Commodity Futures Trading Commission Agency: Action: Summary

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COMMODITY FUTURES TRADING COMMISSION17 CFRPart 4Harmonization of Compliance Obligations for Registered Investment CompaniesRequired to Register as Commodity Pool OperatorsAGENCY:Commodity Futures Trading Commission.ACTION:Proposed Rules.SUMMARY: The Commodity Futures Trading Commission is proposing amendmentsto its regulations regarding requirements applicable to investment companies registeredunder the Investment Company Act of 1940 ("registered investment companies") whoseadvisors will be subject to registration as commodity pool operators due to changes tosection 4.5 that the Commission is adopting.DATES: Comments should be received on or before [estimate date 60 days afterpublication in Federal Register], 2012.ADDRESSES: Comments may be submitted by any of the following methods:IIIAgency Website, via its Comments Online Process: Comments may be submittedto http://comments.cftc.govIPublicCommentslReleases WithComments.aspx.Follow the instructions for submitting comments on the website.IIIMail: David A. Stawick, Secretary, Commodity Futures Trading Commission,Three Lafayette Centre, 115521 st Street, NW, Washington, DC 20581.CDHand Delivery/Courier: Same as mail above.IIIFederal eRulemaking Portal: http://w}vw.regulations.gov. Follow the instructionsfor submitting comments.1

It"Regulation 4.5 Harmonization" must be in the subject field of commentssubmitted electronically, and clearly indicated on written submissions. Allcomments must be submitted in English, or if not, accompanied by an Englishtranslation. Comments will be posted as received to www.cftc.gov. You shouldsubmit only information that you wish to make available publicly. If you wish theCFTC to consider information that may be exempt from disclosure under theFreedom of Information Act, a petition for confidential treatment of the exemptinformation may be submitted according to the established procedures in CFTCRegulation 145.9. 1ItThe CFTC reserves the right, but shall have no obligation, to: review, prescreen,filter, redact, refuse, or remove any or all of your submission fromhttp://www.cftc.gov that it may deem to be inappropriate for publication, such asobscene language. All submissions that have been redacted or removed whichcontain comments on the merits of the rulemaking will be retained in the publiccomment file and will be considered as required under the AdministrativeProcedure Act and other applicable laws, and may be accessible under theFreedom of Information Act.FOR FURTHER INFORMATION CONTACT: Kevin P. Walek, Assistant Director,Telephone: (202) 418-5463, E-mail: kwalek@cftc.gov, Amanda Lesher Olear, SpecialCounsel, Telephone: (202) 418-5283, E-mail: aolear@cftc.gov, or Michael Ehrstein,Attorney-Advisor, Telephone: 202-418-5957, E-mail: mehrstein@cftc.gov, Division ofSwap Dealer and Intermediary Oversight, Commodity Futures Trading Commission,Three Lafayette Centre, 1155 21st Street, N.W., Washington, DC 20581.117 CFR 145.9.2

SUPPLEMENTARY INFORMATION:I. BackgroundA. Statutory and regulatory backgroundThe Commodity Exchange Act ("CEA"i provides the Commission with the authorityto register Commodity Pool Operators ("CPOs") and Commodity Trading Advisors("CTAs")/ to exclude any entity from registration as a CPO or CTA, 4 and to require"[e]very commodity trading advisor and commodity pool operator registered under [theCEA] to maintain books and records and file such reports in such form and manner asmay be prescribed by the Commission."s The Commission also has the power to "makeand promulgate such rules and regulations as, in the judgment of the Commission, arereasonably necessary to effectuate the provisions or to accomplish any of the purposes of[the CEA].,,6The Commission's discretionary power to exclude or exempt personsfrom registration was intended to be exercised "to exempt from registration those personswho otherwise meet the criteria for registration . if, in the opinion of the Commission,there is no substantial public interest to be served by the registration.,,7 It is pursuant tothis authority that the Commission has promulgated the exclusions from the definition ofCPO that are delineated in § 4.5.8B. Reinstatement of trading and marketing criteria in § 4.5.27 U.S.C. 1, et seq.7 U.S.C. 6m.47 U.S.C. Ia(II) and Ia(I2).57 U.S.C. 6n(3)(A). Under part 4 of the Commission's regulations, entities registered as CPOs havereporting obligations with respect to their operated pools. See 17 CFR 4.22.6 7 U.S.C. 12a(5).7 See H.R. Rep. No. 93-975, 93d Cong., 2d Sess. (1974), p. 20.817 CFR4.5. See 68 FR47231 (Aug. 8,2003).33

