CFTC Changes Rules Affecting Public and Private Funds

March 01, 2012
The U.S. Commodity Futures Trading Commission (CFTC) recently adopted final rules under the Commodity Exchange Act as amended that modify and eliminate certain CFTC registration exclusions and exemptions widely used by sponsors of investment companies registered under the Investment Company Act of 1940 as amended and private investment funds. As a result, public and private funds that use commodity futures, commodity options or many derivatives face a significantly altered regulatory landscape. This update examines these changes and their potential impact on fund sponsors and advisers.