The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") granted no-action relief from registration to a commodity pool operator (the "Delegating CPO") in response to a request by the CPO to delegate responsibilities for operating a pool to another CPO (the "Designated CPO"). The DSIO recently granted the same relief to another CPO with a substantively similar delegation arrangement.

The Delegating CPO intends to allow the Designated CPO to serve as the registered CPO for several commodity pools. In accordance with CFTC No-Action Letter 14-126, to qualify for registration relief in such a scenario, the two CPOs would need to meet several criteria.

While the CPOs do not meet the criterion that they are under common control with each other, the DSIO agreed to grant relief that is based on several factors, including that the CPOs are "jointly and severally liable" for violations of CEA and CFTC rules.

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