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CFTC Proposes Amendments to Certain Rules Governing CCO Duties and Annual Reports

On May 3, the Commodity Futures Trading Commission announced proposed rules amending its regulations regarding certain duties of chief compliance officers (CCOs) of swap dealers (SDs), major swap participants (MSPs) and futures commission merchants (FCMs; each, a Registrant). In addition, the proposed rules amend certain requirements for preparing and furnishing CCO annual reports on a Registrant’s compliance activities to the CFTC. Many of the changes seek to harmonize such regulations with the Securities and Exchange Commission’s parallel rules.

Among other changes, the proposed rules (1) clarify that CCOs are responsible for administering policies and procedures specifically related to a Registrant’s business as an SD, MSP and/or FCM (as applicable), and not all of a Registrant’s business that may otherwise be subject to CFTC regulation; (2) add a reasonableness standard to the steps a CCO must take to resolve certain conflicts of interest; and (3) make certain changes to the CCO annual report’s content and submission process. In addition, the proposed rules provide a definition of “senior officer” that is consistent with how the CFTC’s staff has generally interpreted that term in the past.

The comment period on the proposed rules will end 60 days after publication in the Federal Register.

The proposed rule filing is available here.

©2019 Katten Muchin Rosenman LLP


About this Author

Christian B. Hennion, Finance Attorney, Katten Muchin Law Firm

Christian B. Hennion concentrates his practice in financial services and asset management matters, including counseling fund managers, registered investment advisers and commodity trading advisors on both transactional and regulatory matters. Chris has advised a wide range of US and international managers, from start-ups to large institutions, regarding a variety of matters, including private fund launches and reorganizations, advisory engagements, Investment Advisers Act and Commodity Exchange Act compliance obligations, Securities and Exchange Commission (SEC) and Commodity Futures...


Timothy Kertland concentrates his practice on transactional, corporate and regulatory aspects of financial services matters. Timothy is able to provide legal services to a wide variety of clients including proprietary trading firms, hedge funds, broker-dealers, registered investment advisers, and commodity trading advisers.

While in law school, Timothy served as an editor of the Virginia Tax Review. As a first-year law student, he represented the University of Virginia School of Law at the National Transactional LawMeets Competition.