CFTC Proposes Permanent Registration Relief To Certain Non-US Asset Managers

The amendments to the CFTC's registration rules will codify no-action relief that permits non-US asset managers to rely on an exemption from the requirement to register with the CFTC by virtue of trading uncleared swaps in the United States on behalf of non-US clients.

The US Commodity Futures Trading Commission (CFTC) provides an exemption from CFTC registration for certain intermediaries located outside the United States (Foreign Intermediaries).¹ This permits non-US asset managers to trade commodity interests (as defined in CFTC Regulation 1.3(yy)) on US exchanges on behalf of non-US customers without registering as a commodity pool operator (CPO) or commodity trading adviser (CTA).² Prior to the Dodd-Frank Act, the registration exemption for Foreign Intermediaries was unambiguous and provided a registration exemption as long as a Foreign Intermediary (1) was located outside the United States, (2) traded on behalf of persons located outside the United States, and