Legal Definition of Commodity Pool Operator

What is Legal Definition of Commodity Pool Operator?

Legal Definition of Commodity Pool Operator meaning 7 USC 1a(11) Commodity pool operator (A) In general The term commodity pool operator means any person – (i)engaged in a business that is of the nature of a commodity pool, investment trust, syndicate, or similar form of enterprise, and who, in connection therewith, solicits, accepts, or receives from others, funds, securities, or property, either directly or through capital contributions, the sale of stock or other forms of securities, or otherwise, for the purpose of trading in commodity interests, including any (I)commodity for future delivery, security futures product, or swap; (II)agreement, contract, or transaction described in section 2(c)(2)(C)(i) of this title or section 2(c)(2)(D)(i) of this title; (III)commodity option authorized under section 6c of this title; or (IV)leverage transaction authorized under section 23 of this title; or (ii)who is registered with the Commission as a commodity pool operator. (B) Further definition The Commission, by rule or regulation, may include within, or exclude from, the term commodity pool operator any person engaged in a business that is of the nature of a commodity pool, investment trust, syndicate, or similar form of enterprise if the Commission determines that the rule or regulation will effectuate the purposes of this chapter.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary

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