Historical regulation Prior to 1974, commodity pool operators were unregulated except for limited requirements to maintain records. In 1979, the CFTC adopted the first comprehensive regulation for commodity pool operators, which was later strengthened by additional rules in 1982 and 1983, increasing the CFTC's oversight of such entities. The CFTC has authorized the
National Futures Association (NFA), which it created in the early-1980s, to carry out processing of registration for certain derivatives industry entities (including CPOs) and to conduct a variety of related regulatory and educational activities.
Current regulation and exemptions Under the
Commodity Exchange Act, CPOs must register with and conform to the regulations of the CFTC, unless they meet the Commission's criteria for exemption. All registered CPOs must follow the CFTC's disclosure requirements and provide the Commission with certain records and reports as required. Even if a CPO is exempt from registration, they may still have to follow certain more limited requirements for disclosure and reporting: including that they must provide investors with a fund's offering memorandum, quarterly account statements, and an abbreviated annual report. In addition, the exempt CPO is required to submit a self-executing notice and electronic reports with the NFA. All CPOs are subject to the CFTC's general antifraud authority and general market oversight. The
United States Chamber of Commerce and the
Investment Company Institute filed a lawsuit against the CFTC, aiming to overturn these rule changes that effectively required the operators of mutual funds investing in commodities to be registered; however, the lawsuit was unsuccessful and the rule change was upheld by the courts in 2012 and 2013. ==See also==