NFA Provides Guidance on Annual Affirmation Requirement for Entities Currently Operating Under an Exemption from CPO or CTA Registration

The CFTC requires any person that claims an exemption from CPO registration under CFTC Regulation 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), 4.13(a)(5), an exclusion from CPO registration under CFTC Regulation 4.5 or an exemption from CTA registration under 4.14(a)(8) (collectively, exemption) to annually affirm the applicable notice of exemption within 60 days of the calendar year end, which for this affirmation cycle is March 1, 2018. Failure to affirm an active exemption from CPO or CTA registration will result in the exemption being withdrawn on March 2, 2018. For registered CPOs or CTAs, withdrawal of the exemption will result in the entity being subject to Part 4 Requirements regardless of whether the entity otherwise remains eligible for the exemption. For non-registrants, the withdrawal of the exemption may subject the person or entity to enforcement action by the CFTC.

Please reach out to your Sadis & Goldberg contact for further clarification on the affirmation process.

If you have questions about this Alert, please contact Daniel G. Viola at 212.573.8038, dviola@sglawyers.com.