NFA Petitions for Rulemaking to Amend Regulation Excluding Registered Investment Companies from CFTC Regulation

August 27, 2010
The National Futures Association (“NFA”) has petitioned the Commodity Futures Trading Commission (“CFTC”) to amend CFTC Regulation 4.5, which currently excludes registered investment companies (“RICs”) from the “commodity pool operator” (“CPO”) definition under the Commodity Exchange Act. The NFA has requested that the CFTC require RICs with greater than de minimus investments in commodities to register and be regulated by the CFTC. This update examines the registration and regulation of CPOs as well as the NFA’s petition for rulemaking.