The Commodity Futures Trading Commission has granted no-action relief from commodity pool operator (CPO) registration requirements to three managers of related commodity pools where a fourth commonly owned and controlled entity acted as the “designated” CPO for all of the commodity pools managed by those managers and registered as a CPO with the CFTC.

In support of their request for no-action relief, each of the managers executed and submitted to the CFTC a written undertaking pursuant to which they agreed to be jointly and severally liable for the violation by any of them of the Commodity Exchange Act (CEA) or CFTC regulations in connection with the performance of the CPO function for any of the commodity pools. The managers also represented in connection with the no-action request that (1) none of the managers is subject to a statutory disqualification under Section 8a(2) or 8a(3) of the CEA and (2) all management authority over each of the commodity pools had been delegated to the registered CPO entity.

A copy of the no-action letter can be found here.