NFA Amends Compliance Rule 2-45 Regarding Loans by Commodity Pools
The NFA filed proposed amendments to the Interpretive Notice to NFA Compliance Rule 2-45 ("Prohibition of Loans by Commodity Pools to CPOs and Related Entities") with the CFTC.
The proposed amendments to Compliance Rule 2-45 exclude from its prohibition two additional types of transactions between a pool and a wholly owned subsidiary of the pool for tax efficiency purposes generally. According to the NFA, neither of these transactions is the type of loan transaction that Compliance Rule 2-45 is designed to prohibit.
The NFA invoked the "ten-day" provision of the CEA and intends its proposed amendments to be made effective 10 days after the receipt of the rule filing by the CFTC, unless the CFTC notifies the NFA otherwise.