Commodity Pool Operator (CPO)

A CPO is an individual or organization which operates a commodity pool and solicits funds for that commodity pool. A commodity pool is an enterprise in which funds contributed by a number of persons are combined for the purpose of trading futures contracts, options on futures, retail off-exchange forex contracts or swaps, or to invest in another commodity pool.

In general, registration is required unless the CPO qualifies for one of the exemptions from registration outlined in CFTC Regulations 4.5 or 4.13. Examples of entities or individuals that may be exempt include the following:

• Those otherwise regulated, such as a bank, insurance company, or a registered Investment Company,
• Those who operate one or more small pool(s) that has received less than $400,000 in aggregate capital contributions and that have no more than 15 participants in any one pool, or
• Those who operate pools that do not commit more than 10 percent of the fair market value of their assets to establish commodity interest trading positions and they trade commodity interests in a manner solely incidental to their securities trading activities.

All registered CPOs must be Members of NFA in order to conduct futures business with the public.

A CPO is required to file the following:

• A completed online Form 7-R (includes NFA membership sections)
• A non-refundable application fee of $200.00
• CPO Membership Dues of $750.00            

A CPO is required to file applications for its Principals and Associated Persons

• A completed online Form 8-R
• Fingerprint Cards
• Proficiency Requirements
• A non refundable Principal Application Fee of $85.00*
• A non refundable Associated Person Application Fee of $85.00* 

Additionally, all registered CPOs engaged in retail off-exchange forex activities are required to:

• Apply to become a forex firm by completing online Form 7-R
• Have at least one principal that is also an approved Forex Associated Person
• Submit payment of CPO Forex Firm membership dues of $2,500 (or surcharge of $1,750 if applicant is already an
  NFA Member)

Additionally, all registered CPOs engaged in swap transactions are required to:

• Apply to become a swap firm by completing online Form 7-R
• Have at least one principal that is also an approved Swap Associated Person

*An application fee is not required if the individual is currently registered with the CFTC in any capacity or is listed as a principal of a current CFTC registrant.  In addition, only one application fee is required if the individual is filing an application as both an Associated Person and Principal.      

Click here if you do not already have access to the Online Registration System.