CPO and CTA Capital Requirement and Customer Protection Measures


The Asset Management Group of SIFMA (SIFMA AMG) provides comments to the National Futures Association (NFA) on the NFA’s Notice to Member (NTM) requesting comments concerning possible capital requirements and other customer protection measures for registered commodity pool operators (CPOs) and commodity trading advisers (CTAs). The NTM explains that NFA is evaluating potential regulatory responses to recent membership responsibility actions (MRAs) against certain CPOs and CTAs that are members of NFA (CPO/CTA member)

SIFMA AMG carefully reviewed the MRAs and agree with NFA that they present legitimate concerns about fraud and mismanagement of client assets. However, the group believes that those concerns cannot be mitigated by a capital requirement or the other measures discussed in the NTM.