Adopt new data collection rules for CPOs and CTAs that are consistent with the data collection requirements under Dodd-Frank for entities registered with both the CFTC and the SEC.

Include new risk disclosure requirements for CPO and CTA swap transactions.

Trading futures contracts, options on futures or retail off-exchange forex contracts.

Investing in another commodity pool.

Section 4.13(a)(4). The "sophisticated investor" exemption from CPO registration provided in Commodity Exchange Act (CEA) Section 4.13(a)(4) is rescinded. Existing CPOs that currently rely on Rule 4.13(a)(4) for exemption from CPO registration which invest on behalf of certain private funds must register with the CFTC as CPOs and become members of the NFA or rely on a different exemption from registration, by December 31, 2012. For CPOs that do not currently rely on the Rule 4.13(a)(4) registration exemption, the rescission of Rule 4.13(a)(4) will be effective 60 days after the final rules are published in the Federal Register.

Section 4.5. Investment companies registered with the SEC can no longer rely on an exclusion from registration as CPOs under Section 4.5. However, exclusions from registration are still available to registered investment companies whose:

Trading in futures and swaps for bona fide hedging purposes will be exempt from these calculations.

The investment advisor of a CPO, not its board of directors, is required to register as the CPO under the rules. Registration for CPOs that had relied on the Section 4.5 exemption and for which there is no other available exemption from registration is required by the later of:

Entities required to register as CPOs due to these amendments to Section 4.5 will be subject to CFTC recordkeeping, reporting and disclosure requirements for CPOs under Part 4 of the CFTC's regulations as of 60 days following the effectiveness of a final rule implementing the CFTC's proposed harmonization effort for investment companies already registered with the SEC (see Proposed Compliance Harmonization Rules for CPO Investment Companies).

Sections 4.5, 4.13 and 4.14. All entities and individuals claiming exemptive or exclusionary relief from registration as a CPO under CEA Sections 4.5, 4.13 and 4.14 must:

Section 4.7. To promote consistency between Rule 4.7 and the SEC's definition of accredited investor under Regulation D of the Securities Act of 1933, the CFTC is modifying CEA Section 4.7 to incorporate the SEC's accredited investor standard by reference, rather than by direct inclusion of its terms, as is currently the case. This will permit the CFTC's definition of "qualified eligible person" to continue to include the specific terms of the SEC's accredited investor standard in the event that it is later modified by the SEC, without requiring the CFTC to further amend Section 4.7.

The exemption in Rule 4.7 remains available but is an exemption from certain CPO and CTA disclosure and compliance obligations required by the CFTC, not an exemption from CPO and CTA registration or from annual CPO and CTA reporting obligations. Revised Section 4.7 also no longer allows CPOs or CTAs to claim exemption from the requirement that an exempt CPO's or CTA's annual report contain certified financial statements.

Assets under management.

The use of leverage.

Counterparty credit risk exposure.

Trading and investment positions.

CPOs with at least $5 billion in assets under management: 60 days after the end of the CPO's first calendar quarter that ends after July 2, 2012.

All other large CPOs, defined as having assets of at least $1.5 billion: 60 days after the end of the CPO's first calendar quarter that ends after December 14, 2012.

All other CPOs and CTAs: 90 days after calendar year end 2012.