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ARTICLE · 17 FEBRUARY 2014

NFA Requests Comments On Need For CPO/CTA Capital Requirements

Morrison Foerster
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Should the National Futures Association impose capital requirements on commodity pool operators and commodity trading advisors?

United StatesFinance and Banking
Jay Baris
Jay Baris
Kelley Howes
Kelley Howes
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Should the National Futures Association (NFA) impose capital requirements on commodity pool operators (CPOs) and commodity trading advisors (CTAs)? On January 23, 2014, the NFA published a Notice to members seeking public comments on this controversial proposal. The proposal does not appear to exclude advisers of registered investment companies that are required to register as CPOs under recently amended CFTC Rule 4.5.

In addition to requesting comments on the possibility of imposing capital requirements, the NFA's Notice requests comments on other customer protection measures, including:

  • Requiring an independent third party to review and authorize a CPO's disbursement of any pool funds;

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