In Febmary 2011, the Commission proposed to revise the requirements fordetermining which persons should be required to register as a CPO under § 4.5. 9 TheCommission is adopting the proposed changes to § 4.5, with some minor modifications,and is proposing certain provisions to facilitate compliance by registered investmentcompanies with the Commission's disclosure, reporting, and recordkeeping requirements.The proposed amendments that follow are based on the consideration of the commentsthat were submitted on the previously proposed amendments to § 4.5, informationprovided during a staff roundtable on July 16,2011 ("Roundtable"),l0 and meetings with.d' 11mterestepartIes.C. Proposed harmonization provisionsMany commenters noted that sponsors of registered investment companies whichalso would be required to register as CPOs would be subject to duplicative, inconsistent,and possibly conflicting disclosure and reporting requirements. In comment letters,meetings, and at the Roundtable, a number of suggestions were made regarding themanner in which the Securities and Exchange Commission ("SEC") and CFTCrequirements could be harmonized. Specific areas identified by the commenters asneeding harmonization include: the timing of delivery of Disclosure Documents toprospective participants; the signed acknowledgement requirement for receipt ofDisclosure Documents; the cycle for updating Disclosure Documents; the timing offinancial reporting to participants; the requirement that a CPO maintain its books andrecords on site; the required disclosure of fees; the required disclosure of past76 FR 7976 (Feb. 12,2011).See Notice of CFTC Staff Roundtable Discussion on Proposed Changes to Registration and ComplianceRegime for Commodity Pool Operators and Commodity Trading Advisors, available athttp://www.cftc.gov/PressRoom/Events/opaevent cftcstaff070611.11 See generally. t.aspx?id 973.9104

performance; the inclusion of mandatory certification language; and the SEC-permitteduse of a summary prospectus of open-ended registered investment companies.Several commenters suggested that the Commission make available relief, withrespect to document and report distribution, similar to that which it has recently adoptedwith respect to exchange-traded funds ("ETFs,,).12 Other commenters suggested thatwhere requirements are inconsistent, the Commission should defer to SEC requirements.A few commenters made recommendations about the treatment of specific disclosures,such as presenting both SEC and CFTC-required fee information and presenting certainperformance information required by the CFTC in the Statement of AdditionalInformation ("SAl"). At least one commenter noted that registered investmentcompanies should be required to comply with all disclosure and other requirementsapplicable to registered CPOs.The Commission has carefully considered the comments regarding harmonizationand has determined to propose the following exemptive provisions that would beavailable to advisors of registered investment companies who are required to register asCPOs.1. Delivery of disclosure documents and periodic reportsPart 4 of the Commission's regulations impose certain risk disclosure, reporting,and recordkeeping obligations on registered CPOs. Section 4.21 13 of the Commission'sregulations requires that each CPO registered or required to be registered with theCommission deliver a Disclosure Document prepared in accordance with §§ 4.24 and121376 FR28641 (May 18,2011).17 CFR 4.21.5

4.25,14 which set forth the specific information required to be disclosed, including thepast performance ofthe offered pool to each prospective patiicipant in a pool that itoperates or intends to operate. Section 4.21 further provides that the CPO may not acceptor receive funds, securities, or other property from a prospective participant unless theCPO first receives from the prospective participant a signed and dated acknowledgmentstating that the prospective patiicipant received a Disclosure Document for the pool.With respect to a CPO's reporting obligations, § 4.2215requires that each CPOregistered or required to be registered periodically distribute to each participant in eachpool that it operates an Account Statement presented in the form of a Statement ofIncome (Loss) and a Statement of Changes in Net Asset Value for the prescribed period.The Account Statement must be distributed monthly for pools with net assets of morethan 500,000, and otherwise at least quarterly. 16 The financial statements must bepresented in accordance with generally accepted accounting principles, consistentlyapplied. 17 With respect to a CPO's recordkeeping obligations, § 4.2318of theCommission's regulations requires, in relevant part, that each CPO who is registered orrequired to be registered must make and keep the books and records specified in theregulation "at its main business office."2. Comments received regarding recently adopted exemptive relief for exchange tradedfunds.In response to the Commission's proposal to amend § 4.5, several commenterssuggested that the Commission consider extending the exemptive relief that it recently17 CFR 4.24 and 4.25.17 CFR 4.22.16 17 CFR 4.22(b).1717 CFR4.22(a).18 17 CFR 4.23.14156

adopted for CPO's operating ETFs under § 4.12( c), 19 which makes available to suchCPOs specified relief from the Disclosure Document delivery and acknowledgmentrequirements of § 4.21, the monthly Account Statement delivery requirement of § 4.22,and the requirement to keep the CPO's books and records at its main business address in§ 4.23. The relief permits CPOs to comply with the Disclosure Document and accountstatement delivery requirements by making such documents available on their web sites,and to maintain their records with specified third parties, on the condition that certaininformation and representations are filed with the CPO's notice claiming relief.2oThecriteria for claiming this relief are that: 1) the units of participation in the pool will beoffered and sold pursuant to an effective registration statement under the Securities Actof 1933,21 and 2) the units will be listed for trading on a national securities exchangeregistered as such under the Securities Exchange Act of 1934. 22 In its release proposingETF relief, the Commission noted that historically, ETFs have been investmentcompanies registered under the Investment Company Act of 1940 either as unitinvestment trusts or as open-end investment companies?3 The Commission did not,however, make such registration a condition of relief. Commenters noted that, like ETFs,the distribution and subscription mechanisms for registered investment companies wouldmake it difficult for them to meet the Disclosure Document delivery andacknowledgment requirements under the Commission's regulations. Commenters andRoundtable panelists also noted that the records of registered investment companies oftenare maintained by third parties, such as administrators, making it difficult for registered1917 CFR4.12(c).Id.21 15 U.S.C. 77a, et seq.22 15 U.S.C. 78a, et seq.23 75 FR 54794,54795 (Sept. 9, 2010).207

investment companies to comply with the requirement of § 4.23 that a pool's books and,records be maintained at the CPO's main business office.24To address these concerns,the Commission is proposing to add an alternative criterion under § 4.l2(c) that willpermit registered investment companies to claim the disclosure, reporting, andrecordkeeping relief currently available to ETFs.Several commenters further requested that the Commission extend the same reliefit made available to operators of ETFs for delivery of required disclosures and periodicreports to CPOs of publicly offered commodity pools, noting that such offerings areregulated by the CFTC, SEC, National Futures Association ("NFA"), Financial IndustryRegulatory Authority ("FINRA"), and each state in which they are offered. TheCommission agrees that for purposes of the exemption, there is no useful distinctionbetween publicly offered pools whose units are listed for trading on a national securitiesexchange, and those which are not. Therefore, the Commission is proposing to amend §4.l2(c) such that the CPO of any pool whose units of participation will be offered andsold pursuant to an effective registration statement under the Securities Act of 1933 mayclaim the relief from the delivery and acknowledgement requirements under § 4.21,certain periodic financial reporting obligations under § 4.22, and the requirement thatrecords be maintained at the CPO's main office under § 4.23, available under § 4.l2(c)with respect to that pool.3. Content and timing of disclosure documentsMany of the disclosures required by part 4 of the Commission's regulations areconsistent with SEC-required disclosures. Where CFTC requirements differ slightly, theCommission believes that CFTC-required disclosures can be presented concomitant with2417 CFR 4.23.8

