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1 August , 20 Via Email (secretary@cftc.go
August , 20 Via Email (secretary@cftc.gov) r. Christopher J. KirkpatrickSecretary PROPOSED AMENDMENTS (additions are underscoredand deletions are stricken through NATIONAL FUTURES ASSOCIATIONNFA INTERPRETIVE NOTICE �� Mr. Christopher J. Kirkpatrickugust, 20 Each FCM, RFED, IB, CPO and CTA isrequired to list on Form 7R each of its branch offices.A branch office is defined as follows: Any location, other than the main business adess at which an FCM, RFED, IB, CPO or CTA employs one or morepersons engaged in activities requiring registration as an AP, excluding any location where one or more APs from the same household live or rent/lease provided the location is not held out to e public as an office ofthe Member; the AP(s) does not meet inperson with customers or physically handle customer funds at thelocation; and any CFTC or NFA required records created at the nonbranch office location areaccessible for inspectionat thMember firm's main or applicable listed branch office as required under CFTC Regulation 1.31 and NFA Compliance Rule 2 is a branch office.This is true even if there is only one person at the location. If the firm has one or more branch offices, NFs registration records on the firm must include the names of all persons who are branch office managers.Each location musthave a branch office manager, and that person's status as abranch office manager should be listed in the Registration Categoriesction of the person's Form 8R even if previously listed as a principal in the Registration Categories section of the perso's Form 8Each branch office must have a different manager. The address must also be given for each branch office.A P.Oox isnot sufficient. Anyone with a status as branch office m

2 anager must also be currently registered
anager must also be currently registered as an AP or have applied fr such registrationWhenever a new branch office is established it must be reported, with all the required information, to FA by filing an update electronically to the firm's Form 7The closing of an existing branch office should also be reported by iling an update electronicallyto the firm's Form 7R. IF YOUR FIRM CURRENTLY HAS PERSONS OPERATING OUT OF LOCATIONS OTHER THAN ITSMAIN BUSINESS ADDRESS, THOSE LOCATIONS MUST IMMEDIATELY BE REPORTED TO NFA BY FILING AN UPDATE ELECTRONICALLY TO THE FIRM'FORM 7R AND BY ADDING BRANCHOFFICE MANAGER STATUS ON EACH BRANCH OFFICE MANAGER'S FORM 8R. NFA may take disciplinary action against any Member which fails to properly list all of its offices. An important point to recognize is that a branch office my not itself be a separate corporation or partnership.CFTCRegulation 166.4 requires each branch office to usethe name ofthe firmof which it is abranch for all purposes and to hold itself out to the public under such name.Also, in CFTC Interpretive etter No. 8410 (May 29, 1984)it was concluded that a branch office could not maintain a separate identity from the �� Mr. Christopher J. Kirkpatrickugust, 20��3 &#x/MCI; 0 ;&#x/MCI; 0 ;MembeOne obvious conclusionto be drawn from this information is that each AP in a branch office must be paid directly by the Member.yment through any intermediarywould lead to the assumptionthat the intermediary would be required to register as an he requirement that a branch office hold itself out to the public under the name of the Member is intended to ensure that customersare always aware ofthe Memberwith which they are doing business.It is necessary

3 that any branch office AP, even one ope
that any branch office AP, even one operating outof a residence or an unrelated place of business, make sure that customers understand who they are doing business with. XPLANATION OF PROPOSED AMENDMENTS NFA Interpretive Notice 9002 entitled Registration RequirementsBranchOffices(Branch Office DefinitionInterpretive Norequires a Member firmother than a swap dealerto list as a branch office onits Forany location other than tMember's main business address from which APs engage in activities requiring registration.NFA alsorequires that each branoffice have a branch office manager who has successfully completed the Branch Manager Examinatio(Series 30).Additionally, thfirm isrequired to conduct an annual inspection of each branch officeIn March 2020,e to the Covid19 pandemicNFA issued a Notice to Members (Notice) providing Members with relief from these requirements recognizing that Member firms would be erating pursuant to thebusiness continuity plans and permit employees, including registered APs, to work remotely from locationsthat had not been listed as a branch office.The NoticerequiredMemberthat allowedPs to rk remotelyto implement alternatve supervisory methods to adeqatelysupervise' activities and meet recordkeeping requirementThe relief provided by this Notice remains in effect. NFAunderstands thatMember firms, similar to other businesses, maadopt hybrid work environments that will it employees, including registered Ato work fromtheir homes or other remotocationsNFAs Boardoes not believe thatunder appropriate circumstances,there is sufficient regulatory benefit to require Members to list these types of locations as branch offices and impose the branch officerequirements upon a firm for each of these locationserefore, th

4 e Board amendthe definition of branch of
e Board amendthe definition of branch officein theInterpretive Noticeto specifically exclude locations where one or more APs from the same household work or rent/lease the locationprovided: �� Mr. Christopher J. Kirkpatrickugust, 20��4 &#x/MCI; 2 ;&#x/MCI; 2 ;• The AP(s) doesnot hold thlocation outto the public as the Member's officeThe AP(s) not meet with customers or physicallyhandle customer funds locationandAny CFTC or NFA required records created at the remote location are accessibleat the firm's main or applicable listed branch officeas required under CFTC Rgulation 1.31 and NFA Compliance Rule This definition is designed to capture both work from home arrangementsas well as flexible shared workspace arrangements.Firms may delist locations that arcurrentidentified as branchofficeif those locations fall outside the amended definition. NFAFCM, IB and CPO/CTAMember Advisory Committeessupported amending the anch office definition in the Interpretive otice.NFA'sutiveCommitteeso ppothe proposed amendments.As stated earlir, NFA's Board unanimously approved the proposed amendments on August , 20As mentioned earlier, NFA is invoking the“tenday” provision of Section 17(j) of the CEA. NFA intends toissue a Notice to mbers establishing an effective date of the oposedamendments to NFA's Interpretive Notice entitled Registration Requirements: Branch ffices effective as early as ten days after receipt of this submission by the Commission, unless the Commission notifies NFA that the Commission has determined to rview the proposalfor approval.Respectfully submitted, Carol A. Wooding Senior Vice President and General Coun