Reminder: action to be taken by 01 March 2018 to continue CPO and CTA exemptions
Managers claiming exemption or exclusion from CPO or CTA registration under certain CFTC Regulations must affirm their notice of exemption or exclusion by 01 March 2018.
Since February 2012:
- any Commodity Pool Operator (CPO) which claims an exemption or exclusion from CPO registration under the Commodity Futures Trading Commission (CFTC) Regulation 4.5 or Regulation 4.13 - including Rule 14.13(a)(3), or
- any Commodity Trading Advisor (CTA) which claims an exemption from CTA registration under Regulation 4.14(a)(8)
has been required to affirm their notice of exemption or exclusion annually within 60 days of the calendar year end (ie, by 01 March 2018).
Failure to affirm an active exemption or exclusion from CPO or CTA registration within this timeframe will result in the exemption/exclusion being automatically withdrawn.
For registered CPOs or CTAs, withdrawal of the exemption/exclusion would result in the firm being subject to Part 4 Requirements, whether or not the firm otherwise remains eligible for the exemption/exclusion.
Please note:
- affirmations must be made online via the National Futures Association Exemption System, and
- new filings made on or after 01 December 2017 do not require to be affirmed until March 2019.
A more detailed briefing on this development is available on the Seward & Kissel website.