SEC-required information in a registered investment company's prospectus. To addressthe few instances where conflicts in disclosure have been identified, the Commission isproposing relief to harmonize these requirements. With respect to performance, § 4.25(b)specifies that if the pool has traded commodity interests for three years or more, duringwhich at least seventy-five percent of its contributions have been made by personsunaffiliated with the CPO, CTAs, or their principals, the only required performance isthat of the offered poo1.25 If a pool has not operated for at least three years, the CPOmust present the performance of other pools and accounts enumerated in §§ 4.25(c)(2) (5).26 The Commission is proposing that the performance of other pools and accountsrequired to be disclosed by §§ 4.25(c)(2) - (5) may be presented in the registeredinvestment company's SAL The Commission notes that SEC requirements may conflictwith CFTC requirements with respect to reporting past performance and accordinglyseeks comment below?7 In addition, the Commission is proposing that, in lieu of thestandard cautionary statement prescribed by § 4.24(a),28 the cover page of the registeredinvestment company's prospectus may contain a statement that combines the languagerequired by both § 4.24(a) and Rule 481(b)(1) under the Securities Act of 1933?9 Withrespect to the break-even point30 required by § 4.24(d)(5)/1 the Commission will2517 CFR4.25(b).17 CFR 4.25( c)(2) - (5).27 The Commission has had preliminary discussions with SEC staff on this issue. The SEC staff stated thatit would consider requests for no-action relief regarding the performance presentations, if necessary andappropriate.28 Section 4.24(a) of the Commission's regulations requires that each disclosure document prepared anddistributed by registered CPOs prominently display the following prescribed cautionary statement on itscover:THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITSOF PARTICIPATING IN THlS POOL NOR HAS THE COMMISSION PASSED ON THE ADEQUACYOR ACCURACY OF THlS DISCLOSURE DOCUMENT. 17 CFR 4.24(a).29 17 CFR 230.481.30 Section 4.1 Ou) of the Commission's regulations defines the "break-even point" as "the trading profit thata pool must realize in the first year of a participant's investment to equal all fees and expenses such that269

consider the forepart of the document to be the section immediately following alldisclosures required by SEC Form N IA32 to be included in the summary prospectus, orotherwise, for registered investment companies using Form N-2, in the forepart of theprospectus. Any other information required to be presented in the forepart of thedocument by § 4.24(d), but that is not included in the summary section of the prospectusfor open-ended registered investment companies, may also be presented immediatelyfollowing the summary section of the prospectus for open-ended funds, or otherwise, forregistered investment companies using Form N-2, in the forepart ofthe prospectus.Finally, with respect to disclosure of fees and expenses required by § 4.24(i), any suchexpenses that are not included in the fee table required by Item 3 of Form N-IA or Item 3of Form N-2 would be disclosed in the prospectus, along with the tabular presentation ofthe calculation of the pool's break-even point required by § 4.24(i)(6). The Commissioncontinues to believe that the inclusion of the tabular presentation of the calculation of thebreak-even point consistent with the Commission's regulations is a necessary disclosurebecause, among other requirements, it mandates a greater level of detail regardingbrokerage fees and does not assume a specific rate of return. The Commission believesthat this results in meaningful disclosure through the break-even analysis and facilitatesan investor's assessment of a registered investment company that uses derivatives.Commenters noted that the CFTC' s and SEC's timing requirements forDisclosure Document updates were inconsistent. Section 4.26 of the Commission'ssuch participant will recoup its initial investment, as calculated pursuant to rules promulgated by aregistered futures association pursuant to section 170) of the Act." 17 CFR 4.100)(1). The break-evenpoint must be expressed in terms of dollars and as a percentage of the minimum unit of initial investment.17 CFR 4.100)(2). It must also assume the redemption of the investment as ofthe close of the first year ofinvestment. rd.3117 CFR4.24(d)(5).3217 CFR274.11a.10

regulations specifies that a Disclosure Document may be used for nine months from thedate of the document before a new Disclosure Document must be prepared and filed.Conversely, provisions of the securities laws effectively require an annual prospectusupdate. Section 10(a)(3) of the Securities Act of 1933 specifies that "when a prospectusis used more than nine months after the effective date of the registration statement, theinformation contained therein shall be as of a date not more than sixteen months prior tosuch use . .',33 Because financial statements are prepared annually as of the end of theinvestment company's fiscal year, and information from the financial statements isincluded in the prospectus, the operation of Section 10(a)(3) results in an annualprospectus updating cycle. To address this inconsistency, the Commission is proposingto require that CPOs and CTAs file updates of all Disclosure Documents twelve monthsfrom the date of the document.Some commenters, including NF A, raised an operational issue in connection withDisclosure Document amendments filed pursuant to § 4.26(c).34 NFA noted that CPOsfiling amended Disclosure Documents cannot distribute the document until NF A acceptsthe disclosure document. NF A suggested that the Commission consider whether it maybe appropriate to allow CPOs of pools that provide for daily liquidity to post theDisclosure Document with the highlighted changes on their internet web sites for poolparticipants at the same time the CPO files with NF A, with the final document postedupon completion of the NF A review process. The Commission notes that § 4.26(d)(2)currently permits CPOs to provide Disclosure Document updates to participants at thesame time such updates are filed with NFA. Therefore, if the proposed relief is adopted333415 U.S.C. 77j.17 CFR 4.26.11

