What is CFTC Part 30 exemption?

Regulation 30.5 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.

Can CFTC take action against non registrants?

Non-Registrant Sanctions: CFTC Taking Actions for Failure to File Required Reports. Non-Registrants face many CFTC rules and regulations, and increasingly the obligation to file certain reporting forms, including Forms 204 and 304.

What is the difference between 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 FCM CFTC?

A futures commission merchant (FCM) is an entity that solicits or accepts orders to buy or sell futures contracts, options on futures, retail off-exchange forex contracts or swaps, and accepts money or other assets from customers to support such orders.

Who needs to register with CFTC?

The Commodity Exchange Act (CEA) requires certain firms and individuals that conduct business in the derivatives industry to register with the CFTC. CFTC regulations also require, with few exceptions, CFTC registered firms to be NFA Members. The CFTC has delegated registration responsibility to NFA.

What is the purpose of the CFTC?

The Commodity Futures Trading Commission protects the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to fosters open, competitive, and financially sound futures and option markets.

Can CFTC prosecute criminal violations?

The CFTC Division of Enforcement investigates and prosecutes alleged violations of the Commodity Exchange Act and Commission regulations.

Is a CFTC enforcement action criminal?

Criminal activity involving commodity-related instruments can result in prosecution for criminal violations of the CEA and for violations of other federal criminal statutes, including commodities fraud, mail fraud, wire fraud and conspiracy.

Who is exempt from CTA?

Section 4m(3) provides an exemption from CTA registration for a person: (1) who is registered with the Securities and Exchange Commission as an investment adviser; (2) whose business does not consist primarily of acting as a commodity trading advisor; and (3) who does not act as a commodity trading advisor to any …

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.

How many FCMs are there?

The FCM selection process is different based on the specific needs of each client, and our clients are divided amongst the six FCMs that we use. Some FCMs that managed futures investors should stay away from are the ones that are not equipped to handle managed futures accounts.

How often must an FCM file unaudited financial reports?

Futures commission merchants (FCMs) must file monthly unaudited financial reports (Form 1-FR-FCM) with the Commission and their designated self-regulatory organizations. Non-guaranteed introducing brokers (IBs) must file semiannual unaudited financial reports (Forms 1-FR-IB) with the National Futures Association.

Categories: Trendy