What does it mean to be registered with the CFTC?
Before working with any person or firm to trade in commodity futures, commodity pools, options, forex, or other derivatives, verify that the entity is properly registered with the CFTC. The Commodity Exchange Act requires certain firms and individuals to be registered with the CFTC.
What is CFTC exemption?
CFTC Regulation 30.5 provides an exemption for registration for any person located outside of the U.S. who is required to be registered with the Commission under Part 30 other than a person required to be registered as a FCM.
Who is required to register as a swap dealer?
Every swap dealer and MSP must register as such with the appropriate regulator under rules required to be promulgated within one year of enactment of the Act. Dual registration is required for swap dealers or major swap participants engaging in both swap and security-based swap transactions.
Who controls CFTC?
The CFTC has five commissioners appointed by the President, with the advice and consent of the Senate, to serve staggered five- year terms. The President, with the consent of the Senate, designates one of the commissioners to serve as Chairman.
What is a qualified eligible person?
A qualified eligible participant (QEP) is an individual who meets the requirements to trade in sophisticated investment funds such as futures and hedge funds. These requirements are defined by Rule 4.7 of the Commodity Exchange Act (CEA).
How do I file a CFTC exemption?
What to File:
- Provide the following: name, main business address, main business telephone, main FAX number, and main email address of the person claiming exemption.
- Must be filed by a representative duly authorized to bind the trading advisor.
What is a swap under CFTC?
The CFTC adopted anti-evasion rules that define as swaps those transactions that are willfully structured to evade the requirements of the Dodd-Frank Act.
Is CFTC a government agency?
The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974, that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options.
What is a 4.7 exemption?
For those of you that have no idea what a 4.7 exemption is; filing a 4.7 exemption means that a CTA is exempt from certain regulations such as filing a Disclosure Document with the National Futures Association (“NFA”) – but in exchange for that relief, can only accept QEP investors (Qualified Eligible Investors, which …
How do I become a qualified investor?
In the U.S., an accredited investor is anyone who meets one of the below criteria: Individuals who have an income greater than $200,000 in each of the past two years or whose joint income with a spouse is greater than $300,000 for those years, and a reasonable expectation of the same income level in the current year.