CFTC Ownership and Control Reporting
The Commodities Futures Trading Commission (CFTC) has historically maintained rules which require FCMs to report information relating to clients holding positions equal to or exceeding defined thresholds (e.g., Large Trader Reporting). In November 2013, the CFTC adopted a new rule which expands the prior reporting rules and which requires the collection and reporting of more comprehensive information on owners and controllers of accounts trading U.S. commodity futures products. This new rule is referred to as Ownership and Control Reporting (OCR) and outlined below are a series of FAQs relating to this rule.
1. Who must provide CFTC OCR information?
In order to comply with the requirement that any account meeting the position or volume thresholds be reported to the CFTC by 09:00 ET on the day following the day in which the account becomes reportable, IB requires that all accounts trading U.S. commodity futures products provide the requested information.
In order to comply with the requirement that any account meeting the position or volume thresholds be reported to the CFTC by 09:00 ET on the day following the day in which the account becomes reportable, IB requires that all accounts trading U.S. commodity futures products provide the requested information.
2. What information must be provided?
The following information is required of all Owners and Controllers of an account:
• Name
• Street Address
• Email Address
• Direct Phone Number, Including Country Code
The following information is required of all Owners and Controllers of an account:
• Name
• Street Address
• Email Address
• Direct Phone Number, Including Country Code
The following details are also required for owners and controllers that are legal entities:
• Legal Entity Identifier (LEI), If Applicable
• Contact Person Details:
o Name
o Job Title
o Relationship to Legal Entity
o Direct Phone Number, Including Country Code
• Legal Entity Identifier (LEI), If Applicable
• Contact Person Details:
o Name
o Job Title
o Relationship to Legal Entity
o Direct Phone Number, Including Country Code
The following details are also required for all individuals who are “Account Controllers”:
• Individual’s Relationship to Account Owner
• Individual’s Job Title
• Name of Individual’s Employer
• Employer’s Legal Entity Identifier (LEI), If Applicable
• Individual’s Relationship to Account Owner
• Individual’s Job Title
• Name of Individual’s Employer
• Employer’s Legal Entity Identifier (LEI), If Applicable
3. Who is an "Account Owner" for the purposes of OCR?
An "Account Owner" includes any individual or legal entity who holds a direct ownership interest in the trading account.
4. Who is an "Account Controller" for the purposes of OCR?
The CFTC defines an “Account Controller” as “a natural person who by power of attorney or otherwise actually directs the trading of an account. A trading account may have more than one controller.”
This definition can be found at 17 C.F.R. § 15.00(bb).
An "Account Owner" includes any individual or legal entity who holds a direct ownership interest in the trading account.
4. Who is an "Account Controller" for the purposes of OCR?
The CFTC defines an “Account Controller” as “a natural person who by power of attorney or otherwise actually directs the trading of an account. A trading account may have more than one controller.”
This definition can be found at 17 C.F.R. § 15.00(bb).
5. What is the "Head of Desk" option?
As noted above, you must provide full OCR information for all Owners and Controllers of your account. Unless you indicate otherwise, IB presumes that every active TWS user on your account is an Account Controller for CFTC OCR purposes.
Your institution may have a "Head of Desk" who directs the trading of your institution's trading account, with the other traders simply acting under this individual's direction. If this is the case, you can identify the "head of desk" using the Account Management OCR interface, in which case "Account Controller" information will only be required for that individual.
6. What is a Legal Entity Identifier (LEI)?
An LEI is a unique 20 -digit alphanumeric code associated with a single organization and which is intended to be recognized universally across regulatory agencies and jurisdictions.
-If any of the Account Owners or Controllers of your account have LEIs, you must provide the LEIs;
-If an Account Owner or Controller of your account does not have an LEI, you can select "non applicable".
DTC, in collaboration with SWIFT, operate as the local (U.S.) source provider of LEIs and maintains a website (www.gmeiutility.org) for the assignment of new and search of existing LEIs.
7. What is a National Futures Association (NFA) ID?
A number which the National Futures Organization assigns to each registrant (e.g., firms and individuals such as Commodity Trading Advisors and Commodity Pool Operators). The NFA maintains an Online Registration System (ORS) through which registration and assignment of the ID is provided. See www.nfa.futures.org
A number which the National Futures Organization assigns to each registrant (e.g., firms and individuals such as Commodity Trading Advisors and Commodity Pool Operators). The NFA maintains an Online Registration System (ORS) through which registration and assignment of the ID is provided. See www.nfa.futures.org
8. How do I know if my employer has an LEI or NFA ID?
You may ask your employer to provide you with this information or search one of the following websies:
You may ask your employer to provide you with this information or search one of the following websies:
LEI searches may be performed via the following DTC website: www.gmeiutility.org. Searches may be conducted by the entity's registered legal name or address.
NFA ID searches may be performed via the following NFA webpage: www.nfa.futures.org/basicnet/welcome.aspx . Searches may be conducted by entering a firm name, individual name or pool name.
9. Why must I provide this information?
U.S. federal regulations require all FCMs, including IB, to obtain this information from its clients. The requirement is universal and applies to any individual or entity regardless of their broker.
U.S. federal regulations require all FCMs, including IB, to obtain this information from its clients. The requirement is universal and applies to any individual or entity regardless of their broker.
10. Does OCR apply to non-U.S. persons?
Yes, if you wish to trade U.S. commodity futures products, we must collect this information from you.
Yes, if you wish to trade U.S. commodity futures products, we must collect this information from you.
11. How will Interactive Brokers treat this information?
This data will be kept confidential in accordance with the Interactive Brokers Group Privacy Statement. See link for details: https://individuals.interactivebrokers.com/en/index.php?f=ibgStrength&p=priv
This data will be kept confidential in accordance with the Interactive Brokers Group Privacy Statement. See link for details: https://individuals.interactivebrokers.com/en/index.php?f=ibgStrength&p=priv
12. Can I enter the OCR information in multiple sessions?
Unfortunately, all data must be entered within a single session and partial entry and a save option is not available. If you do not enter all required OCR information in a single session, you will need to start all over and reenter it in your next session.
13. Are foreign brokers subject to OCR?
Yes. As a foreign broker you must either:
a) Ensure that IB has OCR information for all of your customers that trade U.S. commodity futures products; or
b) Perform your own OCR submissions on their behalf.
14. Where can I learn more?
The full text of this rule change is available on the CFTC website
The full text of this rule change is available on the CFTC website