Archives: Commodity Pool Operator (CPO) / Commodity Trading Adviser (CTA)

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CFTC Staff Provides JOBS Act Harmonization Exemptive Relief

Attention hedge funds, private equity funds, venture capital funds and other private funds. This evening, the CFTC Division of Swap Dealer and Intermediary Oversight issued CFTC Letter 14-116 providing exemptive relief (for some funds) from the general solicitation restrictions in CFTC Rules 4.7 and 4.13(a)(3) to harmonize the CFTC rules with the SEC rules changes arising from the Jumpstart Our Business Startups Act. Until now, many private funds have been unable to take advantage of provisions in the JOBS Act permitting general solicitation of investors due to restrictions in CFTC Rules 4.7 and 4.13(a)(3).… Continue Reading

Attention Mutual Funds–Potential Relief for CPO and CTA Regulation in the 2014 CFTC Reauthorization Act

As the second part of our ongoing series on the 2014 CFTC Reauthorization Act, we wanted to highlight what could become important relief for mutual funds and their investment advisers with respect to registration as commodity pool operators or commodity trading advisers.… Continue Reading

Reminder for Registered CTA’s: Form NFA-PR Due November 14th

By Crystal Travanti and Tom Watterson In April of this year, the NFA issued a notice to its members introducing a new quarterly filing requirement for CTAs, Form NFA-PR. Each registered CTA with a reporting requirement under CFTC Regulation 4.27 must file NFA Form PR on a quarterly basis with the NFA within 45 days … Continue Reading

Reminder for Investment Managers of RICs of Form CPO-PQR Filing Requirements

By Tom Watterson In amending the CPO/CTA registration rules in February of 2012, the CFTC amended CFTC Rule 4.27 to require registered CTAs and CPOs to report information and data to the CFTC on Forms CTA-PR and CPO-PQR. In addition NFA rule 2-46 requires those with reporting obligations under CFTC Rule 4.27 to report Form NFA-PQR. … Continue Reading

NFA Notice I-12-20: (Soon to Be Former) CFTC Rule 4.13(a)(4) Claimants Can Now Pre-File For Exemptions Available Under Rule 4.7, 4.12 or CFTC Advisory 18-96

ATTENTION INVESTMENT FUNDS RELYING ON CFTC RULE 4.13(a)(4) – As you are most likely aware, the "4.13(a)(4)" exemption from CPO registration is on regulatory life support that will on 31 December 2012. On that date, any party relying on 4.13(a)(4) exemption will need to comply with the de minimis exemption from CPO registration under CFTC … Continue Reading

Swap Firms and Related Proficiency Requirements: A “Q&A” on the NFA’s Proposed Amendments to Bylaw 301 and Rules 401 and 402

On August 22nd, the National Futures Association proposed amendments to NFA Bylaw 301 and Registration Rules 401 and 402 regarding swaps activity eligibility and proficiency requirements. The effect of these amendments will be to conform the particular rules in question to the requirements that apply to other types of derivatives trading activity (futures, retail forex), … Continue Reading

Breaking: CFTC Division Publishes a Q&A on Rule 4.5 and 4.13(a)(3)

It is available by clicking here. Our personal favorite: Q: Does bona fide hedging include equitization of cash or risk management? A: The Commission specifically stated in the preamble to the final rules that equitization of cash and risk management are not properly included as bona fide hedging transactions for purposes of Regulation 4.5. That’s … Continue Reading

CFTC Rule 4.5 and 4.13(a)(4) Update: DCIO Denies No-Action Letter Relief Requested by ICI, IAA, MFA & AIML; New Funds Granted Relief – Must File E-Notice

OVERVIEW On July 13th, the Division of Clearing and Intermediary Oversight (the "Division") of the CFTC issued a no-action letter to several investment management industry trade associations – the ICI, MFA, IAA and AIML (collectively, the "Associations"). The effect of the letter is to permit mutual funds and qualifying hedge funds launched after July 13, 2012 ("New … Continue Reading

A Focus on Offshore and Non-U.S. Fund Operators & Advisers: Regulatory Exemptions from Commodity Pool Operator (CPO) & Commodity Trading Advisor (CTA) Registration – CFTC Rule 3.10

Introduction In light of the implementation of Title VII of the Dodd-Frank Act by the U.S. Commodity Futures Trading Commission ("CFTC") and consequential regulatory overhaul of the U.S. derivatives markets, many offshore investment funds and their advisers have expressed an interest in available exemptions from the registration requirements that apply to a commodity pool operator … Continue Reading

Attention Hedge Funds, Mutual Funds and Investment Advisers: Comment Period Open for CFTC Rules 4.5, 4.13 and 4.14

The Notice of Proposed Rulemaking has been published in the Federal Register (available here)  in respect of the proposed changes to CFTC Rules 4.5, 4.13 and 4.14 (i.e., fund and adviser exemptions from CPO and CTA registration). The comment period is open until April 12th. Thoughts will be forthcoming soon… Good day. Good writing. TSR… Continue Reading

Attention Funds and Advisers: CFTC issues NOPR for Rule 4.5, 4.13 and 4.14, et. al.

Just last night, I sat back and said to myself, "I wish that the CFTC would issue another 140+ page NOPR." Well, today they posted the NOPR in respect of CFTC Rules 4.5, 4.13, and 4.14. It has not yet been published in the Federal Register, so the comment period is not yet open. And, TSR … Continue Reading

Attention Private Hedge Funds, Registered Investment Companies and Registered Investment Advisers – The CFTC and SEC Have Proposed Rules That Will Affect You

Links to Relevant Documents; Overview of Relevance A joint SEC/CFTC Rule Proposal for Reporting on Form PF by Investment Advisers,  Commodity Trading Advisors, and Commodity Pool Operators to Private Funds available here   A Press Release and a Fact Sheet for new CFTC rule proposals that will effect mutual funds (registered investment companies), hedge funds, registered investment advisers, commodity … Continue Reading