CFTC Restores Registration Exemption For Many Private Fund Managers

The regulatory framework governing the intersection of derivatives markets and the private fund industry has reached a pivotal inflection point. On December 19, 2025, the Market Participants Division of the Commodity Futures Trading Commission (CFTC) issued no-action relief that effectively restores the CFTC Rule 4.13(a)(4) commodity pool operator (CPO) exemption, which was rescinded in 2012. Rulemaking to restore the exemption may follow, but the no-action relief is immediately applicable.

Many private fund managers will be able to rely on the restored exemption, including managers who registered with the CFTC after the exemption was rescinded and managers who have been relying on the de minimis exemption.