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 Bylaw 301(a)(iii) On June 9th, 2009, the National Futures Association (NFA)  submitted to the Commodity Futures Trading Commission (CFTC) proposed amendments to NFA’s Bylaw 301(a)(ii) regarding eligibility for membership.  The proposed addition states that if any member fails to have at least one principal that is registered [...]

Overview of Series 30 Exam The Series 30 exam is a National Futures Association sponsored exam which is required for those persons who are branch office managers of a NFA member firm (see our post on CPO and CTA Branch Office Information).  Generally if a NFA Member firm (such as [...]

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 [...]

Separately Managed Account Managers May Bunch Orders for Better Execution One reason why the hedge fund structure is so popular with investment managers is that a single investment strategy can be implemented in one account.  Separately managed account managers, however, often have multiple accounts and need to execute the same [...]

This past week and a half has proven to be a busy time for the CFTC’s enforcement divisions as a number of actions have been released to the public.  The four actions below showcase the unlawful and unsavory behavior of four groups.  Specifically, two of the actions below provide details [...]

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 [...]

CFTC Responds by Proposing Changes to CFTC Regulations Regarding Disclosure Documents The CFTC recently proposed a change to its regulations based on a request from the NFA.  The proposed regulations would require CPO and CTA disclosure documents to be submitted only online to the NFA for approval.  The CFTC is [...]

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.

As we announced earlier, the NFA promulgated rules which were approved by the CFTC which gave the NFA jurisdiction over retail off-exchange foreign exchange trading by its member firms.  What this essentially means is that if: (i) you are currently a NFA member (e.g. you have a commodity/ futures pool [...]