Commodity Pool Operators and Commodity Trading Advisors: Compliance Obligations
The Commodity Futures Trading Commission is adopting amendments to its existing part 4 regulations and promulgating one new regulation regarding Commodity Pool Operators and Commodity Trading Advisors. The Commission is also adopting new data collections for CPOs and CTAs that are consistent with a data collection required under the Dodd-Frank Act for entities registered with both the Commission and the Securities and Exchange Commission. The adopted amendments rescind the exemption from registration; rescind relief from the certification requirement for annual reports provided to operators of certain pools offered only to qualified eligible persons (QEPs; modify the criteria for claiming relief); and require the annual filing of notices claiming exemptive relief under several sections of the Commission's regulations. Finally, the adopted amendments include new risk disclosure requirements for CPOs and CTAs regarding swap transactions.
Harmonization of Compliance Obligations for Registered Investment Companies Required To Register as Commodity Pool Operators
The Commodity Futures Trading Commission is proposing amendments to its regulations regarding requirements applicable to investment companies registered under the Investment Company Act of 1940 (``registered investment companies'') whose advisors will be subject to registration as commodity pool operators due to changes that the Commission is adopting.
Business Conduct Standards for Swap Dealers and Major Swap Participants With Counterparties
The Commodity Futures Trading Commission (``Commission'' or ``CFTC'') is adopting final rules to implement Section 4s(h) of the Commodity Exchange Act (``CEA'') pursuant to Section 731 of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the ``Dodd-Frank Act''). These rules prescribe external business conduct standards for swap dealers and major swap participants.
Agency Information Collection Activities; Proposed Collection, Comment Request
The Commodity Futures Trading Commission (``CFTC'' or ``Commission'') seeks public comment on the collection of certain information by the Commission under section 745 of the Wall Street Reform and Consumer Protection Act (``Dodd-Frank Act''). The Paperwork Reduction Act (``PRA'') requires federal agencies to publish a notice in the Federal Register concerning each proposed collection of information and to allow 60 days for public comment. Section 745 requires the Commission to seek public comment for not less than 30 days with respect to certain industry filings. This notice solicits comments on the provisions of the Commission's final rulemaking on ``Provisions Common to Registered Entities'' under which the Commission would collect comments on the industry filings by publication of documents related to the filings and a request for comments on the Commission's public Web site.\1\
Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Covered Funds
The Commodity Futures Trading Commission (``CFTC'' or ``Commission'') is requesting comment on a proposed rule that would implement Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank Act'') which contains certain prohibitions and restrictions on the ability of a banking entity and nonbank financial company supervised by the Board of Governors of the Federal Reserve System (the ``Board'') to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund (``CFTC Rule''). On November 7, 2011, the Office of the Comptroller of the Currency, Treasury (``OCC''); the Board; the Federal Deposit Insurance Corporation (``FDIC''); and the Securities and Exchange Commission (``SEC'') published a joint proposed rule implementing Section 619 of the Dodd-Frank Act (the ``Joint Release'').\1\ The CFTC is adopting the entire text of the proposed common rules section from the Joint Release (the ``Joint Rule'') as part of its proposed rule.\2\ Similar to the OCC, the Board, the FDIC, and the SEC in the Joint Release, the CFTC is modifying the Joint Rule with CFTC-specific rule text. The CFTC Rule also contains additional questions specific to the CFTC in Section III and does not include Subpart E of the Joint Release because Subpart E deals exclusively with the Board. The Commission solicits comments on all aspects of this proposed rule.
Notice Requesting Nominations for the Subcommittee on Automated and High Frequency Trading
The Commodity Futures Trading Commission (CFTC or Commission) is calling for nominations to the Subcommittee on Automated and High Frequency Trading (Subcommittee) under the auspices of the Technology Advisory Committee. The Subcommittee was established to develop recommendations regarding the definition of high frequency trading (HFT) in the context of the larger universe of automated trading. The definition of HFT is anticipated to serve as an initial step towards assessing the presence and impact of HFT in CFTC regulated markets for consideration of appropriate policy responses. The Subcommittee will report to the full Technology Advisory Committee. Developing a common definition of HFT and the characteristics of HFT will help inform the public debate as to the impact of such trading on markets under the jurisdiction of the CFTC. Regulators, markets, market participants, and the public will benefit from a common understanding of the activities and entities involved in HFT. All members of the Subcommittee will participate and consider possible criteria for inclusion in the definition of HFT within the context of automated trading systems (ATS) and suggest specific thresholds for each criterion. Nominations are sought for highly qualified representatives from industry, exchanges, academia, international regulatory and/or advisory bodies, groups representing interests or organizations involved in and/or affected by the development, design, and operation of ATS and HFT, and government agencies. Individuals seeking to be nominated to the Subcommittee should possess demonstrable expertise in a related field or represent a stakeholder of interest in the issue. Prospective nominees should be open to participating in an open public-private forum. Members of the Subcommittee will be appointed by a vote of the Commission as in accordance with the Federal Advisory Committee Act (FACA), 5 U.S.C. app. 2, and the charter of Technology Advisory Committee.
Public Availability of Commodity Futures Trading Commission FY 2011 Service Contract Inventory
In accordance with Section 743 of Division C of the Consolidated Appropriations Act of 2010 (Pub. L. 111-117), Commodity Futures Trading Commission is publishing this notice to advise the public of the availability of the FY 2011 Service Contract inventory. This inventory provides information on service contract actions over $25,000 that were made in FY 2011. The information is organized by function to show how contracted resources are distributed throughout the agency. The inventory has been developed in accordance with guidance issued on November 5, 2010 by the Office of Management and Budget's Office of Federal Procurement Policy (OFPP) and the revised guidance issued on 11/8/2011. OFPP's November 5, 2010 guidance is available at http://www.whitehouse.gov/sites/default/files/omb/ procurement/memo/service-contract-inventories-guidance-110520 10.pdf. Commodity Futures Trading Commission has posted its inventory and a summary of the inventory on the CFTC homepage at the following link: http://www.cftc.gov/About/CFTCReports/index.htm.