The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") granted no-action relief to two commodity pool operators ("CPOs") from their registration requirements, provided that each CPO delegated its responsibilities under CEA Section 4m(1) to a registered CPO, subject to certain conditions.
Although the CPOs failed to meet one of the criteria previously required 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), the DSIO explained that relief was justified, given that the two CPOs remain jointly liable for any violations of CEA and CFTC rules.
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