cfr_sections
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32 rows where part_number = 4 and title_number = 17 sorted by section_id
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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 17:17:1.0.1.1.4.1.7.1 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.1 Requirements as to form. | CFTC | [46 FR 26013, May 8, 1981, as amended at 46 FR 63035, Dec. 30, 1981; 62 FR 39115, July 22, 1997] | (a) Each document distributed pursuant to this part 4 must be: (1) Clear and legible; (2) Paginated; and (3) Fastened in a secure manner. (b) Information that is required to be “prominently” disclosed under this part 4 must be displayed in capital letters and in boldface type. (c) Where a document is distributed through an electronic medium: (1) The requirements of paragraphs (a) of this section shall mean that required information must be presented in a format that is readily communicated to the recipient. For purposes of this paragraph (c), information is readily communicated to the recipient if it is accessible to the ordinary user by means of commonly available hardware and software and if the electronically delivered document is organized in substantially the same manner as would be required for a paper document with respect to the order of presentation and the relative prominence of information. Where a table of contents is required, the electronic document must either include page numbers in the text or employ a substantially equivalent cross-reference or indexing method or tool; (2) The requirements of paragraph (b) of this section shall mean that such information must be presented in capital letters and boldface type or, as warranted in the context, another manner reasonably calculated to draw the recipient's attention to the information and accord it greater prominence than the surrounding text; and (3) A complete paper version of the document that complies with the applicable provisions of this part 4 must be provided to the recipient upon request. (d) If graphic, image or audio material is included in a document delivered to a prospective or existing client or pool participant, and such material cannot be reproduced in an electronic filing, a fair and accurate narrative description, tabular representation or transcript of the omitted material must be included in the filed version of the document. Inclusion of such material in a Disclosure Document shall be subject to the requirements of § 4.2… | ||||
| 17:17:1.0.1.1.4.1.7.10 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.12 Exemption from provisions of this part. | CFTC | [52 FR 41984, Nov. 2, 1987, as amended at 60 FR 38183, July 25, 1995; 67 FR 77411, Dec. 18, 2002; 72 FR 1663, Jan. 16, 2007; 75 FR 55428, Sept. 10, 2010; 76 FR 28644, May 18, 2011; 78 FR 52333, Aug. 22, 2013; 86 FR 19420, Apr. 13, 2021] | (a) In general. (1) The Commission may exempt any person or any class or classes of persons from any provision of this part 4 if it finds that the exemption is not contrary to the public interest and the purposes of the provisions from which the exemption is sought. (2) The Commission may grant the exemption subject to such terms and conditions as it may find appropriate. (b) Exemption from subpart B for certain commodity pool operators based on amount and nature of commodity interest trading —(1) Eligibility. Subject to compliance with the provisions of paragraph (d) of this section, any person who is registered as a commodity pool operator, or has applied for such registration, may claim any or all of the relief available under paragraph (b)(2) of this section if: (i) The pool for which it makes such claim: (A) Will be offered and sold pursuant to the Securities Act of 1933 or pursuant to an exemption from said Act; (B) Will generally and routinely engage in the buying and selling of securities and securities derived instruments; (C) Will not enter into commodity interest transactions for which the aggregate initial margin and premiums, and required minimum security deposit for retail forex transactions (as defined in § 5.1(m) of this chapter) exceed 10 percent of the fair market value of the pool's assets, after taking into account unrealized profits and unrealized losses on any such contracts it has entered into; Provided, however, That in the case of an option that is in-the-money at the time of purchase, the in-the-money amount as defined in § 190.01 of this chapter may be excluded in computing such 10 percent; and (D) Will trade such commodity interests in a manner solely incidental to its securities trading activities. (ii) Each existing participant and prospective participant in the pool for which it makes such request is informed in writing of the restrictions set forth in paragraph (b)(1)(i) (C) and (D) of this section prior to the date the pool commences trading commodity interests. The… | ||||
| 17:17:1.0.1.1.4.1.7.11 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.13 Exemption from registration as a commodity pool operator. | CFTC | [46 FR 26013, May 8, 1981, as amended at 46 FR 63035, Dec. 30, 1981; 47 FR 57011, Dec. 22, 1982; 50 FR 15883, Apr. 23, 1985; 67 FR 77411, Dec. 18, 2002; 68 FR 47231, Aug. 8, 2003; 68 FR 59113, Oct. 14, 2003; 69 FR 41426, July 9, 2004; 72 FR 1663, Jan. 16, 2007; 74 FR 57590, Nov. 9, 2009; 75 FR 55428, Sept. 10, 2010; 76 FR 28645, May 18, 2011; 77 FR 11284, Feb. 24, 2012; 77 FR 17329, Mar. 26, 2012; 84 FR 67368, Dec. 10, 2019; 85 FR 40890, July 8, 2020; 86 FR 19421, Apr. 13, 2021] | This section is organized as follows: Paragraph (a) of this section specifies the criteria that must be met to qualify for exemption from registration under this section; paragraph (b) of this section governs the notice that must be filed to claim exemption from registration; paragraph (c) of this section sets forth the continuing obligations of a person who has claimed exemption under this section; paragraph (d) of this section specifies information certain persons must provide if they subsequently register; paragraph (e) of this section specifies the effect of registration on a person who has claimed an exemption from registration under this section or who is eligible to claim an exemption from registration hereunder; and paragraph (f) of this section specifies the effect of this section on § 4.5 of this chapter. (a) A person is not required to register under the Act as a commodity pool operator if: (1)(i) It does not receive any compensation or other payment, directly or indirectly, for operating the pool, except reimbursement for the ordinary administrative expenses of operating the pool; (ii) It operates only one commodity pool at any time; (iii) It is not otherwise required to register with the Commission and is not a business affiliate of any person required to register with the Commission; and (iv) Neither the person nor any other person involved with the pool does any advertising in connection with the pool (for purposes of this section, advertising includes the systematic solicitation of prospective participants by telephone or seminar presentation); (2)(i) None of the pools operated by it has more than 15 participants at any time; and (ii) The total gross capital contributions it receives for units of participation in all of the pools it operates or that it intends to operate do not in the aggregate exceed $400,000. (iii) For the purpose of determining eligibility for exemption under paragraph (a)(2) of this section, the person may exclude the following participants and their contributions: (A… | ||||
