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Practice Management > Marketing and Communications

Rule Modernization from CFTC Re: CPOs, CTAs

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WASHINGTON (–The Commodity Futures Trading Commission announced that it has modernized a number of rules regarding commodity pool operators and commodity trading advisers.

In a statement, James E. Newsome, CFTC chairman, said the rules were part of the implementation of the Commodity Futures Modernization Act of 2000.

“I hope that these improved rules will generate additional interest in the risk management tools offered by the futures market, which help a great number of businesses, investors and financial institutions to protect themselves against volatility in commodity prices, interest rates, foreign exchange rates and stock prices,” Mr. Newsome said.

The changes announced include: additional exemptions from the CPO and CTA registration requirements for those entities that have limited futures activity or that restrict participation to sophisticated persons; improving communications by CPOs and CTAs with prospective and existing pool participants and their clients, including electronic communications; the elimination of duplicative regulatory requirements for master/feeder fund structures. The rule changes also address certain issues relating to calculation of presentation of past performance by CPOs and CTAs.

The amendments have been published in the Federal Register, and most of them are effective immediately.

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