Read the success stories of crypto entrepreneurs.

Discussions are fun when we are part of a community.
Login Free Registration

Get 10 AltcoinN Points just by registering on this forums.


Crypto Hedge Fund Managers Offering CPO for Futures & Swaps Required CFTC Registratio

SourceOriginal
#1
Bitcoin Exchange Guide

 
Cryptocurrency News
Crypto Hedge Fund Managers Offering CPO for Futures & Swaps Required CFTC Registration
By AnTy- February 11, 2020
Crypto Hedge Fund Managers Offering CPO for Futures & Swaps Required CFTC Registration
Asset managers exploring the best way to offer pooled investment vehicles that trade futures, swaps, and other products in digital assets like Bitcoin required to register with the CFTC and comply with certain disclosure
Crypto hedge fund managers don't need to touch securities for the rules to apply to them
In support of innovation in digital asset products, CFTC's Director of Swap Dealer and Intermediary Oversight Division Joshua B. Sterling published a statement on Feb.10th. The statement reads,

“THE DIVISION ACTIVELY SUPPORTS THE CFTC’S CORE OBJECTIVE OF FOSTERING RESPONSIBLE INNOVATION AND ENHANCING THE REGULATORY EXPERIENCE OF MARKET PARTICIPANTS.”


 
Katherine Wu of VC firm Notational Capital says all crypto hedge fund managers, especially those who invest in crypto futures contracts or use leverage or margin needs to take a special look as “you don't need to touch securities for this to apply to you” and “CFTC does have authority over certain leveraged, margined, or financed retail commodity transactions.”

She further reminds of the 2016 incident when CFTC took action against crypto exchange Bifinex and ordered them to pay $75,000 for “offering illegal off-exchange financed retail commodity transactions and failing to register as a futures commission merchant.”

Registration with CFTC and Comply with Disclosures
They can be helpful to commodity pool operators (CPOs) and other asset managers that are exploring the best way to offer pooled investment vehicles that trade futures, swaps, and other products regarding digital assets like Bitcoin (BTC) and stablecoins, said Sterling.

Because those vehicles are considered commodity pools under the Commodity Exchange Act and CFTC regulations, those operators are required to register with the CFTC and comply with certain disclosure, recordkeeping, and reporting requirements as per CFTC’s Part 4 regulations.

Regardless of the asset referenced by a futures contract, swap, or other commodity interest – including Bitcoin and other digital assets, these disclosures are required that are subject to review by NFA, although not for those registered as investment companies under the 1940 Act.


 
Sterling further clarifies that the operators will have to correctly characterize their pool’s investment strategy, describe “precisely” how the instruments present opportunities for gain or loss.

These pools also have to divulge business background, education experience of its key personnel and material information about its commodity brokers and trading counterparties. Moreover, they will have to disclose expenses related to commodity interest trading and other fees.

Firms that are considering launching a commodity pool have to assess whether it needs to register as a CPO and if they trade a mix of commodity and securities, whether that pool is an “investment company.”

Exceptions are available although that would depend on the composition of a commodity pool’s portfolio, investor base, and the way the pool markets itself.

Previous Review
Ripple (XRP) Price Analysis (February 11)
AnTy
AnTy
AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.
   

 
Latest Crypto News
Ukraine’s Ministry of Digital Transformation: Crypto Mining Doesn't Need Govt. Regulation
Ukraine’s Ministry of Digital Transformation: Crypto Mining Doesn’t Need Govt. Regulation
February 10, 2020
FINMA's New AML Provision Requires Crypto Exchange Transactions Over $1000 To Provide ID
FINMA’s New AML Provision Requires Crypto Exchange Transactions Over $1000 To...
February 7, 2020
Is CryptoMom's 3-Year Safe Harbor Proposal For Token Sellers Good For The Crypto Industry?
Is Crypt

oMom’s 3-Year Safe Harbor Proposal For Token Sellers Good For...
February 6, 2020

 
NO COMMENTS
LEAVE A REPLY
Comment:
Name:*
Email:*
Website:
Save my name, email, and website in this browser for the next time I comment.

Bitcoin Exchange Guide
ABOUT B.E.G.
Bitcoin Exchange Guide is a hyperactive hybrid of heavy-handed cryptocurrency content curation creators from christened community contributors who focus on delivering today's bitcoin news, cryptoasset user guides and latest blockchain updates.
Reply