Briefings
CFTC Roundtable Report
- By: admin
- On: 03/19/2014 14:15:23
- In: 2014 Briefings
We wanted to let you know that today, March 18, 2014, the Commodity Futures Trading Commission (“CFTC” or “Commission”) held a public roundtable to discuss risk management practices of commodity pool operators (“CPOs”). The roundtable discussion broadly focused on the following topics: (1) the impact of the Volcker Rule; (2) risk management for direct investment funds (“DIFs”); (3) risk management for funds of funds (“FOFs”); and (4) industry best practices.
We wanted to let you know that today, March 18, 2014, the Commodity Futures Trading Commission (“CFTC” or “Commission”) held a public roundtable to discuss risk management practices of commodity pool operators (“CPOs”). The roundtable discussion broadly focused on the following topics: (1) the impact of the Volcker Rule; (2) risk management for direct investment funds (“DIFs”); (3) risk management for funds of funds (“FOFs”); and (4) industry best practices.
Much of the discussion during the roundtable focused on need for flexibility in tailoring risk management practices to a particular CPO's investment portfolio based on size, client expectations, and expected risk position. In this context, the participants noted that the industry has significant internal and external pressure to manage risk to protect reputation and fulfill fiduciary duties to clients. The participants likewise agreed that, though certain general guidelines from regulators may be appropriate, detailed regulation of risk management programs would be inefficient and counterproductive