CFTC Issues CPO No-Action Relief for Credit Risk Transfer Transactions

The Commodity Futures Trading Commission (CFTC) Market Participants Division has issued a staff no-action letter regarding commodity pool operator (CPO) regulatory requirements. The staff relief was issued to the Structured Finance Association in the context of qualifying credit risk transfer (CRT) transactions engaged in by its member financial institutions. The action provides guidance on specific CPO requirements applicable to participating financial institutions involved in qualifying CRT market operations.