May 26, 2020

CFTC Relief to Use Additional Third-Party Recordkeepers

On September 8, 2014, the DSIO issued CFTC Letter No. 14-114 (Letter 14-114), which grants exemptive relief from the main office requirement of CFTC Rules 4.7(b)(4) and 4.23 to allow CPOs to use any third-party recordkeeper. Prior to the relief set forth in Letter 14-114, CPOs were only allowed to use the specific recordkeepers enumerated in "Harmonization of Compliance Obligations for Registered Investment Companies Required to Register as Commodity Pool Operators."

To be eligible for such relief, the following requirements must be satisfied:

  • the CPO's timely access to such records must be maintained, such that the CPO will satisfy the obligations of the applicable CFTC rules, particularly with respect to providing such records for inspection; and

  • the CPO must timely and completely file the statements required pursuant to CFTC Rule 4.7(b)(5) or 4.23(c), as applicable.

A link to Letter 14-114 can be found here.

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About this Author

Joseph Mannon, Investment Lawyer, Vedder Price Law Firm

Joseph M. Mannon is a member of Vedder Price P.C.’s Investment Services group.

Mr. Mannon focuses his practice on legal and compliance matters for investment advisers, mutual funds, closed-end funds and unregistered vehicles such as hedge funds, hedge fund of funds and other investment entities.  With regard to unregistered vehicles, he frequently counsels clients on fund formation and structuring matters for funds organized both in the United States and abroad.  He also counsels clients on issues relating to commodity trading advisers and...

Nicole M. Kuchera, Investment Services Attorney, Vedder Price law firm

Nicole M. Kuchera is an Associate at Vedder Price and a member of the Investment Services group in the firm’s Chicago office.

Ms. Kuchera counsels commodities, securities and derivatives professionals, such as hedge funds, investment advisers, commodity pool operators (CPOs), commodity trading advisors (CTAs), futures commission merchants (FCMs), retail foreign exchange dealers (RFEDs), introducing brokers (IBs), swap dealers (SDs), forex (FX) firms, proprietary trading firms, binary options trading firms and broker-dealers (BDs), in day-to-day legal matters. She also drafts private disclosure documents, subscription materials, compliance manuals, corporate documents, contracts/trade agreements and advertising materials; conducts and oversees blue sky due diligence, filings and rescissions; and provides guidance concerning master-feeder structures, domestic and foreign funds, and international offerings.