Wed, Oct 7, 2015
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. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with

  4. A hedge fund strategy that seems to have fizzled[more]

    From The hedge fund strategy that has attracted the most money this year is on course to cause some of the biggest losses for investors, in the latest example of the dangers of going with the crowd. Institutions and individuals have piled an estimated $20 billion (Dh73 billion) into ma

  5. Hedge fund Barnegat survives September’s market selloff[more]

    Komfie Manalo, Opalesque Asia: Bob Treue’s $679 million Barnegat Fund proved resilient after another month of market letdown as the hedge fund gained 2.2% last month, bringing its year-to-date gains to 2.8%. Treue said in his monthly report to i