| 17:17:1.0.1.1.4.1.7.12 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.14 Exemption from registration as a commodity trading advisor. | CFTC | [46 FR 26013, May 8, 1981; 46 FR 26761, May 15, 1981; 48 FR 35298, Aug. 3, 1983; 49 FR 5526, Feb. 13, 1984; 52 FR 41985, Nov. 2, 1987; 52 FR 43827, Nov. 16, 1987; 65 FR 12943, Mar. 10, 2000; 67 FR 77411, Dec. 18, 2002; 68 FR 47233, Aug. 8, 2003; 68 FR 52837, Sept. 8, 2003; 68 FR 59114, Oct. 14, 2003; 72 FR 1664, Jan. 16, 2007; 75 FR 55428, Sept. 10, 2010; 77 FR 11284, Feb. 24, 2012; 77 FR 17330, Mar. 26, 2012; 84 FR 67368, Dec. 10, 2019; 89 FR 78813, Sept. 26, 2024] | This section is organized as follows: Paragraph (a) of this section specifies the criteria that must be met to qualify for exemption from registration under this section, including the notice of exemption from registration and continuing obligations of persons who have claimed exemption under paragraph (a)(8) of this section; paragraph (b) of this section concerns “cash market transactions”; and paragraph (c) of this section specifies the effect of registration on a person who has claimed an exemption from registration under this section or who is eligible to claim an exemption from registration hereunder. (a) A person is not required to register under the Act as a commodity trading advisor if: (1) It is a dealer, processor, broker, or seller in cash market transactions of any commodity (or product thereof) and the person's commodity trading advice is solely incidental to the conduct of its cash market business; (2) It is a non-profit, voluntary membership, trade association or farm organization and the person's commodity trading advice is solely incidental to the conduct of its business as such association or organization; (3) It is registered under the Act as an associated person and the person's commodity trading advice is issued solely in connection with its employment as an associated person; (4) It is registered under the Act as a commodity pool operator and the person's commodity trading advice is directed solely to, and for the sole use of, the pool or pools for which it is so registered; (5) It is exempt from registration as a commodity pool operator and the person's commodity trading advice is directed solely to, and for the sole use of, the pool or pools for which it is so exempt; (6) It is registered under the Act as an introducing broker and the person's trading advice is solely in connection with its business as an introducing broker; (7)(i) It is registered under the Act as a leverage transaction merchant and the person's trading advice is solely in connection with its business as a leverag… | ||||
| 17:17:1.0.1.1.4.1.7.13 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.15 Continued applicability of antifraud section. | CFTC | [50 FR 15884, Apr. 23, 1985] | The provisions of section 4 o of the Act shall apply to any person even though such person is exempt from registration under this part 4, and it shall continue to be unlawful for any such person to violate section 4 o of the Act. | ||||
| 17:17:1.0.1.1.4.1.7.14 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.16 Prohibited representations. | CFTC | It shall be unlawful for any commodity pool operator, commodity trading advisor, principal thereof or person who solicits therefor to represent or imply in any manner whatsoever that such commodity pool operator or commodity trading advisor has been sponsored, recommended or approved, or that its abilities or qualifications have in any respect been passed upon, by the Commission, the Federal government or any agency thereof. | |||||
| 17:17:1.0.1.1.4.1.7.15 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.17 Severability. | CFTC | [78 FR 52333, Aug. 22, 2013] | If any provision of this part, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or application of such provision to other persons or circumstances which can be given effect without the invalid provision or application. | ||||
| 17:17:1.0.1.1.4.1.7.2 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | §§ 4.2-4.4 [Reserved] | CFTC | ||||||
| 17:17:1.0.1.1.4.1.7.3 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.5 Exclusion for certain otherwise regulated persons from the definition of the term “commodity pool operator.” | CFTC | [50 FR 15882, Apr. 23, 1985; 50 FR 18859, May 3, 1985, as amended at 58 FR 6374, Jan. 28, 1993; 58 FR 43793, Aug. 18, 1993; 65 FR 24128, Apr. 25, 2000; 65 FR 25980, May 4, 2000; 67 FR 77410, Dec. 18, 2002; 68 FR 47230, Aug. 8, 2003; 72 FR 1662, Jan. 16, 2007; 77 FR 11283, Feb. 24, 2012; 77 FR 17328, Mar. 26, 2012; 83 FR 7995, Feb. 23, 2018; 84 FR 67353, Dec. 10, 2019; 86 FR 19420, Apr. 13, 2021] | (a) Subject to compliance with the provisions of this section, the following persons, and any principal or employee thereof, shall be excluded from the definition of the term “commodity pool operator” with respect to the operation of a qualifying entity specified in paragraph (b) of this section: (1) An investment adviser registered under the Investment Advisers Act of 1940, as amended; (2) An insurance company subject to regulation by any State; (3) A bank, trust company or any other such financial depository institution subject to regulation by any State or the United States; and (4) A trustee of, a named fiduciary of (or a person designated or acting as a fiduciary pursuant to a written delegation from or other written agreement with the named fiduciary) or an employer maintaining a pension plan that is subject to title I of the Employee Retirement Income Security Act of 1974; Provided, however, That for purposes of this § 4.5 the following employee benefit plans shall not be construed to be pools: (i) A noncontributory plan, whether defined benefit or defined contribution, covered under title I of the Employee Retirement Income Security Act of 1974; (ii) A contributory defined benefit plan covered under title IV of the Employee Retirement Income Security Act of 1974; Provided, however, That with respect to any such plan to which an employee may voluntarily contribute, no portion of an employee's contribution is committed as margin or premiums for futures or options contracts; (iii) A plan defined as a governmental plan in section 3(32) of title I of the Employee Retirement Income Security Act of 1974; (iv) Any employee welfare benefit plan that is subject to the fiduciary responsibility provisions of the Employee Retirement Income Security Act of 1974; and (v) A plan defined as a church plan in Section 3(33) of title I of the Employee Retirement Income Security Act of 1974 with respect to which no election has been made under 26 U.S.C. 410(d). (b) For the purposes of this section, the term “qual… | ||||
