CFTC Registration Status Clause Samples
The CFTC Registration Status clause defines the requirement for a party to disclose its registration status with the U.S. Commodity Futures Trading Commission (CFTC). This clause typically obligates a party to confirm whether it is registered, exempt, or not required to register with the CFTC, often in the context of derivatives or commodities transactions. By clarifying each party's regulatory standing, the clause helps ensure compliance with applicable laws and provides transparency, thereby reducing regulatory risk and potential misunderstandings between contracting parties.
CFTC Registration Status. The Authorized Participant either is not required to be registered with the Commodity Futures Trading Commission (“CFTC”) or to be a member of the National Futures Association (“NFA”), or, if required to be so registered, is duly registered with the CFTC and is a member in good standing of the NFA. The Authorized Participant agrees to supply the Managing Owner with such information as the Managing Owner may reasonably request in order to verify the foregoing representation. Vehicles for collective investment which acquire Shares may, as a result, themselves become “commodity pools” within the intent of applicable CFTC and NFA rules, and their sponsors, accordingly, will be required to register as “commodity pool operators.”