NFA Announces New CPO Notice Filing Requirements


James Hickey

Publish Date


Compliance Alert

  • Compliance

On April 13, 2021, the NFA issued a Notice to Members regarding the recently adopted Compliance Rule 2-50 and Interpretative Notice 9080 requiring a CPO to file timely notices with the NFA when certain market events affect the ability of the commodity pool to fulfill its obligations to participants or counterparties, or result in the pool’s unplanned liquidation. Specifically, Compliance Rule 2-50 requires CPOs to notify the NFA by no later than 5:00 p.m. CT of the next business day if any of the following circumstances occur:

  • CPO Member operates a commodity pool that is unable to meet a margin call(s)
  • CPO Member operates a commodity pool that is unable to satisfy redemption requests in accordance with its subscription agreements
  • CPO Member operates a commodity pool that has halted redemptions, and the halt on redemptions is not associated with pre-existing gates or lockups, or a pre-planned cessation of operations
  • CPO Member receives notice from a swap counterparty that a pool the CPO Member operates is in default

Interpretive Notice 9080 provides guidance on the events set forth under Compliance Rule 2-50 and clarifies the circumstances where notification to the NFA is not required.

NFA Compliance Rule 2-50 and Interpretative Notice 9080 will become effective on June 30, 2021. The NFA will provide additional instructions regarding the form and manner of the CPO notice filing prior to June 30, 2021.

Please note, this rule applies to all pools, including those that are exempt under CFTC Regulation 4.13(a)(3).

How we help

NFA’s adoption of these new requirements may require your firm to revisit certain policies and procedures to mitigate potential violations if any of the four mentioned scenarios occurred.

We provide a range of compliance consulting and managed services to support CFTC and NFA members through every stage of their business.

We are prepared to help our clients update their Compliance Manual and relevant policies and procedures and help with CPO notice filings. Please reach out if your firm needs support.

For more information

If you have any questions or would like to discuss this notice further, please contact us here.

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