CFTC Grants Three CPOs No-Action Relief from Registration and Quarterly Account Statement Requirements

The CFTC Division of Swap Dealer and Intermediary Oversight (the "Division") granted no-action relief to three CPOs from registration and the requirement to deliver quarterly account statements.

The Division granted relief (see here and here) to two CPOs from registration, provided that each CPO delegated its responsibilities under CEA Section 4m(1) to a registered CPO, subject to certain conditions. 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 - so long as they remain jointly and severally liable for any violations of the CEA and CFTC rules.

The Division also granted exemptive relief to a CPO from the requirement to deliver quarterly account statements within 30 days after the end of each quarter, pursuant to CFTC Rule 4.7(b)(2). The relief allows the CPO to instead distribute such statements within 45 days of the end of each month.