Sep 12, 2016 | News

Proposed Amendment to NFA Compliance Rule 2-46

On Sept. 6, 2016 the NFA submitted to the CFTC a proposed amendment with regard to reporting financial information on NFA forms PQR and PR.  This amendment will allow the NFA to collect financial information on the financial condition of Commodity Pool Operators and Commodity Trading Advisor Members to identify firms that may face financial difficulty that could possibly impair their ability to act in the best interest of their clients.

CPO and CTA members will be required to report these ratios on their quarterly PQR and PR (accrual method of accounting)

  • Current Assets to Current Liabilities
  • Total Revenue to Total Expenses

The components of these calculations should be based on the requirements of GAAP or another internally recognized accounting standard that must be consistently applied.  Members of a subsidiary will be able to report these ratios at the parent-company level.

CPOs and CTAs must maintain all financial records in support of the ratios (also including Holding Company financial records if applicable).

More details of this amendment can be found here.

If you have questions or concerns with regard to these new reporting requirements, please call Mike at 630-351-8942 or email