What is CPO exemption?

Exclusion from the CPO and Pool Definitions. Rule 4.5 ( 17 C.F.R. 4.5) makes available an exclusion from the definition of the term “commodity pool operator” for certain otherwise regulated persons in connection with their operation of specified trading vehicles.

Does a CPO have to register with the CFTC?

CPO registration is required unless the CPO qualifies for one of the exemptions from registration outlined in CFTC Regulations 4.5 or 4.13. If a CPO qualifies for an exemption from registration, it must electronically file a notice of exemption from CPO registration through NFA’s Electronic Exemption Filing System.

What is CFTC exemption?

CFTC Regulation 30.5 provides an exemption for registration for any person located outside of the U.S. who is required to be registered with the Commission under Part 30 other than a person required to be registered as a FCM.

What is a 4.7 exemption?

For those of you that have no idea what a 4.7 exemption is; filing a 4.7 exemption means that a CTA is exempt from certain regulations such as filing a Disclosure Document with the National Futures Association (“NFA”) – but in exchange for that relief, can only accept QEP investors (Qualified Eligible Investors, which …

What is the difference between a CPO and CTA?

A formal definition of a CTA is provided under the Commodity Exchange Act (CEA) (P.L. 74-765). CPOs are the organizations managing commodity pools. A CPO solicits or accepts funds, securities or property from prospective investors in the commodity pool.

What is a qualified eligible person?

A qualified eligible participant (QEP) is an individual who meets the requirements to trade in sophisticated investment funds such as futures and hedge funds. These requirements are defined by Rule 4.7 of the Commodity Exchange Act (CEA).

What is a CPO registration?

A commodity pool operator (CPO) manages pooled funds that invest in commodities futures and related securities. A CPO may work for a hedge fund or investment fund that takes positions in commodities. CPOs must register with the Commodities Futures Trading Commission (CFTC).

Are there exceptions to the swaps clearing requirement?

The final rule exempts banks, savings associations, farm credit system institutions, and credit unions with total assets of $10 billion or less from the definition of “financial entity,” making such “small financial institutions” eligible for the end-user exception.

What is a CPO finance?

A commodity pool operator (CPO) is a money manager or investment fund (called a commodity pool) that oversees investments made in commodities securities such as futures and options contracts, or foreign exchange (forex) contracts.

Is a hedge fund a CPO?

Key Takeaways. A commodity pool operator (CPO) manages pooled funds that invest in commodities futures and related securities. A CPO may work for a hedge fund or investment fund that takes positions in commodities. CPOs must register with the Commodities Futures Trading Commission (CFTC).

What is CPO trade?

A Commodity pool operator (CPO) is an individual or organization that solicits or receives funds to use in the operation of a commodity pool, syndicate, investment trust, or other similar fund, specifically for trading in commodity interests.

What qualifies as an accredited investor?

The SEC defines an accredited investor as either: an individual with gross income exceeding $200,000 in each of the two most recent years or joint income with a spouse or partner exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.