The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") extended no-action relief, which was granted previously in 2012 to a Dutch Commodity Pool Operator ("CPO") ("A"), from having to register as a CPO in connection with its operation of another Dutch pool that provides currency financing to borrowers in developing countries ("B"). The relief allows a non-U.S. "qualified eligible participant" and the only shareholder/participant in B ("C") to provide "B" with an "unfunded loan" guaranteed by the U.S. Government's development finance institution ("D") in excess of that which is permitted under the original 2012 no-action relief.
The CFTC summary states that such relief is being provided to a "CPO of a pool [composed] solely of sophisticated institutions that do not invest in the pool for the primary purpose of obtaining an investment return, but rather as part of their respective mandates to promote sustainable economic development to operate said pool without registering as a CPO."
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