June 16, 2004

NFA will soon offer IBs that file the 1-FR-IB form an electronic alternative to WinJammer for filing financial statements

In an effort to provide our Members with more efficient and cost-effective ways to meet their regulatory requirements, NFA will soon offer IBs that file the 1-FR-IB form an electronic alternative to WinJammer for filing financial statements. NFA has submitted the necessary rule changes relating to the new system to the CFTC and we anticipate approval shortly. We will make the Easy File system available to you by July 1, 2004 so you may use it for June 30, 2004 financial statements, which are due to NFA on or before July 26, 2004. This is the first of several notices you will receive about Easy File.

As you know, submitting financial statements electronically allows you to deliver your statements in a timely manner and NFA to review those statements expeditiously. Although the WinJammer software offers several benefits, many IBs have technical difficulties using the system. Therefore, NFA has developed a new Web-based system, called Easy File, to address those problems. Here are some of the benefits of the new Easy File system:

1. There is no software to download or install; therefore it's easy to set up and use.
2. You can submit your financial statement anywhere you have Internet access.
3. Your information is entered directly into NFA's database, so there's no e-mail to send as you do under WinJammer.
4. You know immediately if your statement has been successfully received by NFA.
5. You have the ability to view or print prior statements.
6. Your existing security access to NFA's systems gives you the authority to authorize the users of the system.

For your convenience, we will provide access to the Easy File system through our Online Registration System ("ORS"). Your firm's Security Manager will designate in ORS those individuals who are authorized to enter and/or submit financial statements for the firm. A separate user ID and password will be assigned to each person designated by the Security Manager. We will send you further details about accessing the system shortly. In the meantime, we encourage you to ensure that you have a Security Manager designated in ORS and that the Manager's password to access the system is current.

If you have any questions regarding Easy File, please contact Erin Mattes at (312) 781-2236, John Brand (312) 658-6560 or John Brodersen (312) 781-2226.