| 17:17:1.0.1.1.4.1.7.4 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.6 Exclusion for certain otherwise regulated persons from the definition of the term “commodity trading advisor.” | CFTC | [52 FR 41984, Nov. 2, 1987, as amended at 77 FR 9822, Feb. 17, 2012] | (a) Subject to compliance with the provisions of this section, the following persons, and any principal or employee thereof, shall be excluded from the definition of the term “commodity trading advisor:” (1) An insurance company subject to regulation by any State, or any wholly-owned subsidiary or employee thereof; Provided, however, That its commodity interest advisory activities are solely incidental to the conduct of the insurance business of the insurance company as such; and (2) A person who is excluded from the definition of the term “commodity pool operator” by § 4.5; Provided, however, That: (i) Its commodity interest advisory activities are solely incidental to its operation of those trading vehicles for which § 4.5 provides relief; and (ii) Where necessary, prior to providing any commodity interest trading advice to any such trading vehicle the person files a notice of eligibility as specified in § 4.5 to claim the relief available under that section. (3) A swap dealer registered with the Commission as such pursuant to the Act or excluded or exempt from registration under the Act or the Commission's regulations; Provided, however, That the commodity interest and swap advisory activities of the swap dealer are solely incidental to the conduct of its business as a swap dealer. (b) Any person who has claimed an exclusion under this § 4.6 must submit to such special calls as the Commission may make to require the person to demonstrate compliance with the provisions of paragraph (a) of this section. (c) An exclusion claimed under this § 4.6 shall cease to be effective upon any change which would render the person claiming the exclusion ineligible under paragraph (a) of this section. | ||||
| 17:17:1.0.1.1.4.1.7.5 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.7 Exemption from certain part 4 requirements for commodity pool operators with respect to offerings to qualified eligible persons and for commodity trading advisors with respect to advising qualified eligible persons. | CFTC | [65 FR 47854, Aug. 4, 2000, as amended at 67 FR 77411, Dec. 18, 2002; 68 FR 47231, Aug. 8, 2003; 71 FR 8942, Feb. 22, 2006; 72 FR 1662, Jan. 16, 2007; 74 FR 57590, Nov. 9, 2009; 75 FR 55428, Sept. 10, 2010; 77 FR 11284, Feb. 24, 2012; 77 FR 17329, Mar. 26, 2012; 77 FR 54358, Sept. 5, 2012; 78 FR 52333, Aug. 22, 2013; 81 FR 85154, Nov. 25, 2016; 84 FR 67367, Dec. 10, 2019; 89 FR 78810, Sept. 26, 2024] | This section is organized as follows: Paragraph (a) contains definitions for the purposes of § 4.7; paragraph (b) contains the relief available to commodity pool operators under § 4.7; paragraph (c) contains the relief available to commodity trading advisors under § 4.7; paragraph (d) concerns the Notice of Claim for Exemption under § 4.7; and paragraph (e) addresses the effect of an insignificant deviation from a term, condition or requirement of § 4.7. (a) Definitions. (1) Affiliate of, or a person affiliated with, a specified person means a person that directly or indirectly through one or more persons, controls, is controlled by, or is under common control with the specified person. (2) Exempt account means the account of a qualified eligible person that is directed or guided by a commodity trading advisor pursuant to an effective claim for exemption under this section. (3) Exempt pool means a pool that is operated pursuant to an effective claim for exemption under this section. (4) Non-United States person means: (i) A natural person who is not a resident of the United States; (ii) A partnership, corporation or other entity, other than an entity organized principally for passive investment, organized under the laws of a foreign jurisdiction and which has its principal place of business in a foreign jurisdiction; (iii) An estate or trust, the income of which is not subject to United States income tax regardless of source; (iv) An entity organized principally for passive investment such as a pool, investment company or other similar entity; Provided, That units of participation in the entity held by persons who do not qualify as Non-United States persons or otherwise as qualified eligible persons represent in the aggregate less than 10% of the beneficial interest in the entity, and that such entity was not formed principally for the purpose of facilitating investment by persons who do not qualify as Non-United States persons in a pool with respect to which the operator is exempt from cert… | ||||
| 17:17:1.0.1.1.4.1.7.6 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.8 Exemption from certain requirements of rule 4.26 with respect to pools offered or sold in certain offerings exempt from registration under the Securities Act. | CFTC | [57 FR 34865, Aug. 7, 1992; 57 FR 41173, Sept. 9, 1992, as amended at 60 FR 38182, July 25, 1995; 72 FR 1662, Jan. 16, 2007] | (a) Notwithstanding paragraph (d) of § 4.26 and subject to the conditions specified herein, the registered commodity pool operator of a pool offered or sold solely to “accredited investors” as defined in 17 CFR 230.501 in an offering exempt from the registration requirements of the Securities Act of 1933 pursuant to Rule 505 or 506 of Regulation D, 17 CFR 230.505 or 230.506, may solicit, accept and receive funds, securities and other property from prospective participants in that pool upon filing with the National Futures Association and providing to such participants the Disclosure Document for the pool. (b) Notwithstanding paragraph (d) of § 4.26 and subject to the conditions specified herein, the registered commodity pool operator of a pool offered or sold in an offering exempt from the registration requirements of the Securities Act of 1933 pursuant to Rule 505 or 506 of Regulation D, 17 CFR 230.505 or 230.506, that is operated in compliance with, and has filed the notice required by § 4.12(b) may solicit, accept and receive funds, securities and other property from prospective participants in that pool upon filing with the National Futures Association and providing to such participants the Disclosure Document for the pool. (c) The relief provided under § 4.8 is not available if an enforcement proceeding brought by the Commission under the Act or the regulations is pending against the commodity pool operator or any of its principals or if the commodity pool operator or any of its principals is subject to any statutory disqualification under §§ 8a(2) or 8a(3) of the Act. | ||||
| 17:17:1.0.1.1.4.1.7.7 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.9 [Reserved] | CFTC | ||||||
