MFA Requests CFTC Relief for Timing of CPO Registration

MFA submitted a comment letter to the Division of CFTC for interpretive relief for a commodity pool operator (CPO) exempt from registration under the CFTC's Section 4.13(a)(3) de minimis trading exemption transitioning to full registration status. MFA urged the CFTC to consider issuing interpretive guidance providing that a CPO that has filed an exemptive notice under Section 4.13(a)(3) may continue to operate the fund, taking positions that exceed the de minimis level, provided that the operator submits a notice to the CFTC of its intention to register and uses its best efforts to become registered as a CPO as promptly as reasonably practicable.

Cross-Reference(s): CFTC Rule Sec. 4.13(a)(3).

Lofchie Comment: The numerous new registration and regulatory requirements, many of which are uncertain as to both scope and timing - something which is also true of the CPO registration requirements - are outpacing the ability of market participants to keep up. (If you search on CPO/CTA by checkmarking the boxes on the left (and change the date indicator to 30 days), you will find discussion of other requests for exemptive relief from CPO registration, as well as a Cadwalader memo dealing with the registration of securitization vehicles).

View letter in full here (links externally to MFA website).