Release Number 8802-23
CFTC Approves Proposed Rule Regarding Exemptions from Certain Compliance Requirements for Commodity Pool Operators, Commodity Trading Advisors, and Commodity Pools
October 02, 2023
Washington, D.C. — The Commodity Futures Trading Commission today published a proposed rule that would amend CFTC Regulation 4.7, a provision that provides exemptions from certain compliance requirements for commodity pool operators (CPOs) with respect to commodity pool offerings to qualified eligible persons (QEPs) and for commodity trading advisors (CTAs) with respect to trading programs advising QEPs.
The proposed rule would amend various provisions of CFTC Regulation 4.7 that have not been updated since the rule’s original adoption in 1992, including the following:
(1) Increases to the ‘Portfolio Requirement’ monetary thresholds in CFTC Regulation 4.7(a)(1)(v) to account for the effects of inflation over the last three decades;
(2) New minimum disclosure requirements for CPOs and CTAs operating pools and trading programs under CFTC Regulation 4.7;
(3) Amendments designed to codify routinely issued exemptive letters allowing CPOs of Funds of Funds operated under CFTC Regulation 4.7 to choose to distribute monthly account statements within 45 days of the month-end; and
(4) Technical amendments to CFTC Regulation 4.7 designed to improve its efficiency and usefulness for intermediaries and their prospective and actual QEP pool participants and advisory clients, as well as the general public.
The comment period will be open for 60 days after publication in the Federal Register.
Comments must be in writing and received within 60 days of the proposed rule’s publication in the Federal Register. Comments may be submitted electronically through the CFTC Comments online process.
All comments received will be posted on CFTC.gov.