On December 21, 2018, the Division of Market Oversight (DMO) of the Commodity Futures Trading Commission issued Letter 18-33 responding to a request for relief from compliance with certain position aggregation requirements under CFTC Regulation 150.4(b)(2)(i)(D).

CFTC Regulation 150.4(b)(2) provides an owned-entity exemption from aggregation. Any person with an ownership or equity interest in an owned entity of 10 percent or greater generally need not aggregate the accounts or positions of the owned entity with any other account or position such person is required to aggregate, provided that such person and the owned entity meet the conditions (A) through (E) of 150.4(b)(2)(i) (firewall conditions). Subparagraph (D) of the regulation prohibits the sharing of employees that control the trading decisions of either the person or the owned entity.
Continue Reading CFTC Issues No-Action Relief From Certain Position Aggregation Requirements

On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission a proposed Interpretive Notice to NFA Compliance Rule 2-9, which would provide commodity pool operators with guidance on designing and implementing an adequate system of internal controls.

On January 31, the NFA issued Notice I-19-03 announcing the recent adoption of

As part of its LabCFTC initiative, the Commodity Futures Trading Commission issued a Request for Input (RFI) to deepen the CFTC’s understanding of the technology, mechanics, and markets for Ether and its use on the Ethereum Network. In particular, the RFI seeks to understand similarities and distinctions between Ether and Bitcoin (as well as other

On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission a proposed Interpretive Notice to NFA Compliance Rule 2-9, which would provide commodity pool operators (CPOs) with guidance on designing and implementing an adequate system of internal controls. Specifically, the Interpretive Notice requires CPOs to implement an internal controls system that is designed to protect customer funds and ensure the reliability of the CPO’s books and records and compliance with CFTC and NFA requirements. This includes adopting and implementing written policies and procedures that fully explain the CPO’s internal controls system and maintain records that support the implementation and effectiveness of that system.
Continue Reading NFA Proposes Interpretive Notice Regarding CPO Internal Controls Systems

On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission for review and approval proposed amendments to various NFA Compliance Rules and four NFA Interpretive Notices to incorporate swaps into these rules and notices.

Specifically, the NFA proposal would amend the following Compliance Rules:
Continue Reading NFA Proposes Amendments Incorporating Swaps into Compliance Rules and Interpretive Notices