| 17:17:1.0.1.1.4.1.7.8 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.10 Definitions. | CFTC | [46 FR 26013, May 9, 1981, as amended at 49 FR 8225, Mar. 5, 1984; 60 FR 38182, July 25, 1995; 66 FR 53522, Oct. 23, 2001; 68 FR 42967, July 21, 2003; 72 FR 63979, Nov. 14, 2007] | For purposes of this part: (a) [Reserved] (b) Net asset value means total assets minus total liabilities, determined in accord with generally accepted accounting principles, with each position in a commodity interest accounted for at fair market value. (c) Participant means any person that has any direct financial interest in a pool (e.g., a limited partner). (d)(1) Pool means any investment trust, syndicate or similar form of enterprise operated for the purpose of trading commodity interests. (2) Multi-advisor pool means a pool in which: (i) No commodity trading advisor is allocated or intended to be allocated more than twenty-five percent of the pool's funds available for commodity interest trading; and (ii) No investee pool is allocated or intended to be allocated more than twenty-five percent of the pool's net asset value. (3) Principal-protected pool means a pool (commonly referred to as a “guaranteed pool”) that is designed to limit the loss of the initial investment of its participants. (4) Investee pool means any pool in which another pool or account participates or invests, e.g., as a limited partner thereof. (5) Major investee pool means, with respect to a pool, any investee pool that is allocated or intended to be allocated at least ten percent of the net asset value of the pool. (e)(1) Principal, when referring to a person that is a principal of a particular entity, shall have the same meaning as the term “principal” under § 3.1(a) of this chapter. (2) Trading principal means: (i) With respect to a commodity pool operator, a principal who participates in making trading decisions for a pool, or who supervises, or has authority to allocate pool assets to, persons so engaged; and (ii) With respect to a commodity trading advisor, a principal who participates in making trading decisions for the account of a client or who supervises or selects persons so engaged. (f) Direct, as used in the context of trading commodity interest accounts, refers to agreements whereby a perso… | ||||
| 17:17:1.0.1.1.4.1.7.9 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | A | Subpart A—General Provisions, Definitions and Exemptions | § 4.11 Exemption from section 4n(3)(B). | CFTC | The provisions of section 4n(3)(B) of the Act shall not apply to any commodity pool operator or commodity trading advisor that is registered under the Act as such or that is exempt from such registration. | |||||
| 17:17:1.0.1.1.4.2.7.1 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | B | Subpart B—Commodity Pool Operators | § 4.20 Prohibited activities. | CFTC | [46 FR 26013, May 8, 1981, as amended at 46 FR 34311, July 1, 1981; 46 FR 63035, Dec. 30, 1981] | (a)(1) Except as provided in paragraph (a)(2) of this section, a commodity pool operator must operate its pool as an entity cognizable as a legal entity separate from that of the pool operator. (2) The Commission may exempt a corporation from the requirements of paragraph (a)(1) of this section if; (i) The corporation represents in writing to the Commission that each participant in its pool will be issued stock or other evidences of ownership in the corporation for all funds, securities or other property that the participant contributes for the purchase of an ownership interest in the pool; (ii) The corporation demonstrates to the satisfaction of the Commission that it has established procedures adequate to assure compliance with paragraphs (b) and (c) of this section; and (iii) The Commission finds that the exemption is not contrary to the public interest and to the purposes of the provision from which the exemption is sought. (b) All funds, securities or other property received by a commodity pool operator from an existing or prospective pool participant for the purchase of an interest or as an assessment (whether voluntary or involuntary) on an interest in a pool that it operates or that it intends to operate must be received in the pool's name. (c) No commodity pool operator may commingle the property of any pool that it operates or that it intends to operate with the property of any other person. | ||||
| 17:17:1.0.1.1.4.2.7.2 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | B | Subpart B—Commodity Pool Operators | § 4.21 Required delivery of pool Disclosure Document. | CFTC | [60 FR 38183, July 25, 1995, as amended at 62 FR 39115, July 22, 1997; 65 FR 58649, Oct. 2, 2000; 68 FR 47234, Aug. 8, 2003; 78 FR 52333, Aug. 22, 2013; 89 FR 78813, Sept. 26, 2024] | (a)(1) Subject to the provisions of paragraph (a)(2) of this section, each commodity pool operator registered or required to be registered under the Act must deliver or cause to be delivered to a prospective participant in a pool that it operates or intends to operate a Disclosure Document for the pool prepared in accordance with §§ 4.24 and 4.25 by no later than the time it delivers to the prospective participant a subscription agreement for the pool; Provided, That any information distributed in advance of the delivery of the Disclosure Document to a prospective participant is consistent with or amended by the information contained in the Disclosure Document and with the obligations of the commodity pool operator under the Act, the Commission's regulations issued thereunder, and the laws of any other applicable federal or state authority; Provided, further, That in the event such previously distributed information is amended by the Disclosure Document in any material respect, the prospective participant must be in receipt of the Disclosure Document at least 48 hours prior to its subscription being accepted by the pool operator. (2) For the purpose of the Disclosure Document delivery requirement in this part, including any offering memorandum delivered pursuant to § 4.7(b)(2)(i) or § 4.12(b)(2)(i), the term “prospective pool participant” does not include a commodity pool operated by a pool operator that is the same as, or that controls, is controlled by, or is under common control with, the pool operator of the offered pool. (b) [Reserved] | ||||
