It is widely recognized that the Commodity Futures Trading Commission (CFTC) has made great strides previously in terms of harmonizing its rules with those of other regulators, including the Securities Exchange Commission (SEC). See “What Do the CFTC Harmonization Rules Mean for Non-Mutual Fund Commodity Pools, Including Hedge Funds?
,” Hedge Fund Law Report, Vol. 6, No. 40 (Oct. 17, 2013). In perhaps a sign that new leadership at the CFTC has settled in and intends to continue the trend toward harmonization, the CFTC has recently acted on a variety of items with respect to which the industry was waiting, in some cases for a year or more, for sorely needed guidance. While not all pressing issues have been resolved by the CFTC, a number of them have been. In a guest article, Steven M. Felsenthal, General Counsel and Chief Compliance Officer of Millburn Ridgefield Corporation, The Millburn Corporation and Millburn International, LLC, summarizes some of the recent CFTC actions and guidance, notes certain implications thereof that may or may not require further guidance and identifies certain items with respect to which further CFTC action would be welcome. The focus of this article is on certain issues affecting hedge fund advisers that are also commodity pool operators, who are thus subject to both SEC and CFTC regulatory regimes.