Dec 15, 2023 | News

Commodity Pool Compliance Reminders

The CFTC mandates that any individual claiming an exemption from CPO registration under CFTC Regulation 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), 4.13(a)(5), an exclusion from CPO registration under CFTC Regulation 4.5, or an exemption from CTA registration under 4.14(a)(8) (collectively referred to as “exemption”) must affirm the applicable notice of exemption annually within 60 days of the calendar year end, which is February 29, 2024, for the current affirmation cycle.

Those re-affirming an exemption under 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), and 4.13(a)(5) must confirm that neither they nor their principals have any statutory disqualifications listed under Section 8a(2) of the Commodity Exchange Act in their background.

Failure to affirm an active exemption from CPO or CTA registration will lead to the withdrawal of the exemption on March 1, 2024. For registered CPOs or CTAs, this withdrawal subjects the entity to Part 4 Requirements, regardless of remaining eligibility for the exemption. Non-registrants may face enforcement action by the CFTC if they continue to operate without registration or exemption.

To complete the affirmation process, access the Exemptions System on NFA’s website. After logging in, users will find an Exemptions Index listing firm and pool level exemptions. Exemptions requiring affirmation will be marked, and clicking the “Affirm” icon initiates the affirmation process.

The Exemptions System allows simultaneous affirmation of multiple exemptions by clicking “AFFIRM ALL” below the Exemptions table. Verification of affirmed exemptions can be done through the “Affirm” column in NFA’s Exemptions System or by checking BASIC.

Multi-factor authentication (MFA) is mandatory for accessing any NFA system, including the Exemptions System. MFA requires users to provide an additional verification factor, delivered via email, text message, or an authenticator app.

Frequently Asked Questions:

  1. Username and Password Recovery: Passwords expire every 60 days, and recovery instructions are available by clicking “Forgot User Name or Password” on the login screen or contacting NFA’s Information Center.
  2. Affirmation Frequency: Affirm each applicable exemption annually within 60 days of December 31, with NFA sending email reminders.
  3. Inactive Pool Exemptions: Registered CPOs can update records by withdrawing exemptions. Non-registered entities must email
  4. Loss of Qualification for Exemption: If not affirmed by February 29, 2024, exemptions are automatically withdrawn. Firms may need CPO and/or CTA registration and NFA membership.
  5. Communication of Affirmation: NFA’s BASIC system reflects affirmation dates for each exemption.
  6. Verification of Exemption Affirmation: BASIC and a spreadsheet in the Member’s Annual Questionnaire can be accessed to check affirmation status.
  7. New Exemptions During Affirmation Period: Exemptions filed during the affirmation period (December 1, 2023 – February 29, 2024) do not require affirmation until the following year (60 days after December 31, 2024).