Any firm that is currently claiming certain exemptions or exclusions from registration with the Commodity Futures Trading Commission (CFTC) as a commodity pool operator (CPO) or commodity trading advisor (CTA) is required to affirm its status with the National Futures Association (NFA) before March 2, 2015. You must affirm your exemption(s) or exclusion(s) before March 2, 2015, if you claim an exemption or exclusion from:
- CPO registration with respect to one or more funds you operate pursuant to CFTC Regulations 4.5, 4.13(a)(1), 4.13(a)(2), 4.13(a)(3) or 4.13(a)(5) or
- CTA registration under CFTC Regulation 4.14(a)(8).
The NFA’s Exemption System is now open and accepting affirmations of status. Any entity that does not affirm an exemption or exclusion by the March 2 deadline may be required to register with the CFTC. For registered CPOs, the automatic withdrawal of a pool’s exemption or exclusion will subject the CPO to the disclosure, reporting and recordkeeping requirements of the Commodity Exchange Act. For non-registered CPOs and CTAs, the resulting withdrawal may result in an enforcement action by the CFTC. Moreover, you should be aware that pursuant to NFA Bylaw 1101, NFA members are prohibited from doing business with any firm that is not properly registered. Thus, this could impact account relationships with futures commission merchants or the ability of any NFA member that is an investor from maintaining an investment with you.
You can complete the affirmation process on the NFA’s Exemption System at http://www.nfa.futures.org/NFA-electronic-filings/exemptions.HTML at any time prior to March 2, 2015. Once logged in, you will need to identify each exemption or exclusion you are affirming.
You can view the full NFA notice, including instructions for completion of the affirmation process and FAQs for Exemptions here: