CFTC Staff Letters Archive

CFTC Staff Letters Archive provides Letters from 2007 and earlier. For Letters published 2008 or later visit the All Letters page.

There are no Advisory Letters or Other Written Communications for 2007 or earlier.

Date	PDF and Description
07/18/2007	07-14 ; Regulation 1.33;; No-Action The Division of Clearing and Intermediary Oversight provided an Interpretation that a registered futures commission merchant ("FCM") would be in compliance with Regulation 1.33, which requires an FCM to furnish its customers certain Account Statements, where the customer has been provided electronic access via a password-protected website to the information required to be transmitted. This relief is subject to conditions that the FCM: (1) receive a written statement from the customer acknowledging and agreeing to the foregoing arrangement; and (2) promptly furnish to the customer, upon its request, paper versions of the customer’s Account Statements.
07/12/2007	07-12 ; Regulation 4.7;; No-Action The Division of Clearing and Intermediary Oversight granted in part and denied in part a request for exemptive relief from the requirement that all participants in a Regulation 4.7 exempt pool must be QEPs at the time they invest in the pool. The CPO had converted the pool to a Regulation 4.7 exempt pool but had permitted two non-QEPs to continue to participate in the pool. The Division granted exemption with respect to one participant who had been principal of the CPO at the time the pool was converted, but before the Commission had amended the QEP definition to include a CPO’s principals. Relief was denied with respect to a non-QEP that did not meet any of the definitional criteria, and the CPO was given 60 days either to demonstrate that it had been (and would continue to be) in full compliance with Part 4 with respect to the non-QEP, or to redeem the non-QEP’s interest in the pool.
06/25/2007	07-10 ; Section 4d(a)(1) requirement to register as an introducing broker;; No-Action The Division of Clearing and Intermediary Oversight took a no-action position with respect to two APs of an IB receiving per-trade compensation through their respective corporations (instead of directly) without registering the corporations as IBs. This position was based upon, among other facts, that: (1) the corporations were each registered as a CTA; (2) the CTAs would disclose to their customers the manner in which the APs receive compensation; and (3) the APs and their respective CTAs acknowledged joint and several liability for any violation of the Act or of Commission regulations.
06/18/2007	07-11 ; Section 2(a) of the Commodity Exchange Act;; No-Action Eurex Deutschland's Request for No-Action Relief in Connection with the Offer and Sale in the United States of its Dow Jones STOXX 600 Index Futures Contract and its Dow Jones STOXX Mid 200 Index Futures Contract.
06/12/2007	07-13 ; Regulation 1.55(c)(3);; No-Action The Commission provided a registered futures commission merchant (“FCM”) with an exemption from Commission Regulation 155.3(c)(3), which requires an FCM that handles the account of an associated person (“AP”) of another FCM, or introducing broker (“IB”), to send to the other FCM or IB certain account statements and written records relating to the AP’s account. The exemption applies where the IB has been provided electronic access to the information required to be transmitted by means of its access to an Automated Order Routing System (“AORS”). This relief is subject to conditions that the Company: (1) receive a written statement from the IB in which such IB acknowledges and agrees to the foregoing arrangement; and (2) promptly furnish to the IB, upon its request, floor and office order tickets related to trading of the IB’s APs.
06/01/2007	07-09 ; Section 4m(1) of the Commodity Exchange Act;; No-Action For the reasons provided, the Division of Clearing and Intermediary Oversight denied a request to reconsider the conditions for relief set forth in CFTC Staff Letter 05-22.
05/30/2007	07-08 ; Section 4d of the Commodity Exchange Act;; No-Action Division of Clearing and Intermediary Oversight issued a letter granting no-action relief to permit the foreign affiliate of a U.S. futures commission merchant (“US FCM”) to act as an introducing broker (“IB”) so as to introduce institutional U.S. customers to any registered FCM for purposes of trading U.S. exchange-traded futures and options, without registering as an IB under the Commodity Exchange Act (“Act”). Pursuant to Regulation 30.10, the foreign affiliate has been granted an exemption from registration as an FCM for purposes of offering foreign futures and options to U.S. customers. The Regulation 30.10 relief, however, does not extend to any activities related to trading, directly or indirectly, on U.S. exchanges. The relief was predicated upon, among other conditions, an acknowledgment by US FCM that it will be jointly and severally liable for any violations of the Act or the Commission’s regulations committed by the foreign affiliate in connection with the latter’s handling of orders for U.S. customers for trading of futures and options on U.S. exchanges, including those orders executed by a foreign affiliate and given up to another FCM.
05/24/2007	07-07 ; Section 2(a) of the Commodity Exchange Act;; No-Action No-Action Relief to Offer and Sell in the United States Singapore Exchange Derivatives Trading Limited's (SGX-DT) U.S. Dollar Denominated Nikkei 225 Index Futures Contract.
05/24/2007	07-06 ; Sections 5 and 5a of the Commodity Exchange Act;; No-Action The Division of Market Oversight issued a letter granting no-action relief to permit the Dubai Mercantile Exchange Limited (DME), to make its electronic trading and order matching system (DME Direct), available to DME members and guaranteed customers in the U.S. without obtaining contract market designation or registration as a derivatives transaction execution facility pursuant to Sections 5 and 5a of the CEAct. The relief applies to DME members and guaranteed customers trading for their own accounts; DME members and guaranteed customers who are registered as futures commission merchants (FCMs) or who are exempt from such registration pursuant to CFTC Rule 30.10 (Rule 30.10 Firms) submitting orders from or on behalf of U.S. customers to DME Direct for execution or accepting orders for U.S. customers transmitted via automated order routing systems for transmission to DME Direct; and DME members and guaranteed customers who are registered as Commodity Pool Operators (CPO) or Commodity Trading Advisors (CTA), or who are exempt from such CPO or CTA registration pursuant to Commission Regulation 4.13 or 4.14, submitting orders to DME Direct on behalf of U.S. pools they operate or U.S. customer accounts for which they have discretionary authority, respectively, provided that an FCM or Rule 30.10 Firm acts as clearing firm and guarantees without limitation all such trades of the CPO or CTA effected through submission of orders on DME Direct.
04/26/2007	07-05 ; Section 4d of the Commodity Exchange Act;; No-Action The Division of Clearing and Intermediary Oversight issued a letter granting no-action relief to permit two foreign affiliates of a U.S. futures commission merchant (“US FCM”) to act as an introducing broker (“IB”) so as to introduce institutional U.S. customers to any registered FCM for purposes of trading U.S. exchange-traded futures and options, without registering as an IB under the Commodity Exchange Act (“Act”). Pursuant to Regulation 30.10, the foreign affiliates have been granted an exemption from registration as an FCM for purposes of offering foreign futures and options to U.S. customers. The Regulation 30.10 relief, however, does not extend to any activities related to trading, directly or indirectly, on U.S. exchanges. The relief was predicated upon, among other conditions, an acknowledgment by US FCM that it will be jointly and severally liable for any violations of the Act or the Commission’s regulations committed by the foreign affiliates in connection with the latter’s handling of orders for U.S. customers for trading of futures and options on U.S. exchanges, including those orders executed by a foreign affiliate and given up to another FCM.