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
10/02/2002	02-104 ; Section 2(c)(2)(B);; No-Action The Division of Clearing and Intermediary Oversight provided an interpretation that a registered FCM who limits its activities to acting solely as a counterparty under Section 2(c)(2)(B)(ii) of the Act for foreign currency transactions conducted on an off-exchange basis, would not be subject to CFTC Rule 1.33. The Division noted, however, that the FCM remains subject to certain provisions of the Act as set forth in Section 2(c)(2)(C) of the Act, including the relevant antifraud provisions.
09/30/2002	02-106 ; Rule 30.4(a) and (b);; No-Action The Division of Clearing and Intermediary Oversight issued a letter granting no-action relief in the case of a foreign bank's affiliate that has been granted an exemption from registration as a futures commission merchant pursuant to Commission Rule 30.10. The relief permits the employees of a U.S. branch of the foreign bank to refer bank customers located in the U.S., on an unsolicited basis, to the bank affiliate with the Rule 30.10 exemption for purposes of engaging in foreign futures and options trading, without the foreign bank or the U.S. branch having to register with the Commission as a futures commission merchant or introducing broker.
08/29/2002	02-102 ; Regulations 4.21 and 4.22;; No-Action The Division of Clearing and Intermediary Oversight provided exemptive relief to CPO X from the Disclosure Document delivery requirement and periodic and annual reporting requirements of Rules 4.21 and 4.22, respectively, in connection with its operation of a master fund that has as its sole participants two feeder funds. CPO X serves as the CPO of one of the feeder funds and CPO Y serves as the CPO of the other feeder fund. Both CPOs share the same owners. Relief is subject to the conditions that: (i) CPO X and CPO Y remain the CPOs of the respective funds, and the owner of CPO X and CPO Y remain the same; (ii) participation in the Master Fund is limited to the feeder funds and other funds for which either CPO or CPO Y are the CPO; and (iii) the annual reports of the feeder funds contain financial statements that include, among other information, the fees associated with the operation of the Master Fund expressed in dollars and a detailed schedule of investments made by the Master Fund.
08/29/2002	02-101 ; Rule 4.22(c) & (d);; No-Action The CPO of a fund that began trading late in the year requested exemption from filing an Annual Report for year ending December 2001. The exemption was based on the fact that the 2002 Annual Report will cover the entire operating history of the fund through January 15, 2003.
08/23/2002	02-99 ; Regulations 4.7(b)(1), 4.7(b)(2), and 4.7(b)(3);; No-Action The Division of Clearing and Intermediary Oversight provided exemption relief to a registered CPO from the disclosure and periodic and annual reporting requirements of Rules 4.7(b)(1), 4.7(b)(2) and 4.7(b)(3) in connection with its operation of a master fund that has as its sole participants two feeder funds that are also operated by the CPO. The relief is subject to the conditions that: (i) the CPO remain the CPO of the Master Fund and the Feed Funds; (ii) participation in the Master Fund is limited to the Feeder Funds, and any fund for which the CPO is the sole CPO; and (iii) the annual reports of the Feeder Funds contain financial statements that include, among other information, the fees associated with the operation of the Master Fund expressed in dollars and a detailed schedule of investments made by the Master Fund.
08/23/2002	02-98 ; Regulations 4.7(b)(2), and 4.7(b)(3);; No-Action The Division of Clearing and Intermediary Oversight provided exemptive relief to a registered CPO (CPO T) from the periodic and annual reporting requirements of Rules 4.7(b)(2) and 4.7(b)(3) in connection with its operation of a master fund that has as its sole participants three feeder funds. CPO T serves as the CPO of two of the feeder funds and CPO U serves as the CPO of the remaining feeder fund. Both CPOs share the same owners. Relief is subject to the conditions that: (i) CPO T and CPO U remain the CPOs of the respective funds, and the owner of CPO T and CPO U remain the same; (ii) participation in the Master Fund is limited to the feeder funds; and (iii) the annual reports of the feeder funds contain financial statements that include, among other information, the fees associated with the operation of the Master Fund expressed in dollars and a detailed schedule of investments made by the Master Fund.
08/23/2002	02-97 ; Rule 4.7;; No-Action The CPO of a 4.7 fund of funds pool requested permission to provide quarterly reports to participants, as required by Rule 4.7 (b)(2), 45 calendar days after the end of the reporting period, rather than 30 calendar days after quarter-end. The exemption was granted based on the fact that after substantial efforts were made, and due to reasons beyond the control of the CPO, the financial information could not be received earlier from the offshore sub-funds.
08/21/2002	02-103 ; Section 4m(1);; No-Action The Division of Clearing and Intermediary Oversight issued a CPO registration no-action position to certain Market Maker firms whose sole commodity interest trading would be in security futures products, on a proprietary basis. This position was based upon, among others, representations that each firm: was registered as a broker/dealer with the SEC; was a member of a national securities exchange; was comprised of specified persons; and was not subject to a statutory disqualification under the CEAct. The Division issued a CTA registration no-action position to the Traders of these firms based upon similar representations. To obtain this relief, however, a Market Maker must file a Claim with the Commission which, among other things, permits the Commission to inspect the Market Maker's books and records to confirm the availability of the relief and requires the Market Maker to annually update the Claim.
08/21/2002	02-100 ; Section 4m(1);; No-Action The Division of Clearing and Intermediary Oversight issued a CTA registration no-action position where the sole client was a commodity pool (the Fund) operated by a registered CPO and all of the participants in the Fund where the officers of the CPO: (1) had a minimum of three years experience at the CPO; (2) had a least five years of experience in trading commodity interests; and (3) were QEPs. The relief is subject to the conditions that the CPO remains: (1) the managing member and CPO of the Fund, and (2) registered as a CPO.
08/13/2002	02-95 ; Rule 4.7;; No-Action The CPO of a 4.7 fund of funds pool requested an exemption to provide quarterly reports to participants 45 calendar days after the end of the reporting period, rather than 30 calendar days after quarter-end, as required by Rule 4.7(b)(2). The exemption was granted based on the fact that, after substantial efforts were made and due to reasons beyond the control of the CPO, the financial information from the underlying funds could not be received earlier. Further, it was conditioned upon the regular distribution of monthly valuations.