The Registration & Compliance Regime for Commodity Pool Operators & Commodity Trading Advisers

The Asset Management Group (AMG) of SIFMA provides comments to the Commodity Futures Trading Commission (CFTC) on the CFTC’s February 11, 2011 Notice of Proposed

Rulemaking, which would consider (i) amendments to CFTC Rule 4.5 (Rule 4.5) that would (a) reinstate pre-2003 requirements applicable to investment companies registered under the Investment Company Act of 1940, as amended that rely on the Rule 4.5 exclusion from the definition of “commodity pool operator” (“CPO”) and (b) expand such criteria to include trading restrictions relating to swaps, (ii) the CFTC’s proposed rescission of the exemptions from CPO registration under CFTC Rules 4.13(a)(3) and (4) (the  Rule 4.13 Proposal and, together with the Rule 4.5 Proposal, the Rule 4.5/4.13 Proposals) and (iii) certain other rules proposed by the CFTC in the Notice. SIFMA AMG believes that the Rule 4.5/4.13 Proposals should not be adopted because they would result in significant regulatory burdens and costs, which ultimately will be borne by investors, on otherwise regulated entities, without a corresponding benefit to investors, the markets or the general public.