National Futures Association reminds CPOs of their Obligations under Compliance Rule 2-50

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