The NFA recently approved NFA Compliance Rule 2-46 which will introduce new quarterly reporting requirements for certain registered CPOs.  Back in May 2009 the NFA sought comments from CPOs on a proposal to modify the NFA’s web-based disclosure document system.  The proposal was aimed at requiring CPOs to report limited pool performance and operational data for all their listed pools to the NFA on a quarterly basis.  Our expectation is that the NFA will be requiring such quarterly reporting for any commodity pools for which the CPO has reporting requirements under CFTC Rule 4-22.  Taking this a step further, we are of the view the NFA Compliance Rule 2-46 will prompt quarterly reporting for pools operated pursuant to CFTC Rule 4.7, but it will NOT require information to be filed for pools which claim exemption pursuant to Rule 4.13 (e.g., 4.13(a)(3) or 4.13(a)(4)).The NFA is of the view that additional performance and operational data is necessary regarding commodity pools so that the NFA’s new risk system can provide optimal benefit to compliance staff.  Consistent with the NFA’s May 2009 proposal, it seems that CPOs will need to electronically file the following information on a quarterly basis (within 45 days of quarter-end):

• The identity of third parties with whom the pool has a relationship, including carrying broker(s), trading manager(s), administrator(s) and solicitor(s);
• Statement of changes in NAV for the quarter;
• Monthly performance for the 3 months that make up the given quarter; and
• A current schedule of investments identifying any investment that exceeds 10% of the pool’s net asset value at the end of the given quarter.

At this stage, the effective date for Compliance Rule 2-46 is listed as “to be determined” and the NFA has built in time to make what they are referring to as “necessary programming changes.”  As such, it does not appear that filings under this rule will be required for the quarter ended December 31, 2009; however, it is likely that Compliance Rule 2-46 filings will need to be made for the quarter ended March 31, 2010.