Regulatory Relief

CPO registration relief. The Division of Swap Dealer and Intermediary Oversight took a no-action position with respect to the operation of certain collective trading vehicles by either of two corporations (A and B) entirely controlled by a non-profit corporation (C) that is the coordinating organization for a denomination’s churches. The collective trading vehicles would commingle assets of church plans (within the definition of Regulation 4.5), together with endowments and other assets of certain non-profit corporations entirely controlled by C. Although the collective trading vehicles would be pools, the Division believed that requiring commodity pool operator registration would serve no substantial regulatory purpose. (3/19/2014) CFTC Letter No. 14-28.

Registration relief for educational purposes. The Division of Swap Dealer and Intermediary Oversight confirmed the availability of CFTC Letter 00-10, which provides commodity pool operator registration relief to a university’s cooperative extension service, its agents and employees, permitting them to offer courses that would allow certain students to trade commodity interests through participation in a trading club.(3/18/2014) CFTC Letter No. 14-29.


Auditor guidance. The CFTC has released new guidance interpreting and explaining the auditor independence requirements under regulation 1.16 of the CFR. The regulations, published last November, require futures commission merchants holding customer funds to implement greater customer protection standards. (3/28/2014) CFTC press release.

Other Developments

Request for public comment. The CFTC issued a request for public comment on swaps data recordkeeping and reporting requirements. Part 45 of the CFR requires reporting entities to submit swap transaction data via electronic reporting to the agency for analysis. (3/19/2014) Request.