Fri, Jul 1, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

New CFTC rules add to buy-side firms’ growing compliance burden

Tuesday, December 18, 2012

Bailey McCann, Opalesque New York:

New rules for financial firms from the US Commodities Futures Trading Commission (CFTC) going into effect this month are requiring many firms to register as commodity pool operators. These new requirements are causing all types of firms to reconsider their activities in commodities in order to determine if the registration is worth it. However, even if a firm wants to claim that they are exempt, they will still have to register with the CFTC to claim the exemption.

In essence, firms will have to track – on a daily basis – their initial margin and net notional value when they make commodities trades in order to determine whether they meet the threshold for registration with the CFTC. If they do, they will have to add CFTC compliance to a growing list of regulations being imposed on alternative investment firms.

"The old exemption from registration prescribed by the CFTC was based on the types of investors that participated in the pool. As long as the participants satisfied the 'eligible person standard' of Regulation 4.7 of the Commodities Exchange Act (CEA), they were exempt," explains Matt Grinnell, Buy-Side compliance officer at Fidessa in an interview with Opalesque. Now, firms that meet the de minimus test for initial margin and net notional value will have to register regardless – and the clock is running out. Firms have until the end of this month to register with the CFTC.

"Private pool registration requires ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  2. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  3. Chesapeake Partners to liquidate hedge fund amidst 'hostile environment'[more]

    Komfie Manalo, Opalesque Asia: Chesapeake Partners Management, the hedge fund run by woman fund manager Traci Lerner said it would return investors’ money after 25 years because the market environment has become "hostile" to manage other people’s money, reported

  4. Europe - George Soros says Brexit has ‘unleashed’ a financial markets crisis, Brexit—what we know, Will the UK’s departure be a ‘soft-Brexit’ or a ‘hard-Brexit’?, Brexit: Six-point action plan for asset managers[more]

    George Soros says Brexit has ‘unleashed’ a financial markets crisis From Bloomberg.com: Britain’s decision to leave the European Union has “unleashed” a crisis in financial markets similar to the global financial crisis of 2007 and 2008, George Soros told the European Parliament in Bruss

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.