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Do Your Derivatives Trading Activities Require You to be Registered as a Commodity Pool Operator by 1 January 2013?

25 October 2012

On 8 February 2012, the Commodity Futures Trading Commission (“CFTC”) repealed the commodity pool operator (“CPO”) registration exemption widely used by the operators of private funds offered only to highly sophisticated investors (commonly called “qualified purchaser funds” or “Section 3(c)(7) Funds”). That exemption – which was set forth in CFTC Regulation 4.13(a)(4) – placed no limits upon the amount of commodity interest trading by such funds. At the same time, the CFTC voted to retain the CPO registration exemption in Regulation 4.13(a)(3) for operators of private funds that trade only a de minimis amount of commodity interests. If a manager cannot rely on the Regulation 4.13(a)(3) exemption, or another available exemption, the manager must generally register with the CFTC and have its registration made effective on 1 January 2013.

K&L Gates hosted a webinar on October 25 that focused on how these new regulatory developments will impact many non-U.S. private fund managers. Our panelists discussed and answered questions on the following topics, among others:

  • Effective date for rescission of CFTC Regulation 4.13(a)(4) and effect on the launch of new funds
  • CFTC's 13 July no-action relief
  • Changes to CFTC Regulation 4.13(a)(3)
  • Registration as a CPO and/or a Commodity Trading Advisor ("CTA")
  • Other exemptions available, including those available to non-U.S. managers and registered CPOs and CTAs


  • Philip J. Morgan, K&L Gates LLP, London


  • Susan I. Gault-Brown, Partner, K&L Gates LLP, Washington, D.C.
  • Cary J. Meer, Partner, K&L Gates LLP, Washington, D.C.
  • Lawrence B. Patent, Of Counsel, K&L Gates LLP, Washington, D.C.