| 17:17:1.0.1.1.4.2.7.3 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | B | Subpart B—Commodity Pool Operators | § 4.22 Reporting to pool participants. | CFTC | [46 FR 26013, May 8, 1981, as amended at 46 FR 63035, Dec. 30, 1981; 47 FR 57011, Dec. 22, 1982; 52 FR 41986, Nov. 2, 1987; 65 FR 81334, Dec. 26, 2000; 67 FR 77411, Dec. 18, 2002; 68 FR 47234, Aug. 8, 2003; 68 FR 52837, Sept. 8, 2003; 71 FR 8942, Feb. 22, 2006; 74 FR 57590, Nov. 9, 2009; 77 FR 54358, Sept. 5, 2012; 81 FR 85154, Nov. 25, 2016; 89 FR 78813, Sept. 26, 2024] | (a) Except as provided in paragraph (a)(4) or (a)(6) of this section, each commodity pool operator registered or required to be registered under the Act must periodically distribute to each participant in each pool that it operates, within 30 calendar days after the last date of the reporting period prescribed in paragraph (b) of this section, an Account Statement, which shall be presented in the form of a Statement of Operations and a Statement of Changes in Net Assets, for the prescribed period. These financial statements must be presented and computed in accordance with generally accepted accounting principles consistently applied. The Account Statement must be signed in accordance with paragraph (h) of this section. (1) The portion of the Account Statement which must be presented in the form of a Statement of Operations must separately itemize the following information: (i) The total amount of realized net gain or loss on commodity interest positions liquidated during the reporting period; (ii) The change in unrealized net gain or loss on commodity interest positions during the reporting period; (iii) The total amount of net gain or loss from all other transactions in which the pool engaged during the reporting period, including interest and dividends earned on funds not paid as premiums or used to margin the pool's commodity interest positions; (iv) The total amount of all management fees during the reporting period; (v) The total amount of all advisory fees during the reporting period; (vi) The total amount of all brokerage commissions during the reporting period; (vii) The total amount of other fees for commodity interest and other investment transactions during the reporting period; and (viii) The total amount of all other expenses incurred or accrued by the pool during the reporting period. (2) The portion of the Account Statement that must be presented in the form of a Statement of Changes in Net Assets must separately itemize the following information: (i) The net asset value of the pool as … | ||||
| 17:17:1.0.1.1.4.2.7.4 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | B | Subpart B—Commodity Pool Operators | § 4.23 Recordkeeping. | CFTC | [46 FR 26013, May 8, 1981, as amended at 46 FR 63035, Dec. 30, 1981; 47 FR 57011, Dec. 22, 1982; 48 FR 35299, Aug. 3, 1983; 60 FR 38183, July 25, 1995; 71 FR 8943, Feb. 22, 2006; 75 FR 55428, Sept. 10, 2010; 77 FR 54358, Sept. 5, 2012; 77 FR 66332, Nov. 2, 2012; 78 FR 52334, Aug. 22, 2013] | Each commodity pool operator registered or required to be registered under the Act must make and keep the following books and records in an accurate, current and orderly manner. Books and records that are not maintained at the pool operator's main business office shall be maintained by one or more of the following: the pool's administrator, distributor or custodian, or a bank or registered broker or dealer acting in a similar capacity with respect to the pool. All books and records shall be maintained in accordance with § 1.31. All books and records required by this section except those required by paragraphs (a)(3), (a)(4), (b)(1), (b)(2) and (b)(3) must be made available to participants for inspection and copying during normal business hours. Upon request, copies must be sent by mail to any participant within five business days if reasonable reproduction and distribution costs are paid by the pool participant. If the books and records are maintained at the commodity pool operator's main business office that is outside the United States, its territories or possessions, then upon the request of a Commission representative, the pool operator must provide such books and records as requested at the place in the United States, its territories or possessions designated by the representative within 72 hours after the pool operator receives the request. (a) Concerning the commodity pool: (1) An itemized daily record of each commodity interest transaction of the pool, showing the transaction date, quantity, commodity interest, and, as applicable, price or premium, delivery month or expiration date, whether a put or a call, strike price, underlying contract for future delivery or underlying commodity, swap type and counterparty, the futures commission merchant and/or retail foreign exchange dealer carrying the account and the introducing broker, if any, whether the commodity interest was purchased, sold (including, in the case of a retail forex transaction, offset), exercised, expired (including, in the case of a retai… | ||||
| 17:17:1.0.1.1.4.2.7.5 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | B | Subpart B—Commodity Pool Operators | § 4.24 General disclosures required. | CFTC | [60 FR 38183, July 25, 1995, as amended at 63 FR 58303, Oct. 30, 1998; 66 FR 53522, Oct. 23, 2001; 75 FR 55429, Sept. 10, 2010; 76 FR 44264, July 25, 2011; 77 FR 11285, Feb. 24, 2012; 77 FR 17330, Mar. 26, 2012; 77 FR 54358, Sept. 5, 2012] | Except as otherwise provided herein, a Disclosure Document must include the following information. (a) Cautionary Statement. The following Cautionary Statement must be prominently displayed on the cover page of the Disclosure Document. THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT. THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT. (b) Risk Disclosure Statement. (1) The following Risk Disclosure Statement must be prominently displayed immediately following any disclosures required to appear on the cover page of the Disclosure Document as provided by the Commission, by any applicable federal or state securities laws and regulations or by any applicable laws of non-United States jurisdictions. RISK DISCLOSURE STATEMENT YOU SHOULD CAREFULLY CONSIDER WHETHER YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN A COMMODITY POOL. IN SO DOING, YOU SHOULD BE AWARE THAT COMMODITY INTEREST TRADING CAN QUICKLY LEAD TO LARGE LOSSES AS WELL AS GAINS. SUCH TRADING LOSSES CAN SHARPLY REDUCE THE NET ASSET VALUE OF THE POOL AND CONSEQUENTLY THE VALUE OF YOUR INTEREST IN THE POOL. IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT YOUR ABILITY TO WITHDRAW YOUR PARTICIPATION IN THE POOL. IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT YOUR ABILITY TO WITHDRAW YOUR PARTICIPATION IN THE POOL. FURTHER, COMMODITY POOLS MAY BE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT, AND ADVISORY AND BROKERAGE FEES. IT MAY BE NECESSARY FOR THOSE POOLS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THIS DISCLOSURE DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF EACH EXPENSE TO BE CHARGED THIS POOL AT PAGE (insert page number) AND A STATEMENT OF THE PERCENTAGE RETURN NECESSARY TO BREAK… | ||||
