Rules Relating to the Operations and Activities of Commodity Pool Operators and Commodity Trading Advisors and to Monthly Reporting by Futures Commission Merchants

The disclosure, filing, and recordkeeping requirements within part 4 of the Commission’s regulations were established to assist customers, to facilitate the Commission and the National Futures Association (NFA) in monitoring compliance with the part 4 rules, and to enable the Commission to better monitor the market risks posed by the Commission’s registrants. The information collections are necessary to enable the Commission and NFA to accomplish the purposes of the compliance regime set forth in part 4 of the Commission’s regulations. The Commission is adopting amendments to Commission regulation 4.7, which provides exemptions from the disclosure, periodic reporting, and recordkeeping requirements discussed above, with respect to those registered CPOs and CTAs who solicit and offer their commodity pools and advisory programs solely to financially sophisticated individuals and entities referred to by the regulations as, “qualified eligible persons” (QEPs). Such CPOs and CTAs must file a claim for each pool or trading program they offer and operate, pursuant to Commission regulation 4.7(d), that also specifies which of the exemptions the intermediary wishes to utilize. The Final Rule, as adopted, amends Commission regulation 4.7 by adopting the proposed increases to financial thresholds in the QEP definition, and adding an optional monthly account statement schedule for 4.7 pools investing in third-party funds, pools, or collective investment vehicles, in a manner consistent with routinely issued Commission staff exemptive letter relief.

The latest form for Rules Relating to the Operations and Activities of Commodity Pool Operators and Commodity Trading Advisors and to Monthly Reporting by Futures Commission Merchants expires 2026-12-31 and can be found here.