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The CFTC had previously issued no-action letter 12-14 as to limited types of securitization vehicles. (Link here to the related news item, which describes the prior letter and links to it.) The CFTC has now issued this related no-action letter (i) expanding the scope of the securitization vehicles that are not considered to be commodity pools (and thus whose managers by definition would not be commodity pool operators required to register as such); (ii) providing conditional no-action relief to vehicles that last issued securities before October 12, 2012; and (iii) extending the registration

The SEC charged a business development company (BDC) and three of its officers with overstating the fund's assets during the financial crisis. The fund's asset portfolio consisted primarily of corporate debt securities and investments in collateralized loan obligations (CLOs). According to the order, the BDC's valuation procedures should have been consistent with the requirements of FAS 157, which prioritizes market value over other measures of value. Instead, the fund had treated all of its securities as illiquid, notwithstanding that many of the securities did trade, and valued the