Clifford Chance

Operators of Mortgage REITs Exempted from Requirements for Commodity Pool Operators

11 December 2012

The Commodity Futures Trading Commission's ("CFTC") Division of Swap Dealer and Intermediary Oversight has issued a no-action letter that exempts an operator of a mortgage REIT ("mREIT") that satisfies certain specified criteria from the requirements applicable to "commodity pool operator".  As a result, the operators of qualifying mREITs will not need to register as "commodity pool operators".  However, this exemption is not self-executing and the mREIT must file a claim for relief.

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