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
06/21/2001	01-67 ; Section 4d(a)(1);; No-Action The Division of Trading and Markets issued a no-action position, for failing to register as an IB, where an individual who authors a newsletter and maintains the website of a registered IB, advertises subscriptions to the newsletter on the website and provides the names of subscribers to the IB. The Division took this position based upon representations that: (1) the author of the newsletter does not have contact with commodity customers, other than through his newsletter; (2) he is not directly compensated for providing the IB with the list of subscribers; and (3) the IB does not initiate contact with any person on the subscriber list.
06/21/2001	01-66 ; Rule 4.22(f)(1);; No-Action A registered CPO requested, under Rule 4.22(f)(1), an extension of time to file its audited report. The CPO anticipated that the audit would be final by late June. The CPO submitted a statement from the pool's accountant. Based on supporting documentation, the request for relief was granted for the CPO until July 2, 2001.
06/21/2001	01-65 ; Rule 4.22(f)(1);; No-Action A registered CPO requested, under Rule 4.22(f)(1), an extension of time to file its audited report. The CPO did not have the audited reports of investee pools. The CPO submitted a statement from the pool's accountant and provided information regarding the missing investee pools. Based on supporting documentation, the request for relief was granted for the CPO until June 29, 2001.
06/19/2001	01-63 ; Regulations 4.21 and 4.22;; No-Action The Division of Trading and Markets provided exemptive relief to registered CPOs from the periodic and annual reporting requirements of Rules 4.21 and 4.22 in connection with their joint operation of a master fund that has as its sole participants two feeder funds that are also operated by the CPOs. The relief is subject to the conditions that: (i) the CPOs remain the CPOs of the Master Fund and the Feeder Funds; (ii) participation in the Master Fund is limited to the two Feeder Funds, and any fund for which the CPOs are the sole CPOs; 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.
06/14/2001	01-64 ; Section 4m(1) and Rule 4.14(a)(9);; No-Action The Division of Trading and Markets issued an interpretation that the developer of a weather prediction software program is eligible for the exemption provided by Rule 4.14(a)(9), where the developer creates an Internet website to market the software program to bulk (commercial) purchasers and sellers of natural gas. The program would issue impersonal recommendations indiscriminately to all subscribers to buy, sell or wait with respect to physical natural gas as well as derivative instruments, including commodity interests. In addition, the website would offer calculator functions that enable a subscriber to translate the program's recommendations into numerical amounts based on the subscriber's particular goals for projected natural gas production or consumption. The calculator functions would be entirely subscriber-operated with no involvement by the program developer.
06/14/2001	01-61 ; Section 2(a);; No-Action No-Action request to permit the offer and sale in the United States of futures contracts based on the S&P Euro Index and the S&P Europe 350 Index traded on MEFF Renta Variable.
06/13/2001	01-62 ; Section 4m(1) and Rule 4.14(a)(8);; No-Action The Division of Trading and Markets took: (1) a CPO registration no-action position regarding a non-U.S. bank (with no U.S. directors) serving as trustee of a Cayman Islands pool in which all participants are (and would be) non-U.S. (Japanese); and (2) a CTA registration no-action position regarding the Cayman Islands pool's SEC-registered investment adviser. No marketing activity for the pool would solicit U.S. persons and no capital would be accepted or sought from U.S. sources. Except for the fact that the Cayman Islands pool is not a Rule 4.5 entity, the adviser would meet the eligibility requirements for Rule 4.14(a)(8). No officer or director of the bank or adviser is subject to statutory disqualification. The Division also advised that by taking the CTA no-action position it was not barring the adviser from subsequently claiming relief under Rule 4.14(a)(8), should it decide to provide commodity interest trading advice to Rule 4.5 entities in a manner consistent with Rule 4.14(a)(8).
06/13/2001	01-60 ; Rules 4.41(b), 4.35(a)(6) and 4.35(a)(7);; No-Action The Division of Trading and Markets addressed questions concerning requirements applicable to certain hypothetical and proprietary presentations on a CTA's website. The Division advised that while Rule 4.41(b) requires that a prescribed cautionary statement accompany hypothetical results, the rule permits that either the statement specified therein, or a statement prescribed by a registered futures association, may be used. The Division also clarified the application of Rules 4.35(a)(6) and 4.35(a)(7) regarding the computation and presentation of proprietary performance, including pro-forma adjustments to reflect fees, commissions, and expenses that differ from the program offered to clients.
06/13/2001	01-59 ; Rule 4.22(f)(1);; No-Action A registered CPO requested, under Rule 4.22(f)(1), an extension of time to file its audited report. The audited reports of investee pools would not be available until mid-June 2001. The CPO submitted a statement from the pool's accountant and provided information regarding the missing investee pools. Based on supporting documentation, the request for relief was granted for the CPO until June 29, 2001.
06/13/2001	01-58 ; Rule 4.22(f)(1);; No-Action A registered CPO requested, under Rule 4.22(f)(1), an extension of time to file its audited report. The CPO was working to obtain a legal opinion concerning certain partnership issues. The CPO submitted a statement from the pool's accountant. Based on supporting documentation, the request for relief was granted for the CPO until July 30, 2001.