On April 19, the Commodity Futures Trading Commission approved a final rule revising CFTC Regulation 160.5. The amended rule implements the Fixing America’s Surface Transportation Act’s (FAST Act) December 2015 statutory amendment to the Gramm-Leach-Bliley Act (GLB Act) by providing an exception to the requirement that certain futures commission merchants, retail foreign exchange dealers, commodity trading advisors, commodity pool operators, introducing brokers, major swap participants and swap dealers (each, a “covered person”) to provide annual privacy notices to their respective customers. (The obligation to provide an initial privacy notice is unchanged).
Continue Reading CFTC Approves Final Rule Providing Exception to Annual Privacy Notice Requirements
Commodity Pool Operators
CFTC’s Division of Swap Dealer and Intermediary Oversight Extends Exemptive Relief From CFTC Regulations 4.7 and 4.2 Requirement to Prepare Financial Statements in Accordance With US GAAP
By Christian B. Hennion & Timothy D. Nolan on
Posted in CFTC, Derivatives
On March 30, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued Letter 18-09, which granted exemptive relief to a commodity pool operator (CPO) of a foreign “Master Fund” and a US “Feeder Fund.” CFTC rules generally require that the financial statements a CPO is required to provide US pool participants, both in periodic reports and the annual report, must be prepared in accordance with US generally accepted accounting principles (US GAAP). However, where the pool is organized under the laws of a foreign jurisdiction, CFTC Rule 4.22(d)(2)(i) authorizes a CPO to compute and present financial statements in accordance with applicable accounting standards in that jurisdiction, including International Financial Reporting Standards (IFRS), subject to the conditions set out in the Rule.
Continue Reading CFTC’s Division of Swap Dealer and Intermediary Oversight Extends Exemptive Relief From CFTC Regulations 4.7 and 4.2 Requirement to Prepare Financial Statements in Accordance With US GAAP
NFA Issues Notice of Additional Questions for CPOs on the Annual Pool Financial Statement
By Ayah K. Sultan & Kevin M. Foley on
Posted in CFTC
On January 18, the National Futures Association (NFA) issued a Notice to inform commodity pool operators that two additional questions concerning virtual currency activities have been added to the cover page of the annual pool financial statement. The changes are effective for financial statements as of October 31, 2017 or later.
NFA’s Notice I-18-03 is…
NFA Proposes Late Filing Fee for NFA Form PQR and Form PR
Posted in CFTC
The National Futures Association (NFA) has proposed an amendment to NFA Compliance Rule 2-46 that would add a late filing fee of $200 for each business day that NFA Form PQR or Form PR is filed after the applicable deadline. NFA Form PQR and Form PR are required to be filed with the NFA on a quarterly basis by registered Commodity Pool Operators (CPOs) or Commodity Trading Advisors, respectively. For late NFA Form PQRs, the fee will apply at the CPO level and will not be assessed separately for each pool operated by the CPO that has a late filing.
Continue Reading NFA Proposes Late Filing Fee for NFA Form PQR and Form PR
CFTC to Host Roundtable on Commodity Pool Operator Risk Management Practices
By Kevin M. Foley on
Posted in CFTC
Commodity Futures Trading Commission staff will host a public roundtable on March 18 to discuss risk management practices by commodity pool operators, including: (1) risk management procedures in the operation of various types of commodity pools; and (2) risk management controls relating to investment risk, operational risk, and compliance or regulatory risk.
More information is …