CFTC Approves Conforming Amendments To Commodity Pool Advisor And Commodity Trading Advisor Regulations

On August 23, 2012, the Commodity Futures Trading Commission ("CFTC") approved conforming amendments to Part 4 of its regulations. Among other requirements, Part 4 requires the registration of commodity pool operators ("CPOs") and commodity trading advisors ("CTAs") unless such persons are otherwise excluded or exempted. The conforming amendments reflect changes made to the Commodity Exchange Act by the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank"). These conforming changes will become effective 60 days after their publication in the Federal Register.

The purpose of the amendments is to clarify the applicability of Part 4 regulations to swap activities. Although the CFTC is still considering whether, for all purposes of the CFTC's regulations, the term "commodity interest" would include "swaps," the amendment makes it clear that for Part 4 purposes, "commodity interest" includes "swaps." In particular, the amendment covers