Mon, Oct 24, 2016
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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa