On your list of things for which to be thankful, remember to add “the ability to electronically file a CFTC Form 40 / 40S”.
Here is a very courteous reminder from the CFTC’s Division of Market Oversight that the new era of submitting electronic Form 40 is about to begin.
In case some readers do not know, the CFTC conducts market surveillance activities under what it refers to as a “Large Trader Reporting Program“. As part of that program, the CFTC monitors when the level of derivatives trading by an individual market participant (like an investment adviser and the funds or accounts under their control) exceeds a certain specified level. For example, CFTC Rule 15.03 designates different reporting levels for different types of futures contracts. Once a reporting level is crossed, the CFTC will send a notice to the “large trader” that it must complete and submit what is known as a CFTC Form 40 (for futures contracts) or a CFTC Form 40S (for swaps).
Prior to midnight Eastern on November 18, 2016, this form could be submitted in paper form – ah, the good old days. But, in less than 6 hours, the form will need to be submitted electronically. Many market participants have already submitted a Form 40 electronically, well in advance of this evening’s deadline. Nevertheless, the good old days are about to come to an end and we are certain that there are some market participants who are unaware of this change.
Not to worry, as Billy Joel said, “I guess the good old days were not so good and tomorrow ain’t as bad as it seems.”
Good day. Good e-filing of Forms 40/40S. DR2