CFTC Grants No-Action Relief to CPO from Registration Requirements
Commentary by Steven Lofchie
The CFTC Division of Swap Dealer and Intermediary Oversight granted a CPO no-action relief from the requirement to register as a CPO, so long as the requesting CPO delegates certain responsibilities under CEA Section 4m(1) to another registered CPO. The relief was granted notwithstanding the parties' inability to meet one of the conditions - that the "Delegating CPO" and the "Designated CPO" be under common legal control - and on the condition they remain jointly and severally liable for any violations of CEA and CFTC rules.
Commentary
The CFTC has several times granted similar no-action relief as to the requirement that the delegating and delegated CPOs be affiliates. There does not seem to be any strong policy basis for this condition, and thus it should be eliminated, so as to avoid the need for no-action requests.
Related Articles
-
The CFTC Division of Swap Dealer and Intermediary Oversight granted no-action relief to three commodity pool operators from certain registration and reporting requirements.