CFTC proposes rule to amend certain compliance requirements

The Commodity Futures Trading Commission (CFTC) proposed a new rule to amend a provision that provides exemptions from certain compliance requirements for commodity pool operators (CPOs).

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Specifically, 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.

Among the proposed changes, it would increase 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. In addition, it would establish new minimum disclosure requirements for CPOs and commodity trading advisors (CTAs) operating pools and trading programs under CFTC Regulation 4.7.

Further, the amendments are 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.

Finally, there are 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 may be submitted electronically through the CFTC Comments online process.