Key takeaways

In a series of recent letters, the Division of Swap Dealer and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“CFTC”) offers certain guidance and relief to securitization vehicles, mortgage real estate investment trusts (“mREITs”), and business development companies (“BDCs”).

• With regard to securitization vehicles, the Division provides (i) guidance on securitization vehicles that would not be included within the definition of “commodity pool,” (ii) no-action relief for certain securitization vehicles formed before October 12, 2012, and (iii) temporary relief from registration as a commodity pool operator (“CPO”) to operators of securitization vehicles.
• With regard to mREITs, the Division writes that it will not recommend enforcement action against the operator of an mREIT provided that the mREIT submits a claim for relief and satisfies certain threshold, marketing, and filing criteria.
• With regard to BDCs, the Division offers relief from registration as a CPO to operators of BDCs that satisfy certain threshold, marketing, and regulatory criteria.