The Commodity Futures Trading Commission (CFTC) has published a proposed rule regarding commodity pool operators and scheduled two public roundtables on Wednesday and Thursday (Sept. 15 and 16), all on different aspects of its reforming commodities regulation.
The CFTC announced last Wednesday the publication in the Federal Register of proposed regulations that would provide certain exemptions to commodity pool operators (CPOs) where units of participation in their commodity pools (a commodity ETF) are both sold in a registered public offering under the Securities Act of 1933 and listed for trading on a national securities exchange.
The registered CPO of a commodity ETF would be able to claim exemption from certain disclosure, reporting and recordkeeping requirements under CFTC regulations, based in part on substituted compliance with corresponding federal securities law requirements. Specifically, while they would remain obligated to provide the same disclosure information, make the same periodic reports and keep the same books and records as they are currently required to, they would not have to file regular statements if the information is "readily accessible" on the CPO's website and participants and prospective participants are made aware of that fact. Additionally, the proposed rule would offer to simplify requirements and the registration burden of independent directors and trustees serving on an ETF's audit committee.
Exemption under the proposed regulations would be claimed by filing a notice with the National Futures Association.
On Wednesday the CFTC and the Securities and Exchange Commission (SEC) will hold a public roundtable at SEC headquarters to discuss issues related to Swap Execution Facilities and Security-Based Swap Execution Facilities.
The roundtable will assist both agencies in the rulemaking process to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act. The discussions will be open to the public with seating on a first-come, first-served basis. Members of the public may attend or may listen by telephone by calling (877) 732-6722; conference ID: 7772. Written comments may be submitted.
On Thursday the CFTC staff will lead a public roundtable in discussing the Commission's proposed Ownership and Control Report (OCR) as outlined in its notice of proposed rulemaking published in the Federal Register on July 19. The proposed OCR calls for the collection of ownership, control and related information for all trading accounts active on U.S. futures exchanges and other reporting entities.
The public may either attend or listen on a call-in line at (866) 312-4390; conference ID: 94281936. Written comments also may be submitted.
In the interests of transparency in the rulemaking process, the CFTC said it will provide information on its website of all meetings that the chairman and Commission staff have with outside organizations regarding the implementation of the Dodd-Frank Act. The information will include the topics of the meetings, attendees, summaries and any materials presented to the CFTC. The information can be found at: www.cftc.gov/LawRegulation/OTCDerivatives/ExternalMeetings/index.htm.
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