The Commodity Futures Trading Commission (“CFTC”) requires any person that claims an exemption from commodity pool operator (“CPO”) registration under CFTC Rule 4.13, including most notably Rule 4.13(a)(3), an exclusion from the CPO definition under Rule 4.5, or an exemption from commodity trading advisor (“CTA”) registration under Rule 4.14(a)(8), to annually affirm the applicable notice of exemption or exclusion within 60 days of the calendar year end. Affirmations for the current cycle are due no later than February 29, 2020.
A CPO or CTA subject to the annual affirmation requirement who fails to file such annual affirmation by February 29, 2020 will have its exemption or exclusion automatically withdrawn. Thus, CPOs and CTAs are encouraged to file their annual affirmation(s) as soon as possible, and in any event before this deadline, to avoid the potential adverse impacts of automatic withdrawal of the applicable notice of exemption or exclusion.
The annual affirmation process can be completed by accessing the National Futures Association’s (“NFA’s”) Exemption System on its website. For additional detail, CPOs and CTAs may wish to refer to NFA’s recent Notice to Members regarding the annual affirmation requirement, available here.