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
01/07/2004	04-02 ; Section 2(a);; No-Action Singapore Exchange Derivatives Trading Limited’s request for No-Action relief in connection with the offer and sale of its futures contract based on the Standard & Poors CNX Nifty Index in the United States.
12/29/2003	04-01 ; Section 4(d)(a)(1);; No-Action The Division of Clearing and Intermediary Oversight issued an interpretation that an intercompany arrangement between a registered securities broker-dealer (BD) and a registered FCM (each commonly-owned) that included assignment of commission income from the FCM to the BD so that the BD could make a single payment to employees of both firms does not require the BD to register as an FCM. The BD will not solicit or accept customer orders for futures or commodity option contracts, nor will it handle customer funds related thereto. Both companies share senior management, office space and support staff. The registered representatives of the broker-dealer are also APs of the FCM, and the BD will provide all employer-related administrative functions, including human resources functions, and consequently the payment of futures-related commissions to the APs of the FCM.
12/23/2003	04-03 ; Sections 17(j) and 17 (k) of the CEAct.;; No-Action The Division of Clearing and Intermediary Oversight declined, in response to a written request, to recommend that the Commission withdraw its approval of an NFA rule that provides that futures commission merchants that are forex dealer members impose on customers a security deposit of two percent on retail over-the-counter foreign currency transactions involving "major" currencies.
11/05/2003	03-37 ; Rule 1.17;; No-Action No-action position permitting futures commission merchants, subject to certain limitations, to include stock of the Board of Trade Clearing Corporation as a current asset in computing their adjusted net capital under Commission Rule 1.17.
11/04/2003	03-36 ; Regulation 32.13 (g);; No-Action The Australian Wheat Board (AWB) seeks an interpretive letter authorizing its wholly-owned subsidiary, AWB (USA), Inc., to conduct over-the-counter trading, both as an offeror and an offeree of agricultural trade option contracts, in accordance with the exemptive provisions of Regulation 32.13(g). The letter finds that AWB's proposed option dealings, as described in its letter, would fall within the exemption.
10/17/2003	03-35 ; Section 2(a);; No-Action National Stock Exchange of India Limited's request for no-action relief in connection with the offer and sale of its futures contract based on the Standard & Poors CNCX Nifty Index in the United States.
10/09/2003	03-34 ; Section 4m(1) - CPO registration requirements;; No-Action The Division of Clearing and Intermediary Oversight took a no-action position permitting a CPO to claim exemption under rule 4.13(a)(3) with respect to an existing pool, notwithstanding that one participant was not an accredited investor ("AI"), where the non-AI was a charitable trust formed by family members who were AIs to teach their children about charitable giving, and the family members were also invested in the pool.
10/01/2003	03-33 ; Section 4m(1) - CPO and CTA registration requirements;; No-Action The Division of Clearing and Intermediary Oversight took: (1) a CPO registration no-action position regarding an SEC-registered investment adviser (the "Adviser") and the directors of a family of Puerto Rico investment companies (the "Funds"); and (2) a CTA registration no-action position regarding the Adviser. Each of the Funds is registered under the Puerto Rico Investment Companies Act, has its principal place of business in Puerto Rico, and may be offered and sold only to persons whose principal place of business or principal residence is in Puerto Rico. At least 75% of each Fund's directors have their principal residence in Puerto Ricco and none of the directors is subject to statutory disqualification under section 8(a)(2) or (a)(3) of the CEAct.
08/25/2003	03-31 ; 4d(a)(2) of the CEAct, Regulation 1.20 and Regulation 30.7;; No-Action A bank requested an interpretation that a deposit account product they developed would be acceptable for the deposit of customer segregated funds in accordance with Commission Regulation 1.20. Based on an analysis of the account, the Division issued an interpretation that the account would be acceptable as a deposit location as the account would be properly titled and covered by appropriate acknowledgements by the bank, and the funds in the account would at all times be immediately available for withdrawal on demand. The Division also confirmed that as the account was acceptable for the deposit of segregated funds, the account also was adequate to fulfill the requirements of Commission Regulation 30.7 with respect to secured amounts.
08/13/2003	03-32 ; Regulation 4.7;; No-Action The Division of Clearing and Intermediary Oversight confirmed exemptive relief previously granted to a registered CPO from the disclosure document, periodic and annual reporting requirements of Rule 4.7 in connection with the operation of a master fund that previously had as its sole participants two feeder funds that are operated by the CPO and an affiliate of the CPO. The Division confirmed the prior exemption despite the fact that the CPO of the master fund had allowed two investors from the feeder funds to invest directly in the master fund, but provided them with disclosure document and periodic and annual financial reports required by Rule 4.7. This relief is subject to the condition that: (1) the CPO comply with all the conditions set forth in the previous exemptive letters (except that it may continue to allow the two investors to participate in the master fund); and (2) the CPO continue to provide periodic and annual financial reports to the two investors in accordance with the requirements of Rules 4.7(b)(2) and 4.7(b)(3).