Commodity Pool Operators and Commodity Trading Advisors: Key CFTC Registration and Compliance Considerations

This outline was prepared by members of the Firm’s CFTC Working Group, which includes Geoffrey F. Aronow, Mana Behbin, John Holton Ken Kopelman, and Joshua Sterling.

In February 2012, the U.S. Commodity Futures Trading Commission (the “CFTC”) adopted final amendments to its rules governing commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”). Among other things, the CFTC determined to rescind Rule 4.13(a)(4) of its regulations, an exemption from CPO registration upon which many sponsors of private funds have relied. The CFTC also determined to impose new reporting requirements for registered CPOs and CTAs. In light of these developments, we have prepared an outline highlighting certain key considerations for private fund sponsors and managers that are evaluating whether they are required to register as CPOs or CTAs or whether they qualify for an exemption from registration.