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If I am operating a commodity pool, what must I do?
Any person falling within the definition of a CPO must register as a CPO with the CFTC unless there is a specific exemption available that excuses registration.
CFTC Rule 4.13(a)(1) provides an exemption from registration for a CPO who operates only one pool, does not receive any compensations for operating such pool other than ordinary administrative and operating expenses, and does not advertise in connection with such pool.
Rule 4.13(a)(2) provides another exemption for pools that do not intend to receive gross capital contributions in excess of $200,000 and do not have more than 15 participants.
A CPO claiming exemption must provide to each participant, and file with the CFTC and NFA, the written statement specified in Rule 4.13(b), maintain specified books and records, and comply with the other requirements of Rule 4.13.
In addition, Rule 4.5 provides an exclusion from the CPO definition for certain persons who operate certain "otherwise regulated'' trading vehicles (i.e., registered investment companies, insurance company separate accounts, bank trust funds, and certain pension plans) when they comply with certain operating criteria -- e.g., they commit no more than five percent of the fair market value of their assets to establish speculative futures and options positions (in addition to unrestricted positions) and they comply with the marketing, notice, and other requirements of CFTC Rule 4.5. A prescribed notice must be filed with the CFTC and the NFA to claim the relief available under Rule 4.5. |
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