Joint Letter to the CFTC on Proposed Revisions to U.S. Commodity Market Participation Rules

On August 11 MFA, SIFMA AMG, AIMA, IAA, and ICI submitted a letter to the CFTC in response to the proposed revisions to the rules on participation in U.S. commodities markets.  The Associations strongly support the proposed amendments to the 3.10 Exemption. In addition, the Associations believe that the purposes of the Proposal can be better achieved, without any sacrifice of U.S. investor protection, by incorporating the following adjustments in the final amendments:

  1. Adjusting the Affiliate Support Exemption (a) to permit contributions from U.S. affiliates without limiting the exemption to “controlling affiliates”; (b) to permit S. affiliate
  2. Aligning the text of the proposed Stacking Provisions to conform to the Commission’s stated purpose, which is to permit a registered or exempt CPO to rely on the 10 Exemption on a pool-by-pool basis while relying simultaneously, for other activities, on full or partial exemptions or exclusions provided by other Commission rules (for example, but not limited to, Regulations 4.13(a)(3) and 4.5); and
  3. Adding corresponding provisions to paragraphs (c)(3)(ii) and (v) of the 10 Exemption for CTAs, in order to provide consistent regulatory treatment for global asset management activities that do not involve U.S. investors, in alignment with the Commission’s policy goals and current global practices.