CFTC Part 4 Exemption Easy Reference Guide

Exemption Type 4.5 4.7 4.12(b) 4.12(c) 4.13(a)(1) 4.13(a)(2) 4.13(a)(3) 4.13(a)(5) CFTC Advisory 18-96 4.14
Registered CPO with QEPs - Director of Trustee of Commodity
Entities otherwise regulated "The Lite Touch" Securities Pool Commodity ETF Closely Held Pool Small Pool Deminimus Rule ETF Foreign Pool CTA Exemption

CPO Reg'd No Yes Yes Yes No No No No Yes N/A

Registered CPO is provided

relief from Disclosure
Document delivery, financial
General Relief Registered CPO is provided Registered CPO is provided statement distribution, and
Exemption provides relief from CPO relief from certain financial relief from specific holding of books and records Exemption provides relief Exemption provides relief from
registration on behalf of a qualifying reporting and disclosure requirements if less than at main business address from CPO registration in CPO registration for a person Registered CPO is provided relief
entity, if entity is already regulated by document requirements for 10% of the pool's assets requirements if the pool is a Exemption provides an entity Exemption provides an entity cases where the pool trades acting as an independent director from reporting and disclosure Exemption provides relief from CTA
another regulatory authority. pools with all QEPs invested in futures. Commodity ETF relief from CPO registration relief from CPO registration minimal amount of futures or trustee of a Commodity ETF requirements for foreign pools. registration

An investment company registered as

such under the Investment Company
Act of 1940; an insurance company
subject to regulation by any state; a
Who Qualifies bank, trust company or any other
such financial depository institution Persons acting as an
subject to US regulation; or a trustee independent director or trustee
of a named fiduciary or an employer with respect to a commodity pool
maintaining a pension plan that is An entity acting as a Pool An entity acting as a Pool An entity acting as a Pool eligible to claim relieft under
subject to ERISA. CPO or CTA CPO CPO Operator Operator Operator section 4.12(c) U.S. CPO An entity acting as a Trading Advisor

Persons who act in such capacity

Pool offered pursuant to Person operates only one solely to comply with the
Securities Act of 1933 or pool at any time; requirements of section 10A of
If the person claiming the exclusion is related exemption; Pool offered pursuant to Operator does not advertise Participation restricted to the Securities Exchange Act of
an Investment Company, the notice of Pool routinely engages in Securities Act of 1933; Pool in connection with the pool; Total gross capital accredited investors, a trust 1934 (and any rules and
eligibility must also contain securities business; listed for trading on a Operator does not receive contributions in all pools formed by an accredited exchange listing requirements CTA whose trading advice is only
representations that such person will All pool participants in the Futures trading is incidental national securities exchange any type of compensation; operated or intended to be investor for the benefit of a adopted thereto) that the pool incidental to the conduct of its cash
operate the qualifying entity as pool must meet definition in to securities trading activities; registered under the and Operator is not operated do not in the fam ly member, have an audit committee market, trade association or farm
descr bed in Rule 4.5(b)(1) for bona CFTC Regulation 4.7 of Futures trading limited to Securities Exchange Act of otherwise required to be aggregate exceed $400,000; knowledgeable employees, comprised exclusively of Pool is organized off-shore and has organization business; or registered
fide hedging purposes. "qualified eligible person" 10% of pool's assets 1934 registered with the CFTC and or QEP; and independent director or trustees. only non-U.S. participants AP or IB incidental to IB business

Disclosure Document must

be readily accessible on an
Internet Website, the address
Derivatives trading can not exceed of which must be provided to The person has no power or
five percent of the liquidation value of clients by the pool operator, None of the pools operated Pool meets one of two tests authority to manage or control the CTAs who only provide advice to
the entity's portfolio. broker, dealer, or selling has more than 15 with respect to its commodity operations or activities of the pool pools operating under a 4.13(a)(3)
agent. participants interest positions except as required by the Act exemption
Requirements

Persons excluded from 15 Two Tests:

An alternative net notional test to participants: 1. The aggregate initial
determine eligibility for exclusion from Account statements must be The pool's operator, CTA, margin and premiums does
the definition of a CPO. This test is readily accessible on an principals and any of their not exceed 5% of the
similar to the test currently in Internet Website maintained children, siblings or parents. liquidation value of the pool's
4.13(a)(3) and permits entities to by the CPO within 30 The spouse of any of these portfolio
claim relief if the aggregate net calendar days after the last persons. Any relative of pool 2. The aggregate net
notional values of the entity's day of applicable reporting operator, CTA and principals notional value of positions The CPO will be liable for
commodity interest positions do not period. The Disclosure including a relative of a does not exceed 100% of the violations of the Act or the
exceed 100 percent of the liquidation Document must indicate the spouse who has the same liquidation value of the pool's Commission's regulations by the
of the pool's portfolio. address of this website. principal residence. portfolio (17 CFR part 45) person seeking exemption CPO who only advises its own pools

