The CFTC has adopted a rule, Rule 170.17, requiring all registered introducing brokers (IBs), commodity pool operators (CPOs) and certain commodity trading advisors (CTAs) to become a member of a registered futures association. (National Futures Association (NFA) is currently the only registered futures association.)
With respect to CTAs, the new rule provides that a CTA must become a member of a registered futures association unless it is eligible for the exemption from CTA registration under CFTC Regulation 4.14(a)(9). CFTC Regulation 4.14(a)(9) provides an exemption from CTA registration to persons that do not direct client accounts or provide commodity trading advice based on, or tailored to, the commodity interest or cash market positions or other circumstances or characteristics of particular clients.
CFTC Rule 170.17 will be effective 60 days after publication in the Federal Register. However, the compliance date has been delayed to December 31 in order to provide each affected registrant time to review and possibly reorganize its business activities to assure compliance with NFA’s rules.
The CFTC’s release is available here.