MFA Submits Proposals for the CFTC to Consider with Respect to §4.13(a)(3)

The MFA submitted a comment letter to the CFTC urging it to consider adopting new guidance on the application of CFTC Rule 4.13(a)(3) for funds that invest in other collective investment vehicles, including certain securitization vehicles, ETFs, mortgage REITs, and private funds.  According to the letter, the CFTC did not classify such products as commodity pools at the time when many of these vehicles were created, and at the time when funds invested in them.  The MFA asserts that this new categorization makes the CFTC registration rule changes particularly problematic and potentially very disruptive to strategies of private funds, because “members largely cannot secure contractual arrangements with underlying funds, and generally cannot obtain daily, weekly, or even monthly information on an underlying fund’s commodity interest exposure.”  Recommendations are included within the letter. 

Click here to view letter in full (links externally to MFA website).