CFTC Staff Advisory 13-16: Obligation of Futures Commission Merchants, Clearing Members and Foreign Brokers to Report Omnibus Account Information in a Timely Manner as Required by Commission Regulation 17.04(a)

CFTC Staff Advisory No. 13-16
Other Written Communication
May 22, 2013
Division of Market Oversight
DIVISION OF MARKET OVERSIGHT ADVISORY
Obligation of Futures Commission Merchants, Clearing Members and Foreign Brokers to Report Omnibus Account Information in a Timely Manner as Required by Commission Regulation 17.04(a)
I. Introduction and Background
The Division of Market Oversight of the Commodity Futures Trading Commission (“Commission”) issues this advisory to remind market participants of their ongoing legal obligation to comply with Regulation 17.04(a), which requires any futures commission merchant, clearing member or foreign broker that has established an omnibus account (“originating firm”) to report information about such omnibus account in sufficient time to allow the futures commission merchant, clearing member or foreign broker with whom the omnibus account is established (“clearing firm”) to submit timely reports to the Commission. Timely reporting is critical to the proper functioning of the Commission's market surveillance program. The Commission relies on timely reports submitted to the Commission by clearing firms pursuant to Part 17 of the Commission’s regulations. In order to submit timely reports to the Commission, clearing firms need information about omnibus accounts to be reported to them by originating firms in a timely manner.
II. Commission Regulation 17.04(a) Requirements
Regulation 17.04(a) requires any originating firm that establishes an omnibus account with a clearing firm to report to the clearing firm certain information regarding the omnibus account “in sufficient time to enable the [clearing firm] with whom the omnibus account is