CFTC orders commodity pool operator exemptions of 17 entities to be ineffective
The move follows a special call by the Division of Swap Dealer and Intermediary Oversight.
The United States Commodity Futures Trading Commission (CFTC) on Friday announced it issued an order deeming the commodity pool operator (CPO) exemptions of 17 entities to be ineffective following a special call by the Division of Swap Dealer and Intermediary Oversight (DSIO). The order was approved by the Commission on July 7, 2020 and is effective immediately.
“This Commission action, and the related use of its special call authority, sends a strong message that we take our registration and exemption regime seriously,” said DSIO Director Joshua B. Sterling. “This regime is fundamental to our oversight of market participants, and we are dedicated to ensuring its integrity and to reacting swiftly when firms fail to comply with the rules.”
Each of the entities, purportedly based abroad, had claimed an exemption from CPO registration in accordance with Commission Regulation 4.13(a)(2), which provides that a person is not required to register as a CPO if:
- none of the pools it operates has more than 15 participants at any time; and
- the total gross capital contributions it receives for units of participation in all of the pools it operates or that it intends to operate do not in the aggregate exceed $400,000.
The special call was initiated in accordance with Commission Regulation 4.13(c)(1)(iii), which requires persons claiming an exemption to submit to such special calls as the Commission may make to demonstrate eligibility for and compliance with the applicable criteria for exemption.
“Working with the National Futures Association (NFA), we identified credible reason to believe that certain entities may have claimed the exemption without meeting the eligibility criteria,” added DSIO Deputy Director Amanda Olear.
Each of the entities named in the order failed to comply with its obligation to respond to the special call, which led the CFTC to determine their claimed exemptions ineffective.
Each named entity’s claimed exemption has been withdrawn from NFA’s records:
123 SAHN RHW
AE GLOBAL LIMITED
AMTO SECURITIES LTD
ASFX CAPITAL LIMITED
BEST TRADER TECHNOLOGY LIMITED
BONUS FINANCE PTY LTD
DPI INTERNATIONAL PTY LTD
FXZOOM GLOBAL CO LTD
GLOBAL NEW TRADE LIMITED
HUIYING GLOBAL PTY LIMITED
INTAN TECHNOLOGY CO LTD
JAG MARKETS LIMITED
MANOVITCH GROUP CO LIMITED
PHIL INTERNATIONAL LIMITED
POCKETECH PTY LTD
YESJAL KSIAL LIMITED