| 17:17:1.0.1.1.4.2.7.6 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | B | Subpart B—Commodity Pool Operators | § 4.25 Performance disclosures. | CFTC | [60 FR 38186, July 25, 1995, as amended at 63 FR 58303, Oct. 30, 1998; 68 FR 42967, July 21, 2003; 75 FR 55429, Sept. 10, 2010] | (a) General principles —(1) Capsule performance information —(i) For pools. Unless otherwise specified, disclosure of the past performance of a pool must include the following information. Amounts shown must be net of any fees, expenses or allocations to the commodity pool operator. (A) The name of the pool; (B) A statement as to whether the pool is: ( 1 ) Privately offered pursuant to section 4(2) of the Securities Act of 1933, as amended (15 U.S.C. 77d(2)), or pursuant to Regulation D thereunder (17 CFR 230.501 et seq. ); ( 2 ) A multi-advisor pool as defined in § 4.10(d)(2); and ( 3 ) A principal-protected pool as defined in § 4.10(d)(3); (C) The date of inception of trading; (D) The aggregate gross capital subscriptions to the pool; (E) The pool's current net asset value; (F) The largest monthly draw-down during the most recent five calendar years and year-to-date, expressed as a percentage of the pool's net asset value and indicating the month and year of the draw-down (the capsule must include a definition of “draw-down” that is consistent with § 4.10(k)); (G) The worst peak-to-valley draw-down during the most recent five calendar years and year-to-date, expressed as a percentage of the pool's net asset value and indicating the months and year of the draw-down; and (H) Subject to § 4.25(a)(2) for the offered pool, the annual and year-to-date rate of return for the pool for the most recent five calendar years and year-to-date, computed on a compounded monthly basis; (ii) For accounts. Disclosure of the past performance of an account required under this § 4.25 must include the following capsule performance information: (A) The name of the commodity trading advisor or other person trading the account and the name of the trading program; (B) The date on which the commodity trading advisor or other person trading the account began trading client accounts and the date when client funds began being traded pursuant to the trading program; (C) The number of accounts directed by the commodity tr… | ||||
| 17:17:1.0.1.1.4.2.7.7 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | B | Subpart B—Commodity Pool Operators | § 4.26 Use, amendment and filing of Disclosure Document. | CFTC | [60 FR 38188, July 25, 1995, as amended at 62 FR 18268, Apr. 15, 1997; 65 FR 58649, Oct. 2, 2000; 67 FR 42710, June 25, 2002; 67 FR 77411, Dec. 18, 2002; 68 FR 12584, Mar. 17, 2003; 74 FR 9569, Mar. 5, 2009; 78 FR 52335, Aug. 22, 2013] | (a)(1) Subject to paragraph (c) of this section, all information contained in the Disclosure Document and, where used, profile document, must be current as of the date of the Document; Provided, however, that performance information may be current as of a date not more than three months prior to the date of the Document. (2) No commodity pool operator may use a Disclosure Document or profile document dated more than twelve months prior to the date of its use. (b) The commodity pool operator must attach to the Disclosure Document the most current Account Statement and Annual Report for the pool required to be distributed in accordance with § 4.22; provided, however, that in lieu of the most current Account Statement the commodity pool operator may provide performance information for the pool current as of a date not more than sixty days prior to the date on which the Disclosure Document is distributed and covering the period since the most recent performance information contained in the Disclosure Document. (c)(1) If the commodity pool operator knows or should know that the Disclosure Document or profile document is materially inaccurate or incomplete in any respect, it must correct that defect and must distribute the correction to: (i) All existing pool participants within 21 calendar days of the date upon which the pool operator first knows or has reason to know of the defect; and (ii) Each previously solicited prospective pool participant prior to accepting or receiving funds, securities or other property from any such prospective participant. (2) The pool operator may furnish the correction by any of the following means: (i) An amended Disclosure Document or profile document; (ii) With respect to a hard copy of the Disclosure Document, a sticker affixed to the Disclosure Document; or (iii) Other similar means. (3) The pool operator may not use the Disclosure Document or profile document until such correction has been made. (d) Except as provided by § 4.8: (1) The commodity pool operator must electr… | ||||
| 17:17:1.0.1.1.4.2.7.8 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | B | Subpart B—Commodity Pool Operators | § 4.27 Additional reporting by commodity pool operators and commodity trading advisors. | CFTC | [77 FR 17330, Mar. 26, 2012, as amended at 81 FR 85155, Nov. 25, 2016; 84 FR 67354, Dec. 10, 2019; 85 FR 71789, Nov. 10, 2020] | (a) General definitions. For the purposes of this section: (1) Commodity pool operator or CPO has the same meaning as commodity pool operator defined in section 1a(11) of the Commodity Exchange Act; (2) Commodity trading advisor or CTA has the same meaning as defined in section 1a(12); (3) Direct has the same meaning as defined in section 4.10(f); (4) Net asset value or NAV has the same meaning as net asset value as defined in section 4.10(b); (5) Pool has the same meaning as defined in section 1(a)(10) of the Commodity Exchange Act; (6) Reporting period means the reporting period as defined in the forms promulgated hereunder; (b) Persons required to report. (1) Except as provided in paragraph (b)(2) of this section, a reporting person is: (i) Any commodity pool operator that is registered or required to be registered under the Commodity Exchange Act and the Commission's regulations thereunder; or (ii) Any commodity trading advisor that is registered or required to be registered under the Commodity Exchange Act and the Commission's regulations thereunder. (2) The following categories of persons shall not be considered reporting persons, as that term is defined in paragraph (b)(1) of this section: (i) A commodity pool operator that is registered, but operates only pools for which it maintains an exclusion from the definition of the term “commodity pool operator” in § 4.5 and/or an exemption from registration as a commodity pool operator in § 4.13; (ii) A commodity trading advisor that is registered, but does not direct, as that term is defined in § 4.10(f), the trading of any commodity interest accounts; (iii) A commodity trading advisor that is registered, but directs only the accounts of commodity pools for which it is registered as a commodity pool operator and, though registered, complies with § 4.14(a)(4); and (iv) A commodity trading advisor that is registered, but directs only the accounts of commodity pools for which it is exempt from registration as a commodity pool ope… | ||||
| 17:17:1.0.1.1.4.3.7.1 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | C | Subpart C—Commodity Trading Advisors | § 4.30 Prohibited activities. | CFTC | [77 FR 54359, Sept. 5, 2012] | (a) Except as provided in paragraph (b) of this section, no commodity trading advisor may solicit, accept or receive from an existing or prospective client funds, securities or other property in the trading advisor's name (or extend credit in lieu thereof) to purchase, margin, guarantee or secure any commodity interest of the client. (b) The prohibition in paragraph (a) of this section shall not apply to: (1) A futures commission merchant that is registered as such under the Act; (2) A leverage transaction merchant that is registered as a commodity trading advisor under the Act; (3) A retail foreign exchange dealer that is registered as such under the Act; or (4) A swap dealer that is registered as such under the Act, with respect to funds, securities or other property accepted to purchase, margin, guarantee or secure any swap that is not cleared through a derivatives clearing organization. | ||||
