Registered CPOs and CTAs: Prepare for June 30 Changes to NFA Forms PQR and PR

June 14, 2017

Beginning with the second quarter 2017 filings, registered commodity pool operators (CPOs) and commodity trading advisors (CTAs) (collectively, Registrants) will need to report financial information regarding their own operations on National Futures Association (NFA) Forms PQR and PR, respectively. The new information includes two financial ratios for the Registrant – current assets/current liabilities and total revenue/total expenses (New Ratios) – that the NFA will use to evaluate trends relating to a Registrant’s financial condition. Previously, all financial information reported on these forms related to the commodity pools and accounts that the Registrants operate and/or advise.

In advance of the reporting deadlines (August 14, 2017 for CTAs and August 29, 2017 for CPOs), Registrants should consider the NFA’s guidance on the New Ratios and determine how to calculate the New Ratios, especially if they do not already calculate these ratios for other reasons.

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