes to report swap valuation disputes that fall within the foreign swap exemption or substituted compliance framework. For many global dealers, this could significantly reduce the volume of dispute notices filed with the NFA.
• SDs can now apply a consistent cross-border framework to their marketing materials supervision programs, reducing the complexity of compliance review processes for materials used in connection with foreign swap activities.
• The rescission of Notice to Members I-17-10 removes an ongoing data collection and submission obligation, freeing up compliance and finance personnel from preparing these periodic reports. 

While these amendments reduce compliance burdens, SDs should review and update their written supervisory procedures to reflect the new cross-border carve-outs. SD Compliance teams should ensure that appropriate mechanisms are in place to identify which swaps qualify for the foreign swap exemption or substituted compliance and to document reliance on these provisions.

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The NFA's amendments to Notices 9072 and 9077, together with the rescission of monthly risk data reporting requirements, represent a welcome step toward regulatory harmonization for SDs operating in global markets. By aligning NFA requirements with the 2020 amendments to the Commission's cross-border framework, these changes reduce duplicative compliance obligations while preserving the NFA's ability to oversee its SD members effectively. The NFA's board of directors unanimously approved the amendments, which are effective immediately. SDs should take this opportunity to assess their current compliance infrastructure and identify where these regulatory changes can yield operational efficiencies. 

For questions about how these amendments may affect your firm's compliance framework, please contact your Katten Financial Markets and Regulation attorney.