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CFTC finalizes rule to streamline reporting for commodity pool operators

Commission also signs data sharing MOU with US Treasury Department’s Office of Financial Research

7 October 2020

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The US Commodity Futures Trading Commission finalized a rule amending certain compliance requirements for commodity pool operators under Commission Regulation 4.27 by a 5-0  vote during an open meeting on 6 October.

Additionally, the CFTC signed a Memorandum of Understanding with the Office of Financial Research, a branch of the US Treasury Department, agreeing to share data and information collected by the CFTC on Form CPO-PQR, which includes portfolio, performance and risk information about their funds.

In closing out the meeting, CFTC Chairman Heath Tarbert noted that while this was the first open meeting of October, it won’t be the last and the public should expect an active month for the agency.

Final Rule: Amendments to Compliance Requirements for Commodity Pool Operators on Form CPO-PQR

Originally proposed in April, these amendments are intended to update Form CPO-PQR to better integrate the data collected through that form with other available data streams developed by the CFTC.

Tarbert noted in his opening statement that the amendments reflect the CFTC’s assessment of the scope of the CPO-PQR form and how it aligns with the Commission’s current regulatory priorities and data collection practices. Additionally, the Chairman emphasized the final rule will "reduce the reporting burdens for market participants."

CFTC Commissioner Brian Quintenz highlighted in his opening statement that while he believes there is more work to be done to improve the CPO reporting regime, the final rule eliminates "the most burdensome sections on the current CPO-PQR form - Schedules B and C, which together contain roughly 72 distinct questions."

CFTC Commissioner Dan Berkovitz concurred that the final rule "strikes a reasonable balance" between eliminating data that the agency has not been using and yet preserving data that it believes will be useful.

Statements and additional documents:

  • FIA
  • MarketVoice
  • Americas
  • Commodities
  • Regulation
  • Reporting