Any books and records not If an individual intends to

kept by the pool operator at withdraw from registration to
Will not be, and has not been, its main business address claim this exemption, notice must
marketing participations to the public will be held by the pool's be sent to participants stating the
as or in a commodity pool or administrator, distributor, intent to withdraw to claim this Registered IA advising 4.5 exempt
otherwise as or in a vehicle for trading custodian, or a bank or exemption and providing a right pools, incidental to its securities
in the commodity futures, commodity registered broker or dealer to redeem interest in the pool advice and who does not otherwise
options, or swap markets. acting in a similar capacity. prior to claiming this exemption. hold itself out as a CTA
 Exemption Type 4.5 4.7 4.12(b) 4.12(c) 4.13(a)(1) 4.13(a)(2) 4.13(a)(3) 4.13(a)(5) CFTC Advisory 18-96 4.14
Exemption is processed Exemption is processed Exemption is processed Exemption is processed Exemption is processed Exemption is processed
Exemption is processed through through NFA's Exemption through NFA's Exemption through NFA's Exemption through NFA's Exemption through NFA's Exemption through NFA's Exemption Exemption is processed through Hard copy of the Exemption Notice Exemption is processed through
NFA's Exemption System. System. System. System. System. System. System. NFA's Exemption System. must be sent to NFA. NFA's Exemption System.

Provide the following: Name,

business address, business
telephone number, and NFA ID # of
CPO claiming exemption. The name
How to File of the pool(s) for which the exemption
is being claimed. If Section B is
claimed (books and records held
Provide the following: Name, Provide the following: Name, Provide the following: Name, offshore), the notice must provide the
main business address, main main business address, main main business address, main Provide the following: Name, name, title, full mailing address,
business telephone, main business telephone, main business telephone, main main business address, main telephone number and relationship to
Provide the following: Name of FAX number and main email FAX number and main email FAX number and main email business telephone, main FAX the pool of the person who will have Provide the following: Name, main
person filing notice, name of the address of person claiming address of person claiming address of person claiming number and main email address custody of the pool's books and business address, main business
qualifying entity (Fund) that the CPO CPO must select the Pools CPO must select the Pools CPO must select the Pools exemption. The name of the exemption. The name of the exemption. The name of the of person claiming exemption. records and the location outside the telephone, main FAX number and
intends to operate pursuant to for which the exemption will for which the exemption will for which the exemption will pool for which the exemption pool for which the exemption pool for which the exemption The name of the pool for which U.S. where those books and records main email address of trading advisor
exclusion. be filed. be filed. be filed. is being claimed. is being claimed. is being claimed. the exemption is being claimed. will be kept. claiming exemption

Each person who has filed a Each person who has filed a Each person who has filed a
notice of exemption from notice of exemption from notice of exemption from
registration under this section registration under this section registration under this section Each person who has filed a
Each person who has filed a notice of must affirm on an annual must affirm on an annual must affirm on an annual notice of exemption from Each person who has filed a notice of
exemption from registration under this basis the notice of exemption basis the notice of exemption basis the notice of exemption registration under this section exemption from registration under this
section must affirm on an annual from registration, withdraw from registration, withdraw from registration, withdraw must affirm on an annual basis section must affirm on an annual
basis the notice of exemption from such exemption due to the such exemption due to the such exemption due to the the notice of exemption from basis the notice of exemption from
registration, withdraw such exemption cessation of activities cessation of activities cessation of activities registration, withdraw such registration, withdraw such exemption
Annual Requirements due to the cessation of activities requiring registration or requiring registration or requiring registration or exemption due to the cessation of due to the cessation of activities
requiring registration or exemption exemption therefrom, or exemption therefrom, or exemption therefrom, or activities requiring registration or requiring registration or exemption
therefrom, or withdraw such withdraw such exemption withdraw such exemption withdraw such exemption exemption therefrom, or withdraw therefrom, or withdraw such
exemption and apply for registration and apply for registration and apply for registration and apply for registration such exemption and apply for exemption and apply for registration
within 60 days of the calendar year within 60 days of the within 60 days of the within 60 days of the registration within 60 days of the within 60 days of the calendar year
end through NFA's exemption calendar year end through calendar year end through calendar year end through calendar year end through NFA's end through NFA's exemption
system. No Annual Notice required No Annual Notice required No Annual Notice required NFA's exemption system. NFA's exemption system. NFA's exemption system. exemption system. No Annual Notice required system.

Effective date of rule Effective date of rule Effective date of rule

Effective date of rule changes is changes is 4/24/2012 and changes is 4/24/2012 and changes is 4/24/2012 and Effective date of rule changes is Effective date of rule changes is
4/24/2012 and will become will become implemented on will become implemented on will become implemented on 4/24/2012 and will become 4/24/2012 and will become
implemented on 12/31/12. 12/31/12. 12/31/12. 12/31/12. implemented on 12/31/12. implemented on 12/31/12.