| 17:17:1.0.1.1.4.3.7.2 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | C | Subpart C—Commodity Trading Advisors | § 4.31 Required delivery of Disclosure Document to prospective clients. | CFTC | [60 FR 38189, July 25, 1995, as amended at 62 FR 39115, July 22, 1997; 68 FR 47235, Aug. 8, 2003; 68 FR 59114, Oct. 14, 2003] | (a) Each commodity trading advisor registered or required to be registered under the Act must deliver or cause to be delivered to a prospective client a Disclosure Document containing the information set forth in §§ 4.34 and 4.35 for the trading program pursuant to which the trading advisor seeks to direct the client's commodity interest account or to guide the client's commodity interest trading by means of a systematic program that recommends specific transactions by no later than the time the trading advisor delivers to the prospective client an advisory agreement to direct or guide the client's account; Provided, That any information distributed in advance of the delivery of the Disclosure Document to a prospective client is consistent with or amended by the information contained in the Disclosure Document and with the obligations of the commodity trading advisor under the Act, the Commission's regulations issued thereunder, and the laws of any other applicable federal or state authority; Provided further, That in the event such previously distributed information is amended by the Disclosure Document in any material respect, the prospective participant must be in receipt of the Disclosure Document at least 48 hours prior to the advisory agreement being accepted by the trading advisor. (b) The commodity trading advisor may not enter into an agreement with a prospective client to direct the client's commodity interest account or to guide the client's commodity interest trading unless the trading advisor first receives from the prospective client an acknowledgment signed and dated by the prospective client stating that the client received a Disclosure Document for the trading program pursuant to which the trading advisor will direct his account or will guide his trading. Where a Disclosure Document is delivered to a prospective client by electronic means, in lieu of a manually signed and dated acknowledgment the trading advisor may establish receipt by electronic means that use a unique identifier to confir… | ||||
| 17:17:1.0.1.1.4.3.7.3 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | C | Subpart C—Commodity Trading Advisors | § 4.32 [Reserved] | CFTC | ||||||
| 17:17:1.0.1.1.4.3.7.4 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | C | Subpart C—Commodity Trading Advisors | § 4.33 Recordkeeping. | CFTC | [46 FR 26013, May 8, 1981, as amended at 46 FR 63035, Dec. 30, 1981; 47 FR 57012, Dec. 22, 1982; 48 FR 35299, Aug. 3, 1983. Redesignated and amended at 60 FR 38189, July 25, 1995; 75 FR 55430, Sept. 10, 2010; 77 FR 54359, Sept. 5, 2012; 77 FR 66332, Nov. 2, 2012] | Each commodity trading advisor registered or required to be registered under the Act must make and keep the following books and records in an accurate, current and orderly manner at its main business office and in accordance with § 1.31. If the commodity trading advisor's main business office is located outside the United States, its territories or possessions, then upon the request of a Commission representative the trading advisor must provide such books and records as requested at the place designated by the representative in the United States, its territories or possessions within 72 hours after receipt of the request. (a) Concerning the clients and subscribers of the commodity trading advisor: (1) The name and address of each client and each subscriber. (2) The acknowledgement specified in § 4.31(b). (3) All powers of attorney and other documents, or copies thereof, authorizing the commodity trading advisor to direct the commodity interest account of a client or subscriber. (4) All other written agreements, or copies thereof, entered into by the commodity trading advisor with any client or subscriber. (5) A list or other record of all commodity interest accounts of clients directed by the commodity trading advisor and of all transactions effected therefor. (6) Copies of each confirmation or acknowledgment of a commodity interest transaction, and each purchase and sale statement and each monthly statement received from a futures commission merchant, a retail foreign exchange dealer or a swap dealer. (7) The original or a copy of each report, letter, circular, memorandum, publication, writing, advertisement or other literature or advice (including the texts of standardized oral presentations and of radio, television, seminar or similar mass media presentations) distributed or caused to be distributed by the commodity trading advisor to any existing or prospective client or subscriber, showing the first date of distribution if not otherwise shown on the document. (b) Concerning the commodity trading ad… | ||||
| 17:17:1.0.1.1.4.3.7.5 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | C | Subpart C—Commodity Trading Advisors | § 4.34 General disclosures required. | CFTC | [60 FR 38189, July 25, 1995, as amended at 66 FR 53522, Oct. 23, 2001; 75 FR 55430, Sept. 10, 2010; 77 FR 11285, Feb. 24, 2012; 77 FR 17330, Mar. 26, 2012; 77 FR 54359, Sept. 5, 2012] | Except as otherwise provided herein, a Disclosure Document must include the following information. (a) Cautionary Statement. The following Cautionary Statement must be prominently displayed on the cover page of the Disclosure Document: THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS TRADING PROGRAM NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT. THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS TRADING PROGRAM NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT. (b) Risk Disclosure Statement. (1) The following Risk Disclosure Statement must be prominently displayed immediately following any disclosures required to appear on the cover page of the Disclosure Document as provided by the Commission, by any applicable federal or state securities laws and regulations or by any applicable laws of non-United States jurisdictions: RISK DISCLOSURE STATEMENT THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE AWARE OF THE FOLLOWING: IF YOU PURCHASE A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS. IF YOU PURCHASE OR SELL A COMMODITY FUTURES CONTRACT OR SELL A COMMODITY OPTION OR ENGAGE IN OFF-EXCHANGE FOREIGN CURRENCY TRADING YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS OR SECURITY DEPOSIT AND ANY ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO NOT PROVIDE THE REQUESTED FUNDS WITHIN THE PRESCRIBED TIME, YOUR POSITION MAY… | ||||
