Blog Post

Disclosure Obligations for CPOs and CTAs under Proposed Amendments to CFTC Regulation 4.7

The BR Derivatives Report

This article is the second in a series on a recent rule proposal by the U.S. Commodity Futures Trading Commission (“CFTC”) to amend CFTC Regulation 4.7.


As detailed in an October 9 article at The BR Derivatives Report, the CFTC recently proposed amendments to CFTC Regulation 4.7. If adopted, these amendments will substantially change the disclosure and compliance oversight obligations of many commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”).

This article supplements the earlier article by offering a more detailed overview of the disclosure obligations under the CFTC’s proposal to amend CFTC Regulation 4.7. 

NFA Disclosure Document Guides for CPOs and CTAs: Understanding the Proposed 4.7 Disclosure Obligations by Considering Existing Disclosure Obligations for Non-QEPs

The recently proposed disclosure obligations under Regulation 4.7 are based upon existing requirements that apply to CPOs and CTAs offering services to prospective pool participants and clients that do not meet CFTC Regulation 4.7’s Qualified Eligible Person (“QEP”) requirements (such participants and clients, “Non-QEPs”).

To this end, it is useful to consider the disclosure document guides published by the National Futures Association (“NFA”) for CPOs (available here) and CTAs (available here) regarding the disclosure obligations that apply to Non-QEPs under CFTC regulations that are presently in effect.

In sum, understanding more about the existing disclosure requirements for CPOs and CTAs that offer pools and advisory services to Non-QEPs will aid in the understanding of the proposed amendments to CFTC Regulation 4.7.

The remainder of this article will focus on the disclosure obligations for CPOs and CTAs under the proposed rule amendments.

To read the full post, please visit our BR Derivatives Report blog.