• NFA Requires Notification of CPO Delegation
  • April 14, 2015
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • In 2014, via CFTC Letters 14- 69 and 14-126, CFTC staff afforded self-executing relief from commodity pool operator (CPO) registration (subject to certain conditions) to persons who delegate their CPO responsibilities to registered CPOs. On April 8, the National Futures Association (NFA) issued Interpretive Notice I-15-13, which will require CPOs, when filing annual pool financial statements with the NFA, to indicate whether they serve as CPOs for a pool for which the relief afforded in Letter 14-69 or 14-126 has been invoked. To the extent that they do, the relevant pool would be classified as a “Delegated Pool” on the NFA’s BASIC system. (The BASIC system is the NFA’s database for tracking member information as well as information about market participants who have claimed an exemption from registration with the CFTC.) The “Delegated Pool” classification is intended to facilitate market participants’ compliance with NFA Bylaw 1101, which prohibits NFA members from transacting a futures business with persons who are not NFA members that are required to be registered with the CFTC.