The securities laws can be written obtusely and the definition of a qualified eligible person (QEP) may be one of the best examples of this.  There is no quick and easy definition of a what a QEP is so we are trying to make it as easy as possible to [...]

Practical guidance for CTA and CPO firms Commodity Trading Advisors (CTAs) and Commodity Pool Operators (CPOs) have been contacting me with greater regularity and we have decided to provide those firms with more detailed information on their registration and compliance requirements. Over the course of the next few weeks we [...]

CPOs Prohibited From Taking Loans From Commodity Hedge Funds The CFTC just recently approved a new NFA compliance rule which prohibits commodity pool operators (CPOs) from taking loans from the commodity pools which they manage. Additionally, if a CPO currently has some sort of a loan arrangement with their fund, [...]

Proposes Amendments to Compliance Rule 2-45 The National Futures Association (NFA) proposed new amendments to Compliance Rule 2-45 regarding prohibition of loans by pools to commodity pool operators and related parties.  The amendment states that no Member CPO may permit a commodity pool to use any means to make a [...]

NFAs Electronic Filing System Went Live Yesterday The NFAs new electronic filing system for CPO and CTA disclosure documents went live yesterday.  All NFA members are required to use the electronic system for filing their disclosure documents.   While I have not yet used the new system, it is expected to [...]

In two separate actions the NFA has effectively shut down two separate Commodity Pool Operators who were operating in the Northeast.  The press releases are reprinted below. **** For Immediate Release NFA takes emergency enforcement action against New York commodity pool operator February 9, Chicago – National Futures Association (NFA) [...]

CFTC Release Provides Guidance on Annual Report Requirements CFTC Rule 4.22(c) requires commodity pool operators to provide each investor in the commodity pool with certain information on an annual basis.  These Annual Reports must be provided to investors (generally in hard copy) within 90 days of the end of the [...]

Commodity Firms Need to Complete Annual Regulatory Information The NFA recently released a regulatory reminder to firms which are registered as commodity pool operators and/or commodity trading advisors.  The reminder reminds CPOs and CTAs that there are certain annual regulatory items which a firm must complete in order to remain [...]

I just came across this speech by a former Acting Chairman of the CFTC.  The speech discusses Commodity Pool Operators in the context of hedge funds.  The original speech can be found here.