The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") granted no-action relief to four Commodity Pool Operators ("CPOs") from their registration requirement, provided that each CPO delegates its responsibilities under CEA Section 4m(1) to a registered CPO, subject to certain conditions.
The DSIO explained that, although the CPOs failed to meet one of the criteria previously granted by CFTC No-Action Letter 14-126 (i.e., that the Delegating CPO and the Designated CPO be under common control with each other where they are not natural persons), relief was justified, given that they remained jointly liable for any violations of the CEA and CFTC rules.
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