Advertisement

April 18, 2014

CFTC Issues No-Action Relief from CPO Registration

The Division of Swap Dealer and Intermediary Oversight (DSIO) of the Commodity Futures Trading Commission issued three no-action letters granting relief from commodity pool operator (CPO) registration for operators of certain funds of funds, family offices and business development companies (BDCs). In the first letter, DSIO provided relief to any operator of a fund of funds that, among other things, does not know and could not have reasonably known that the fund’s indirect exposure to commodity interests exceeds the levels prescribed in CFTC Regulations 4.5 or 4.13(a)(3)(ii)(A) or (B). In order to obtain relief, an interested party must submit a claim to the CFTC prior to December 31, 2012. Such relief is available until the later of June 30, 2013, or six months after the DSIO issues revised guidance on de minimis calculation thresholds in Regulations 4.5 and 4.13(a)(3). The no-action letter regarding funds of funds is available here.

The second letter provides no-action relief to any operator of a family office, as defined by the Securities and Exchange Commission, if the eligible operator files for relief before December 31, 2012. The no-action letter regarding family offices is available here.

Pursuant to the third no-action letter, an operator of a BDC that is regulated by the SEC as such is also exempt from CPO registration under certain circumstances. An eligible operator of a BDC must file a claim with the CFTC before December 31, 2012, in order to obtain relief. The BDC no-action letter is available here.

©2014 Katten Muchin Rosenman LLP

About the Author

Kenneth M. Rosenzweig, Katten Muchin Law Firm, Financial Institutions
Partner

Kenneth M. Rosenzweig focuses his practice on financial services matters, with an emphasis on the trading and clearing of financial instruments. Ken represents derivatives clearing organizations, designated contract markets and swap execution facilities, in addition to futures commission merchants, banks and other commercial participants in the exchange-traded and over-the-counter derivatives markets.

312-902-5381

About the Author

James M. Brady, Katten Muchin Law Firm, Finance Attorney
Associate

James Brady concentrates his practice in financial services matters.

312-902-5362

Boost: AJAX core statistics

Legal Disclaimer

You are responsible for reading, understanding and agreeing to the National Law Review's (NLR’s) and the National Law Forum LLC's  Terms of Use and Privacy Policy before using the National Law Review website. The National Law Review is a free to use, no-log in database of legal and business articles. The content and links on www.NatLawReview.com are intended for general information purposes only. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.  

Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The National Law Review is not a law firm nor is www.NatLawReview.com  intended to be  a referral service for attorneys and/or other professionals. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional.  NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 

Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Statement in compliance with Texas Rules of Professional Conduct. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials.

The National Law Review - National Law Forum LLC 4700 Gilbert Ave. Suite 47 #230 Western Springs, IL 60558  Telephone  (708) 357-3317 If you would ike to contact us via email please click here.