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CFT Financial Data For Futures Commission Merchants Update

CFT Financial Data For Futures Commission Merchants Update
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You Asked They Answered: The CFTC Publishes Updated FAQ for Form CPO-PQR | K&L Gates LLP


Introduction
On 26 May 2021, the Commodity Futures Trading Commission’s (CFTC or the Commission) Market Participants Division (MPD) published updated responses to frequently asked questions regarding Form CPO-PQR and CFTC Regulation 4.27 (the 2021 FAQ). The purpose of the 2021 FAQ is to provide guidance to commodity pool operators (CPOs) filing the recently revised Form CPO-PQR.
1
Form CPO-PQR is a filing designed to collect data from registered CPOs
2 about each of their operated commodity pools. CFTC Regulation 4.27 requires that CPOs file Form CPO-PQR with the National Futures Association (NFA).
3 The Commission began requiring CPOs to file Form CPO-PQR in 2012.
4
On 6 October 2020, the Commission adopted a final rule that amended CFTC Regulation 4.27 and Form CPO-PQR (the 2020 Final Rule). ....

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The CFTC Issues Advisory Regarding an FCM's Risks of Accepting Virtual Currency into Segregation | Orrick, Herrington & Sutcliffe LLP


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Virtual currency presents risks to futures commission merchants (FCMs) when deposited by futures customers or cleared swaps customers to margin futures, options on futures, or cleared swap transactions, according to an Advisory issued on October 21, 2020, by the Director of the CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO). The CFTC staff Advisory is intended to provide guidance to FCMs on developing risk management programs for holding virtual currency as futures customer funds. A firm that decides to accept virtual currency needs to adopt policies and procedures that go beyond typical segregation funds and which, among other things, limit which types of virtual currency it can accept, how to value the virtual currency for margin purposes, and how to protect the currency against hacks and loss of keys. ....

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CFTC Broadens Available Exemption for Non-U.S. CPOs | Dechert LLP


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The Commodity Futures Trading Commission, on December 7, 2020, published in the Federal Register significant amendments to CFTC Regulation 3.10(c) (Amendments), making the regulation a more broadly available registration exemption for non-U.S. commodity pool operators (CPOs).
1 The chief importance of the Amendments is that they will help non-U.S. CPOs to operate a “U.S.-facing” and “non-U.S. facing” pool business simultaneously;
2 without subjecting the entire business of those CPOs to full CFTC regulation where that regulation is not necessarily warranted. The CFTC had unanimously approved the Amendments at an open meeting held on October 15, 2020. ....

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