Services/ Futures Industry Support

SDDco assists futures industry individuals and firms including Futures Commission Merchants (FCMs), Introducing Brokers (IBs), Commodity Pool Operators (CPOs), and Commodity Trading Advisers (CTAs) with accounting procedures, regulatory net capital computations, periodic filings, and pertinent compliance matters.  These  specialized businesses with unique issues require specialized accounting treatments.

Regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), commodity brokers must stay in compliance with the rules and proper accounting guidelines at all times.

Commodity Broker Registration

SDDco will fully manage your commodity broker CFTC registration and membership with the NFA.  We will guide each aspect of the process and review all application content with your management team.  Our function will include as specific to your entity’s registration requirements:

  • Review of NFA members’ audited financial statements of the new entity
  • Prep and filing of  required documents including Form 7-R
  • Supervision of the registrations of all associated persons and principals
  • Serve as Security Manager to file application electronically
  • Draft business manuals including AML Procedures, Business Continuity and Disaster Recovery Procedures, Customer Complaint Procedures, Supervision of Sales Practice and Associated Person Procedures, Privacy Policy, and Ethics Training Policy
  • Draft NFA Analysis information including your fiscal year end, business plan, client types, commodities to trade, and your CPA, legal counsel and carrying broker
  • Respond to regulator follow-up requests

Commodity Broker Financial Duties

SDDco will assist commodity brokers with all accounting procedures including monthly maintenance of the books & records, regulatory net capital computations, and periodic filings as required for your business structure.

Accounting retainer functions for FCMS and IBs include:

  • Setup & upgrade of QuickBooks accounting software systems
  • Oversee NFA members broker books and records
  • Preparation and analysis of general ledger & financial statements
  • Preparation of accountant compiled reports including footnote disclosures
  • Preparation of 1099, 1096 and other year-end reports
  • Performance of  budgets and forecasting
  • Computation of monthly net capital and all related items, such as Haircuts
  • For FCMs: review of segregation and secured account computations
  • Filing Form 1-FR-FCM monthly or 1-FR-IB semi-annually
  • Interfacing with outside auditors or regulators during audit exams and as needed

Accounting retainer functions for CPOs and CTAs include:

  • Setup & upgrade of QuickBooks accounting software systems
  • Prep and analysis of general ledger and financial statements
  • Preparation of client statement monthly and quarterly
  • Computation of net asset value (NAV)
  • Filing Form PF or PDQ quarterly
  • Disclosure document review
  • Disclosure document capsule preparation
  • Performance table reporting

Commodity Broker Compliance Duties

  • Review compliance manual policies and procedures for sufficient representation of business operations and applicable industry rules and regulations
  • Modify the compliance manual to mirror  regulatory changes
  • Update plans and policies as required, including Business Continuity Plan, Ethics Policy, Anti-Money Laundering policy
  • Perform online registrations and memberships
  • File regulatory reports as required
  • Review website and promotional materials
  • Assist with annual compliance reviews
  • Assist firm self-examinations
  • Assist firm to prepare for regulatory examinations

 

FOCUSED SUPPORT

SDDco specializes
in two industries.

Our know-how and our network supports the financial services & tech industries.

We hold the right training and licensures to keep you in step and mitigate risk.

Our Credentials

SUCCESSFUL CLIENTS

SDDco supports
industry leaders.

We oversee back office functions so you can focus on your own clients.

Major banks, private funds, RIAs, BDs, and tech startups choose us.

Our Clients

TOP TALENT

SDDco is as good
as its great people.

Our CPAs, FinOps and
consultants are licensed,
experienced professionals.

Partner with us for start-ups and for ongoing accounting, compliance and tax work.

Our People

ONSITE OUTSOURCING

SDDco performs
services onsite.

Outsourced support with
SDDco isn’t out of sight.

We work in your space and for your team on a regular basis. Engage the expertise without the fulltime hire.

Our Praises

HIGH STANDARDS

SDDco observes
AICPA principles.

Our inaugural firm began
when two CPAs opened
a NYC office back in 1952.

We faithfully maintain the CPA standards: integrity, competency, confidentiality….

Our Group