Category: Commodity Pool Operators

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CBOE and CME Self-Certify Bitcoin Futures, Cantor Self-Certifies Bitcoin Binary Options and NFA Issues Investor Alert

It was a busy morning at the intersection of derivatives and virtual currencies.  Here is an overview of what happened and some thoughts about what it means for the world of virtual currencies.… Continue Reading

CFTC Grants CPO/CTA No-Action Relief to Oil and Gas Fund and Its Operating Subsidiaries

In CFTC Letter 17-48, the Division of Swap Dealer and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (the “CFTC”) indicated that it would not recommend enforcement action against the manager of a oil and gas fund and its subsidiaries for failure to register as a commodity pool operator (“CPO”) or a commodity … Continue Reading

Attention Non-U.S. Funds and Advisers: Registration Exemption for Offshore CPOs, CTAs and IBs That Use Non-Cleared Derivatives

On February 12th, the Division of Swap Dealer and Intermediary Oversight (the “Division”) of the United States Commodity Futures Trading Commission (“CFTC”) issued CFTC Letter No. 16-08.  This no-action letter clarifies that an intermediary located outside of the United States (a “Foreign Intermediary”) will not need to register as commodity pool operator (“CPO”), a commodity … Continue Reading

CPOs and CTAs: Affirm Exemptions Before February 29, 2016

Happy New Year! As a reminder, any person claiming certain relief from the requirement to register as a commodity pool operator (CPO) or commodity trading advisor (CTA) must submit an annual affirmation to the National Futures Association (“NFA”) by February 29, 2016. In particular, such affirmation must be filed by any person relying on the exemption … Continue Reading

Attention Hedge Funds: NFA Updates EasyFile System to Allow For CPO Delegation Under CFTC No-Action Letters 14-69 and/or 14-126

On April 8th, the National Futures Association (“NFA”) issued its Notice to Members I-15-13 (the “NTM”), which will be of interest to: 1) Any commodity pool operator (CPO) relying on CFTC No-Action Letters 14-69 or 14-126 in order to delegate certain of their oversight responsbilities as a CPO to another registered CPO; and 2) Any NFA … Continue Reading

Attention CPOs: NFA Now Requires Cover Page and An Additional Financial Item

On Februrary 10th, the National Futures Association (“NFA”) announced that it was making two changes to its EasyFile system.  Both changes relate to the information that is required to be filed by a commodity pool operator (CPO) in respect of annual pool financial statements.  In particular, a CPO must now:… Continue Reading

NFA Notice to Members I-15-02: Affirm CPO/CTA Exemptions and Exclusions by March 2nd, NFA Members Given Tools to Monitor Affirmations

On January 15th, the National Futures Association (“NFA”) issued its Notice to Members I-15-02 (the “NTM”). The NTM will be of interest to NFA Members, such as futures commission merchants (“FCMs”) and introducing brokers (“IBs”), and any entity in a mutual or hedge fund complex that has not yet affirmed its status for calendar year … Continue Reading

CFTC Letter No. 14-126: CPO Registration Not Required, If Responsibilities Delegated to Registered CPO – Relief Self-Executing

In an October 15th letter, the CFTC’s Division of Swap Dealer and Intermediary Oversight (“DSIO”) issued self-executing no-action relief that allows a person to not register as a commodity pool operator (“CPO”), if that person (the “Delegating CPO”) delegates certain of their responsibilities as a CPO of a commodity pool to another person who is registered as a … Continue Reading

WSJ Article Asks, “Is Your Charity a Commodities Trader?” DR2 Answers, “There Is Precedent For, No!”

The Wall Street Journal recently ran an article that focused on whether commodity pool operator registration is required for certain charities that use derivatives as part of their investment and risk management programs  (see Is Your Charity a Commodities Trader?, available here – subscription required).  This posting looks at the potential issue and the actual solution raised by the WSJ article. WHAT … Continue Reading

Swap Execution Facility to Trade Bitcoin Swaps

TeraExchange, LLC (TeraExchange), a swap execution facility (“SEF”) registered with the Commodity Futures Trading Commission (“CFTC”), has announced it will begin trading a non-deliverable forward based upon the U.S. Dollar price of bitcoin (“Bitcoin Swap”). TeraExchange filed a self-certification application for the Bitcoin Swap with the CFTC on September 11, 2014 and issued a press … Continue Reading