CFTC orders commodity pool operator exemptions of 17 entities to be ineffective

Maria Nikolova

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Each named entity’s claimed exemption has been withdrawn from NFA’s records:

  1. 123 SAHN RHW

  2. AE GLOBAL LIMITED

  3. AMTO SECURITIES LTD

  4. ASFX CAPITAL LIMITED

  5. BEST TRADER TECHNOLOGY LIMITED

  6. BONUS FINANCE PTY LTD

  7. DPI INTERNATIONAL PTY LTD

  8. FXZOOM GLOBAL CO LTD

  9. GLOBAL NEW TRADE LIMITED

  10. HUIYING GLOBAL PTY LIMITED

  11. INTAN TECHNOLOGY CO LTD

  12. JAG MARKETS LIMITED

  13. MANOVITCH GROUP CO LIMITED

  14. PHIL INTERNATIONAL LIMITED

  1. POCKETECH PTY LTD

  2. YESJAL KSIAL LIMITED

  3. YOLID LIMITED

Read this next

Institutional FX

Euronext reports double-digit growth in FX volume

Pan-European exchange, Euronext has reported a 10 percent rebound in the average daily volume on its spot foreign exchange market. The ADV figure stood at $19.6 billion in January 2022, which is up from December’s $18 billion.

Digital Assets

Voyager subpoenas FTX’s inner circle over Alameda loan

Bankrupt crypto broker Voyager Digital, represented by law firm Kirkland & Ellis, is seeking court approval to subpoena Sam Bankman-Fried’s inner circle, as well as Alameda Research’s former executives.

Retail FX

AvaTrade seals sponsorship deal with F1’s Aston Martin team

Dublin-based forex broker AvaTrade today announced that it has concluded a sponsorship deal with Formula One’s Aston Martin Cognizant team that entails sponsorship rights and other marketing benefits.

Executive Moves

M4Markets onboards Invaxa CEO Marios Antoniou as COO

Seychelles-regulated brokerage firm M4Markets has appointed Marios Antoniou, who has a colorful career within the foreign exchange industry, in the capacity of its Chief Operations Officer.

Digital Assets

GK8 now allows clients to control their digital assets as they would their fiat

“As the institutional market is increasingly turning to self custody, our policy engine empowers them to automate transactions, approvals, and even crucial workflows, while providing the highest degree of security, consistency, governance and control.”

Digital Assets

Retail CBDCs in the UK: “Welcomed” by CryptoUK and R3, but “Dystopian” for ETC Group

“At this stage, we judge it likely that the digital pound will be needed in the future. It is too early to decide whether to introduce the digital pound, but we are convinced preparatory work is justified”, said the BoE and HM Treasury.

Institutional FX

Centroid taps Iress API to provide retail brokers with real-time market data

“It has always been a challenge to have an efficient, elegant solution for market data and order execution for retail brokers, but with Iress we have found absolutely the right partner to add to our client offering.”

Digital Assets

Ramp launches FCA-approved off-ramp product, onboards Brave, Trust Wallet, Ledger

“To obtain and maintain our FCA registration, we must meet and operate within their strict anti-money laundering and counter-terrorist financing standards. This is a huge achievement for us, as compliance is a cornerstone of our business and what we stand for.”

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”

<