The Commodity Futures Trading Commission today published a Notice of Proposed Rulemaking seeking public comments on amendments to part 4 of the CFTC’s regulations. These amendments address registration requirements for commodity pool operators and commodity trading advisors, and the proposed rule aims to reduce duplicative and overlapping regulation.
“By continuing to address overly burdensome and duplicative rules for its registrants, the CFTC is delivering on its mandate to promote U.S. market competitiveness,” said Chairman Michael S. Selig. “This proposal is yet another step to unwind overregulation and cut red tape for American businesses while still preserving market integrity.”
The proposed rule specifically would:
- Add an exemption from CPO registration for certain investment advisers registered with the Securities and Exchange Commission in relation to commodity pools for which the participants are limited to certain sophisticated investors and which meet other conditions discussed in the proposal.
- Add a related registration exemption for CTAs.
- Increase the capital contribution threshold in the current CPO registration exemption for small commodity pools, also known as the small pool exemption, to reflect inflation.
Comments will be accepted for 45 days following publication in the Federal Register.
