Publications

On August 14, 2012, the Staff of U.S. Commodity Futures Trading Commission (“CFTC”) released guidance (“CPO/CTA FAQs”)  on the registration and compliance obligations of commodity pool operators (“CPO”) and commodity trading advisors (“CTA”).  Some key matters covered by the CPO/CTA FAQs include provision of temporary no action relief from registration for newly launched funds, guidance on compliance with the de minimis trading exemption under CFTC Rule 4.13(a)(3) and confirmation that fund-of-fund managers may continue to rely on the rescinded “Appendix A” guidance. 

In light of the rescission of CFTC Rule 4.13(a)(4)  and the inclusion of swaps  within the meaning of “commodity pool” and “commodity interests,” fund managers operating private funds deemed to be commodity pools, or providing advice relating to commodity interests, must now assess the registration requirements for CPOs and/or CTAs, and any available exemptions from such registration.   This Memorandum highlights the key responses in the CPO/CTA FAQs relevant to private fund managers.