Written by Mark Buckley-Jones
Director
Commodity pool operators (“CPO”) and commodity trading advisors (“CTA”) are required by the CFTC to electronically file with the NFA annual notices of exclusion or exemption from registration. The NFA sent a reminder this week, please see below if you currently have entities operating under an exemption from CPO or CTA exemption
Any person that claims an exemption from CPO registration under CFTC Regulation 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), 4.13(a)(5), an exclusion from CPO registration under CFTC Regulation 4.5 or an exemption from CTA registration under 4.14(a)(8) is required to annually affirm the applicable notice of exemption within 60 days of the calendar year end, which is March 1, 2025, for this affirmation cycle.
Persons re-affirming an exemption under 4.13(a)(1), 4.13(a)(2), 4.13(a)(3) and 4.13(a)(5) will be required to attest that neither the person nor its principals has in its background any statutory disqualifications listed under Section 8a(2) of the Commodity Exchange Act.
Failure to affirm an active exemption from CPO or CTA registration will result in the exemption being withdrawn on March 3, 2025. For registered CPOs or CTAs, withdrawal of the exemption will result in the entity being subject to Part 4 Requirements regardless of whether the entity otherwise remains eligible for the exemption. For non-registrants, the withdrawal of the exemption may subject the person or entity to enforcement action by the CFTC, if either continues to operate without registration or exemption.
To complete the affirmation process, access the Exemptions System from the Electronic Filing Systems page on the NFA’s website.
