Memo #
30209

ICI Global and Other Trade Associations File Comment Letter on CFTC Proposed Amendments to Rule for Foreign CPOs and CTAs
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[30209]

September 7, 2016

TO: REGISTERED FUND CPO ADVISORY COMMITTEE
ICI GLOBAL REGULATED FUNDS COMMITTEE No. 60-16 RE: ICI GLOBAL AND OTHER TRADE ASSOCIATIONS FILE COMMENT LETTER ON CFTC PROPOSED AMENDMENTS TO RULE FOR FOREIGN CPOs AND CTAs

 

The Commodity Futures Trading Commission (“CFTC” or “Commission”) recently proposed amendments (“Proposal”) to CFTC regulation 3.10(c). The Proposal would broaden the exemption from registration for a person located outside the United States acting as a commodity pool operator, commodity trading advisor, introducing broker, or a futures commission merchant, in connection with commodity interest transactions solely on behalf of persons located outside the United States, or on behalf of certain international financial institutions. [1] The Proposal would, among other things, remove the clearing condition from Regulation 3.10(c).

Yesterday, ICI Global, along with the Investment Adviser Association (“IAA”) and the Asset Management Group of the Securities Industry and Financial Markets Association (“SIFMA AMG”), filed the attached comment letter supporting the Proposal. The letter supports the Commission’s proposed codification of existing CFTC staff no-action relief to eliminate the clearing condition in the exemption. The letter explains that the Proposal is consistent with the underlying purposes, goals, and intent of Regulation 3.10(c)(3)(i) as evident from the history of amendments to that provision, the clearing requirements under Section 2(h) of the Commodity Exchange Act, and Commission policy.

 

Sarah A. Bessin
Associate General Counsel

Attachment

endnotes

[1] Exemption From Registration for Certain Foreign Persons, 81 Fed. Reg. 51824 (Aug. 5, 1016), available at http://www.cftc.gov/idc/groups/public/@lrfederalregister/documents/file/2016-18210a.pdf. For a description of the Proposal, please see ICI Memorandum No. 30123 (Aug. 9, 2016), available at https://www.iciglobal.org/iciglobal/pubs/memos/memo30123.