CFTC Adopts Rule Changes and Rescinds Rule 4.13(a)(4)

February 15, 2012
The U.S. Commodity Futures Trading Commission (CFTC) has adopted a set of rule changes designed to assist in overseeing the commodities and derivatives markets and assessing the market risk associated with pooled investment vehicles under its jurisdiction. These rule changes include the rescission of Rule 4.13(a)(4), an exemption from registration with the CFTC as a commodity pool operator relied on by many non-U.S. operators of commodity pools like hedge funds and other types of “qualified purchaser” funds. In this update, we examine these rule changes and their likely impact.