From the category archives:

Commodities and Futures

Exemptive Relief from CPO Annual Audit Requirement

August 23, 2010

Managers starting a commodity fund at the end of the year may seek relief from annual audit requirement CFTC Regulations 4.22(c) and (d) require that each registered CPO file a certified annual report with the CFTC and distribute copies to pool participants within 90 calendar days after the pool’s fiscal year (“audit requirement”).  The principal [...]

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Litigation Statement for CTA and CPO Disclosure Documents

August 20, 2010

One of the more important requirements with respect to drafting the CTA and CPO Disclosure Documents is making sure that all appropriate litigation statements are included in the documents.  Under CFTC Regulations 4.24 (CPOs) and 4.34 (CTAs) the manager is required to disclose the litigation history of: (i) the management company, (ii) principals of the [...]

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NFA Changes Post CFTC Audit

August 17, 2010

The results of the CFTC’s audit of the NFA were released a few weeks ago and we have already begun to see a few changes to the way the NFA operates. Access to BASIC Security Manager Previously newly formed entities which were registering with the CFTC could start the registration process prior to formally being [...]

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Emerging CTA Contest

August 5, 2010

Futures Magazine Looks to Profile “Hot New CTAs” Futures magazine is looking to profile new CTAs for their annual feature entitled “Hot New CTAs.”  The requirements for potential inclusion in the survey include: have managed customer funds for at least one year as of the end of August have less than $25 million of AUM [...]

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Dodd-Frank Establishes New Laws Regarding Spot Commodities and Spot Forex

August 1, 2010

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Act”) has changed a number of laws in all of the securities acts including the Commodity Exchange Act.  Two specific changes deal with the certain transactions in commodities on the spot market.  Specifically, Section 742 of the Act deals with retail commodity transactions.  In this section, the [...]

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Commodity Position Limits After Dodd-Frank

July 30, 2010

CFTC to Establish Energy Position Limits The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Act”) includes a number of key provisions which will affect the investment management industry in important ways. For example, the Act includes a mandate for the CFTC to impose position limits across different markets, including the energy markets, the agricultural [...]

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CFTC Issues Report on NFA Registration Process

June 26, 2010

Report Indicates Many Areas Needing Improvement The CFTC registration process is handled almost exclusively by the NFA and last year the CFTC audited the NFA to see how successful the organization was at conducting the registration process.  The audit report, issued this week, indicates that the NFA needs to improve on many different areas.  One [...]

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Federal Cap and Trade System and RPS Standards on the Horizon

June 15, 2010

On June 5, 2010, the South Asian Bar Association hosted the 2010 NAPABA Western Regional Conference in San Francisco.  One panel, entitled “Green 2 Green: Carbon Credits, Renewable Energy Certificates and the New Markets Driving the Clean Energy Economy,” addressed the failure of existing markets to price carbon and other greenhouse gas (GHG) emissions and [...]

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CTA and CPO Registration Form 8-R Changes

June 11, 2010

Fingerprint Information Now Required in Form 8-R As discussed below, the information which is included on an AP or Principal’s Fingerprint Cards (sex, race, eye color, etc) will now be part of the NFA Form 8-R.  Additionally, the NFA will now make certain notifications to NFA member firms with respect to their application. The full notice [...]

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Disclosure Document Guidance for CTAs and CPOs

May 12, 2010

NFA Provides Overview of Manager Background (Bio) Disclosure Requirements CFTC registered CTAs and CPOs need to have their disclosure documents reviewed by the NFA prior to using those documents to solicit clients or investors.  As any manager who has gone through this NFA review process understands, the NFA will take their time to scrutinize the [...]

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