Written by Robert Quinn
Founder & CEO
Given the recent market volatility, the National Futures Association (“NFA”) has issued a Notice to Members (I-22-10) reminding Commodity Pool Operators (“CPOs”) of their obligations under Compliance Rule 2-50. The rule requires CPOs to notify the NFA within one business day if:
(a) they operate a commodity pool that is unable to meet a margin call
(b) they operate a commodity pool that is unable to satisfy redemption requests in accordance with its subscription agreements
(c) they operate a commodity pool that has halted redemptions and the halt on redemptions is not associated with pre-existing gates or lockups, or a pre-planned cessation of operations
(d) they receive notice from a swap counterparty that a pool the CPO Member operates is in default
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