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Client Alert: COVID-19 NFA Update -- Regulatory Relief for CPOs and CTAs - 23 March 2020

On March 23, 2020, the NFA issued Notice to Members I-20-15, which provides an update on the regulatory relief available to CPOs and CTAs during the ongoing global pandemic caused by COVID-19. The NFA's notice is reproduced below. 

 

Notice to Members I-20-15
March 23, 2020

Coronavirus (COVID-19) Update—Regulatory Relief for CPOs and CTAs

On March 20, 2020, the CFTC issued a no-action letter to commodity pool operators (CPO) in response to the COVID-19 pandemic. As discussed below, NFA is issuing similar relief from rules for CPO Members. Additionally, NFA is providing commodity trading advisor (CTA) Members with similar relief for NFA Form PR filings.

NFA Compliance Rule 2-46

NFA Compliance Rule 2-46 requires each CPO Member to file the NFA Form PQR on a quarterly basis with NFA for each pool that it operates within 60 days after the quarters ending in March, June and September and within 90 days after the quarter ending in December. Under these requirements, CPO Members are required to file the Form PQR for the quarter ended December 31, 2019 by March 30, 2020 and for the quarter ended March 31, 2020 by May 30, 2020. NFA is extending the due date for the December 31, 2019 PQR (due on March 30) until May 15, 2020 and the due date for the March 31, 2020 PQR (due on May 30, 2020) until July 15, 2020.

NFA Compliance Rule 2-46 also requires each CTA Member to file the NFA Form PR on a quarterly basis with NFA within 45 days after each quarter end. Under this requirement, CTA Members are required to file NFA Form PR for the quarter ended March 31, 2020 by May 15, 2020. NFA is extending the due date for the March 31, 2020 NFA Form PR until June 30, 2020.

NFA Compliance Rule 2-13

NFA Compliance Rule 2-13 requires CPO Members to file pool annual reports with NFA and provide a copy to participants in accordance with the timing requirements set forth in CFTC Regulations 4.7(b) and 4.22(c). CPO Members that are in compliance with the terms of the CFTC's relief providing extended due dates for any of these reports due on or before April 30, 2020, will be deemed to be in compliance with NFA's related requirements.

NFA Compliance Rule 2-13 also requires CPO Members to distribute periodic account statements to pool participants on either a monthly or quarterly basis in accordance with CFTC Regulations 4.7(b) and 4.22(b). CPO Members that are in compliance with the terms of the CFTC's relief for distribution of these statements will be deemed to be in compliance with NFA's related requirements.

If you have any questions on this Notice, please contact Mary McHenry, Associate Director, Futures Compliance (312-781-1420 or mmchenry@nfa.futures.org) or Christine Roche, Associate Director, Futures Compliance (312-781-1562 or croche@nfa.futures.org).