NFA approves $85m budget for fiscal year 2016

The National Futures Association (NFA) has today announced that its Board of Directors approved a budget of $85 million for the fiscal year to June 30, 2016.

The number takes into account a 7.7% rise in projected operating expenses over those for fiscal year 2015. A key contributor to this rise is the planned expansion of NFA’s swaps regulatory programs ($2.5 million) and the growth in NFA’s technology staffing ($1.2 million). These two factors are responsible for more than 60% of the increase.

In the coming fiscal year, NFA’s staffing of swaps regulatory programs for swap dealers (SDs) and major swaps participants (MSPs) is budgeted to expand by close to 20 resulting in an average headcount of 100. NFA notes that it started performing on-site examinations of swap dealers this fiscal year and will conduct more on-site exams next year. NFA will also keep developing its internal risk profiling system and monitoring program for SDs and MSPs.

Another key factor adding to the budget increase is extra staffing for NFA’s Information Systems department. The funds are needed to support cybersecurity initiatives, rebuild large critical systems — such as NFA’s Online Registration System — and focus on new system developments in the swaps area.

“Cyber threats are constantly evolving and increasing both in terms of complexity and intensity and serve as a daily reminder of the importance of effective cybersecurity,” said Timothy McHenry, vice president, Information Systems.

To view the original NFA announcement, click here.

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