NFA sends request for financials to Commodity Hedge Funds

Hedge fund managers which are licensed as commodity pool operators (CPOs) should have received an email from the NFA which requests certain financial information. While not disclosed on their website, the NFA sent a request on Friday to all of the CPO Members. Each member will need to make a filing which represents (i) the commodity pool has not suffered a drawdown of 25% or more since December 31, 2007 or (ii) the commodity pool’s actual drawdown numbers. CPOs will have until October 8 to make the filing. If you are a CPO and have not received this email request, you should contact the NFA immediately. If you did receive the request and have any questions, you should contact the NFA and/or your attorney immediately.

The NFA contact persons are:

Mary McHenry, Senior Manager, Compliance, ([email protected], or (312) 781-1420)

Tracey Hunt, Senior Manager, Compliance, ([email protected] or (312) 781-1284)

The request for information does not apply to pools which are exempt under CFTC Rule 4.13. For the whole email, please see below.

September 26, 2008

Important Request for CPOs

Due to current events in the global financial markets, NFA is requesting CPO Members to provide information by October 8, 2008 regarding the financial status of their pools. However, this request does not apply to any CFTC 4.13 exempt pools.

To see a list of the active pools NFA has on file for your firm, click on the following link and access the EasyFile system: (However, if you currently operate a pool that may be subject to this request, but it is not included in the EasyFile listing, you must notify one of the individuals listed at the end of this message.)

NFA is requesting certain financial information as of 9/30/2008 for each pool listed that has experienced a drawdown of 25% or more since December 31, 2007. For further instructions on completing the filing, see the information below regarding How to File.

For any pool that did not sustain such a drawdown, you must attest to this fact by deleting the filing request from the listing. For further instructions on deleting the request, see the information below under How to Delete a Request.

How to File: For each pool that has experienced a drawdown of 25% or more since December 31, 2007, you must use the EasyFile system to submit the pool’s key financial balances and Schedule of Investments, as well as a written representation on disclosure and withdrawal restrictions.

The key financial balances consist of the same summary categories you enter for year-end statements. The Schedule of Investments is an itemized listing of all investments that individually exceed 5% of NAV. NFA has created a standardized spreadsheet for this filing, which is available at Use this link to access the spreadsheet and then perform a “save as” to save the blank spreadsheet to your local computer. Once you complete the spreadsheet, upload it to NFA via the EasyFile system. Additionally, you must submit any written documentation your firm has provided to participants relating to any additional disclosure, including whether the firm has placed any restrictions on redemptions and, if so, a description of these restrictions. You should save this written documentation as a PDF file and then upload it to the EasyFile system as well.

How to Delete a Request: For any pool that does not meet the 25% threshold, you must delete the filing request in the EasyFile system. Detailed instructions on how to delete a filing request are included in the guide entitled “Help for Special 9/30/2008 Filing” on the initial Pool Index screen in the EasyFile system.
BY DELETING THE REQUEST, YOU ARE ATTESTING THAT THIS POOL DID NOT EXPERIENCE A DRAWDOWN OF 25% OR MORE SINCE DECEMBER 31, 2007. In addition, NFA will maintain a record of the deletion, as well as the user who performed it.

Thank you in advance for your cooperation. If you have any questions regarding this request, please contact one of the following individuals:

Mary McHenry, Senior Manager, Compliance, ([email protected], or (312) 781-1420) Tracey Hunt, Senior Manager, Compliance, ([email protected] or (312) 781-1284)


Please contact us if you have any questions or would like to start a hedge fund.  Other related hedge fund law articles include:

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