What is CFTC exemption?
Exemption provides relief from CPO registration in cases where the pool trades only minimal amount of futures. Generally, participations in the pool are not marketed as a vehicle for trading in the commodity futures or commodity options markets.
What is a qualified eligible person?
A “Qualified Eligible Person” is, as defined by the Commodity Futures Trading Commission, is an individual who has fulfilled the eligibility requirements for dealing in certain alternative investments such as futures, hedge funds, or commodity pools.
What is CPO exemption?
A fund manager that is exempt from CPO registration will not be required to become an NFA Member and will not be subject to NFA’s bylaws or compliance rules. The three available exemptions from CPO registration are commonly known as the: de minimis exemption. small pool exemption; and. investment club exemption.
Can a CTA accept customer funds?
A CTA Capital Requirement A CTA holds no funds, can’t control funds, and only maintains a connection with their customers through a revocable power of attorney in a managed account setting.
What is a 4.7 exemption?
Rule 4.7 ( 17 C.F.R. 4.7) makes available an exemption from certain Part 4 requirements with respect to the operators of commodity pools whose participants are limited to “qualified eligible persons” and with respect to commodity trading advisors who advise “qualified eligible persons,” as defined in the Rule.
What are CFTC regulations?
What Does the CFTC Regulate? The CFTC regulates the U.S. derivatives markets. This includes the commodity futures, options, and swaps markets as well as over-the-counter (OTC) markets.
What is a 4.7 Fund?
For those of you that have no idea what a 4.7 exemption is; filing a 4.7 exemption means that a CTA is exempt from certain regulations such as filing a Disclosure Document with the National Futures Association (“NFA”) – but in exchange for that relief, can only accept QEP investors (Qualified Eligible Investors, which …
What is a CTA CFTC?
A commodity trading advisor (CTA) is an individual or organization that, for compensation or profit, advises others, directly or indirectly, as to the value of or the advisability of trading futures contracts, options on futures, retail off-exchange forex contracts or swaps.
Who is exempt from CTA?
Section 4m(3) provides an exemption from CTA registration for a person: (1) who is registered with the Securities and Exchange Commission as an investment adviser; (2) whose business does not consist primarily of acting as a commodity trading advisor; and (3) who does not act as a commodity trading advisor to any …
How are hedge funds different from commodity pool?
Many hedge funds–private pools of activity managed capital–are commodity pools. However, instead of investing in stocks, commodity pools invest in a basket of commodity futures contracts and options. Futures contracts have standardized amounts and settlement dates and are traded on a futures exchange.
Can CFTC prosecute criminal violations?
Criminal activity involving commodity-related instruments can result in prosecution for criminal violations of the CEA and for violations of other federal criminal statutes, including commodities fraud, mail fraud, wire fraud and conspiracy.
Does CFTC have authority to prosecute criminal violations?
The CFTC Division of Enforcement investigates and prosecutes alleged violations of the Commodity Exchange Act and Commission regulations.