by the Commission, CPOs claiming such relief may follow the procedure recommendedby NF A with no additional action by the Commission.4. Reports - timing and certificationSection 4.22(a) requires CPOs to provide periodic reports, generally monthly, toparticipants in the pools that they operate. SEC regulations require that registeredinvestment companies provide semiannual reports to shareholders. Regulations of bothcommissions require provision of annual financial statements to commodity poolparticipants and investment company shareholders, respectively.35 Some commentersnoted that the requirement to prepare and provide monthly account statements would beburdensome because registered investment companies are not required to do so underSEC regulations, and suggested that the Commission accept the reporting required undersecurities laws. The Commission has carefully considered these comments anddetermined not to propose relief regarding the content or timing of the monthly accountstatement, as the information required to prepare the account statement should be readilyavailable to the operator of an investment vehicle maintaining records of its tradingactivity and other operations in accordance with recordkeeping requirements under theCEA and applicable securities laws. Registered investment companies will be able tosatisfy the requirement to deliver account statements to participants by making suchstatements available on their internet web sites, thereby substantially reducing any burdenunder § 4.22(a).One commenter noted that the language required by the CFTC and the SEC intheir respective periodic and annual report certifications is not identical, and encouragedthe Commission to work with the SEC either to accept one language in lieu of the other3517 CFR 4.22 and 270.30e-1.12

or to develop agreed upon language for these certifications. Section 4.22(h) requires theindividual making the oath or affirmation on behalf of the CPO to affirm that, to the bestof his or her knowledge and belief, the information contained in the document is accurateand complete. The first item in the certification required by SEC Form N-CSR is: "Basedon my knowledge, this report does not contain any untrue statement of a material fact oromit to state a material fact necessary to make the statements made, in light of thecircumstances under which such statements were made, not misleading with respect tothe period covered by this report." The certification under § 4.22(h) must be includedwith the periodic and annual reports provided to participants and with the annual reportfiled with NFA. The certification required by SEC Form N-CSR is made availablethrough EDGAR, but does not have to be provided to shareholders. Because the Form NCSR certification includes language that is substantively consistent with the certificationrequired under § 4.22(h), the Commission will accept the SEC's certification as meetingthe requirement under § 4.22(h), as long as such certification is part of the Form N-CSRfiled with the SEC.The Commission seeks comment on the proposed harmonization provisions. Inparticular, do any provisions of part 4 in addition to those identified in the proposal needto be harmonized? For instance, as noted in the Commission's final rulemaking,Commodity Pool Operators and Commodity Trading Advisors: Amendments toCompliance Obligations,36 the Commission is considering adopting a family officesexemption from CPO registration akin to the exemption adopted by the SEC. 37 What arethe factors that weigh in favor or against such an exemption? Do the proposed36 [INSERT FEDERAL REGISTER CITE FOR FINAL RULE, COMMODITY POOL OPERA TORSAND COMMODITY TRADING ADVISORS: AMENDMENTS TO COMPLIANCE OBLIGATIONS].37 See 17 CFR250.202(a)(1l)(G)-1.13

harmonization provisions for break-even analysis and performance disclosure strike theappropriate balance between achieving the Commission's objective of providing materialinformation to pool participants, and reducing duplicative or conflicting disclosure?Should the Commission consider hatmonizing its account statement reportingrequirement with the SEC's semiannual reporting requirement? Should the Commissionconsider harmonizing its past performance reporting requirements with the SECrequirements? Are there other approaches to harmonizing these requirements that theCommission should consider? Should the Commission consider applying any of theharmonization provisions to operators of pools that are not registered investmentcompanies?II. Related MattersA. Regulatory Flexibility ActThe Regulatory Flexibility Act (RF A)38 requires that agencies, in proposing rules,consider the impact of those rules on small businesses. The Commission has previouslyestablished certain definitions of "small entities" to be used by the Commission inevaluating the impact of its rules on such entities in accordance with the RFA. 39CPOs: The Commission has previously determined that registered CPOs are notsmall entities for the purpose of the RFA. 40 With respect to CPOs exempt fromregistration, the Commission has determined that a CPO is a small entity if it meets thecriteria for exemption from registration under current Rule 4. 13(a)(2).41 Based on therequisite level of sophistication needed to comply with the SEC's regulatory regime forSee 5 U.S.C. 601, et seq.47 FR 18618 (Apr. 30, 1982).40 See 47 FR 18618, 18619 (Apr. 30, 1982).41 See 47 FR at 18619-20.383914

