The CFTC deemed invalid the exemptive orders of 17 foreign entities after failing to comply with obligations outlined under such orders. Specifically, the CFTC stated that the foreign entities did not respond to a special call initiated by Division of Swap Dealer and Intermediary Oversight ("DSIO") under CFTC Rule 4.13 ("Exemption from registration as a commodity pool operator.").
According to the CFTC, the entities claimed an exemption from CFTC Rule 4.13(a)(2). The exemption allowed for an entity to not register as a CPO if they (i) have more than 15 participants in the pool they operate at any time and (ii) receive total gross capital contributions for units of participation in the pools they operate or plan to operate in excess of $400,000. Additionally, persons claiming the exemption must respond to special calls to verify their eligibility in order to continue qualifying for the exemption.
Primary Sources
- CFTC Order: CPO Registration Exemptions
- CFTC Press Release: CFTC Invalidates CPO Registration Exemptions for 17 Foreign Entities
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