| 17:17:1.0.1.1.4.3.7.6 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | C | Subpart C—Commodity Trading Advisors | § 4.35 Performance disclosures. | CFTC | [60 FR 38191, July 25, 1995, as amended at 68 FR 42967, July 21, 2003; 68 FR 47235, Aug. 8, 2003] | (a) General principles —(1) Capsule performance information. Unless otherwise specified, disclosure of the past performance of an account or trading program required under this § 4.35 must include the following information: (i) The name of the commodity trading advisor or other person trading the account and the name of the trading program; (ii) The date on which the commodity trading advisor or other person trading the account began trading client accounts and the date when client funds began being traded pursuant to the trading program; (iii) The number of accounts directed by the trading advisor or other person trading the account pursuant to the trading program specified, as of the date of the Disclosure Document; (iv)(A) The total assets under the management of the trading advisor or other person trading the account, as of the date of the Disclosure Document; and (B) The total assets traded pursuant to the trading program specified, as of the date of the Disclosure Document; (v) The largest monthly draw-down for the account or trading program specified during the most recent five calendar year and year-to-date expressed as a percentage of client funds and indicating the month and year of the draw-down (the capsule must include a definition of “draw-down” that is consistent with § 4.10(k)); (vi) The worst peak-to-valley draw-down for the trading program specified during the most recent five calendar year and year-to-date, expressed as a percentage of net asset value and indicating the months and year of the draw-down; (vii) Subject to § 4.35(a)(2) for the offered trading program, the annual and year-to-date rate-of-return for the program specified for the five most recent calendar years and year-to-date, computed on a compounded monthly basis; Provided, however, That performance of the offered trading program must include monthly rates of return for such period; and (viii) In the case of the offered trading program: (A)( 1 ) The number of accounts traded pursuant to the offered trading program … | ||||
| 17:17:1.0.1.1.4.3.7.7 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | C | Subpart C—Commodity Trading Advisors | § 4.36 Use, amendment and filing of Disclosure Document. | CFTC | [60 FR 38192, July 25, 1995, as amended at 62 FR 18268, Apr. 15, 1997; 65 FR 58650, Oct. 2, 2000; 67 FR 77411, Dec. 18, 2002; 74 FR 9569, Mar. 5, 2009; 78 FR 52335, Aug. 22, 2013] | (a) Subject to paragraph (c) of this section, all information contained in the Disclosure Document must be current as of the date of the Document; Provided, however, that performance information must be current as of a date not more than three months preceding the date of the Document. (b) No commodity trading advisor may use a Disclosure Document dated more than twelve months prior to the date of its use. (c)(1) If the commodity trading advisor knows or should know that the Disclosure Document is materially inaccurate or incomplete in any respect, it must correct that defect and must distribute the correction to: (i) All existing clients in the trading program within 21 calendar days of the date upon which the trading advisor first knows or has reason to know of the defect; and (ii) Each previously solicited prospective client for the trading program prior to entering into an agreement to direct or to guide such prospective client's commodity interest account pursuant to the program. The trading advisor may furnish the correction by way of an amended Disclosure Document, a sticker on the Document, or other similar means. (2) The trading advisor may not use the Disclosure Document until such correction is made. (d)(1) The commodity trading advisor must electronically file with the National Futures Association, pursuant to the electronic filing procedures of the National Futures Association, the Disclosure Document for each trading program that it offers or that it intends to offer not less than 21 calendar days prior to the date the trading advisor first intends to deliver the Document to a prospective client in the trading program; and (2) The commodity trading advisor must electronically file with the National Futures Association, pursuant to the electronic filing procedures of the National Futures Association, the subsequent amendments to the Disclosure Document for each trading program that it offers or that it intends to offer within 21 calendar days of the date upon which the trading advisor first … | ||||
| 17:17:1.0.1.1.4.4.7.1 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | D | Subpart D—Advertising | § 4.40 [Reserved] | CFTC | ||||||
| 17:17:1.0.1.1.4.4.7.2 | 17 | Commodity and Securities Exchanges | I | 4 | PART 4—COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS | D | Subpart D—Advertising | § 4.41 Advertising by commodity pool operators, commodity trading advisors, and the principals thereof. | CFTC | [46 FR 26013, May 8, 1981, as amended at 46 FR 63035, Dec. 30, 1981; 60 FR 38192, July 25, 1995; 72 FR 8109, Feb. 23, 2007] | (a) No commodity pool operator, commodity trading advisor, or any principal thereof, may advertise in a manner which: (1) Employs any device, scheme or artifice to defraud any participant or client or prospective participant or client; (2) Involves any transaction, practice or course of business which operates as a fraud or deceit upon any participant or client or any prospective participant or client; or (3) Refers to any testimonial, unless the advertisement or sales literature providing the testimonial prominently discloses: (i) That the testimonial may not be representative of the experience of other clients; (ii) That the testimonial is no guarantee of future performance or success; and (iii) If, more than a nominal sum is paid, the fact that it is a paid testimonial. (b)(1) No person may present the performance of any simulated or hypothetical commodity interest account, transaction in a commodity interest or series of transactions in a commodity interest of a commodity pool operator, commodity trading advisor, or any principal thereof, unless such performance is accompanied by one of the following: (i) The following statement: “These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.” ; or (ii) A statement prescribed pursuant to rules promulgated by a registered futures association pursuant to section 17(j) of the Act. (2) If the presentation of such simulated or hypothetical performance is other … |
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subchapter TEXT,
part_number TEXT,
part_name TEXT,
subpart TEXT,
subpart_name TEXT,
section_number TEXT,
section_heading TEXT,
agency TEXT,
authority TEXT,
source_citation TEXT,
amendment_citations TEXT,
full_text TEXT
);
CREATE INDEX idx_cfr_title ON cfr_sections(title_number);
CREATE INDEX idx_cfr_part ON cfr_sections(part_number);
CREATE INDEX idx_cfr_agency ON cfr_sections(agency);