These are my notes from the Private Fund Compliance Forum 2013. They are live from the Forum so please forgive my typos. Robert E. Phay, Jr., Associate General Counsel & Chief Compliance Officer, Commonfund The common sense answer should be “nothing”. But that does not seem to be the case. The CFTC seems to be … Read more »
Tag: Commodity Pool
Mortgage REITs Get Relief from the CFTC
The CFTC continues the journey out of the hole it dug itself. In February the CFTC stated that one swap contract would be enough to trigger the registration requirement. This runs with the CFTC long standing narrow interpretation of the commodity pool definition. The CFTC retreated from this position with respect to REITs in October. … Read more »
What is a Commodity Pool?
The CFTC stretched when it said that a fund entering into even a single swap used purely for hedging purposes — will hold “commodity interests” and accordingly could be viewed as commodity pools by the CFTC. The CFTC has construed the concept of commodity pool broadly and has consistently maintained that there is no minimum … Read more »
REITs and the CFTC
Dodd-Frank’s Title VII is likely to sweep a bunch of private equity fund operators under the CFTC’s registration requirement. The CFTC stated that a single interest rate swap or foreign exchange hedge could drag the fund manager into the definition of “Commodity Pool Operator” (7 USC §1a(10) and have to register with the CFTC. The … Read more »