registered investment companies and the fact that registered investment companies aregenerally intended to serve as retail investment vehicles and do not qualify for exemptionunder § 4. 13 (a)(2), the Commission believes that registered investment companies aregenerally not small entities for purposes of the RF A analysis. Moreover, the proposalsherein will reduce the burden of complying with part 4 for CPOs of registered investmentcompanies. The Commission has determined that the proposed regulation will not createa significant economic impact on a substantial number of small entities.CTAs: The Commission has previously decided to evaluate, within the context ofa particular rule proposal, whether all or some CTAs should be considered to be smallentities, and if so, to analyze the economic impact on them of any such rule. 42 The soleaspect of the proposal that affects CTAs would allow disclosure documents to be used for12 months rather than nine months, thereby reducing the frequency with which updatesmust be prepared. Therefore, the Commission has determined that the proposal will notcreate a significant economic impact on a substantial number of small entities.Accordingly, the Chairman, on behalf ofthe Commission hereby certifies pursuant to 5U.S.C. 605(b) that the proposed rules, will not have a significant impact on a substantialnumber of small entities.B. Paperwork Reduction ActThe Paperwork Reduction Act ("PRA") imposes certain requirements on Federalagencies in connection with their conducting or sponsoring any collection of informationas defined by the PRA. 43 An agency may not conduct or sponsor, and a person is not4243See 47 FR at 18620.See 44 U.S.C. 3501 et seq.15

required to respond to, a collection of information unless it displays a currently validcontrol number from the Office of Management and Budget ("OMB").The Commission is amending Collection 3038-0023 to allow for an increase inresponse hours for the rulemaking resulting from the amendments to § 4.5 that theCommission adopted in a concurrent release. 44 In the context of that rulemaking, theCommission received comments asserting that, absent harmonization of theCommission's compliance regime for CPOs with that of the SEC for registeredinvestment companies, entities operating registered investment companies that would berequired to register with the Commission would not be able to comply with theCommission's regulations and would have to discontinue their activities involvingcommodity interests. Because the Commission is proposing provisions to harmonize itscompliance regime for sponsors or advisors to registered investment companies requiredto register as CPOs, the Commission believes that such entities will be able to registerwith the Commission and comply with the applicable compliance obligations.The Commission also is amending Collection 3038-0005 to allow for an increasein response hours for the rulemaking associated with modified compliance obligationsunder part 4 of the Commission's regulations resulting from these revisions. The titlesfor these collections are "Part 3 - Registration" (OMB Control number 3038-0023) and"Part 4 - Commodity Pool Operators and Commodity Trading Advisors" (OMB Controlnumber 3038-0005). Responses to this collection of information will be mandatory.The Commission will protect proprietary information according to the Freedom ofInformation Act ("FOIA") and 17 CFR part 145, "Commission Records andInformation." In addition, section 8(a)(1) of the CEA strictly prohibits the Commission,44CITE to FR for Non-Joint Rulemaking.16

unless specifically authorized by the CEA, from making public "data and informationthat would separately disclose the business transactions or market position of any personand trade secrets or names of customers.,,45 The Commission is also required to protectcertain information contained in a government system of records according to the PrivacyAct of 1974. 46In the Commission's February proposal, the Commission estimated that theburden of § 4.5 compliance would be 16.68 hours for an estimated 416 CPOs and CTAsthat would be obligated to comply.47 There currently is no source of reliable informationregarding the general use of derivatives by registered investment companies. Because ofthis lack of information, the Commission has derived the estimated entities affected andthe number of burden hours associated with this proposal through the use of statisticalanalysis. According to the one source of data available to the Commission, in 2010, therewere 669 sponsors of9,719 registered investmen

The Commodity Exchange Act ("CEA"i provides the Commission with the authority to register Commodity Pool Operators ("CPOs") and Commodity Trading Advisors ("CTAs")/ to exclude any entity from registration as a CPO or CT A, 4 and to require "[e]very commodity trading advisor and commodity pool operator registered under [the

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