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
03/16/2001	01-15 ; Rules 4.22(c) & (d);; No-Action The CPO of a pool, which commenced trading November 2000, requested exemption from the requirement of Rule 4.22(d) that the pool's 2000 Annual Report be audited. The participants supported the request. The exemption was granted upon condition that: (1) an unaudited 2000 Annual Report is provided to the participants, Commission, and NFA, and (2) the audited 2001 report will include the 2000 data.
03/16/2001	01-14 ; Rules 4.22(c) & (d);; No-Action The CPO of a small fund requested exemption from filing a certified Annual Report for year ending December 2000. The participants submitted statements in support of the exemption. The exemption was granted based on the size of the fund, the closely held nature of the fund and the fund was not soliciting or accepting new participants.
03/15/2001	01-13 ; Sections 4.22(c) & (d);; No-Action The CPO of a pool, which commenced trading June 2000, requested exemption from the requirement of Rule 4.22(d) that the pool's 2000 Annual Report be audited. The request was denied on the basis of the length of time the pool was in operation and the size of the pool. The CPO was required to file a certified Annual Report for 2000 and granted an extension of time in which to file the required report.
03/14/2001	01-12 ; Rule 4.23;; No-Action Exemption: A U.S. CPO entered into an agreement with its administrator, an offshore entity, to maintain the books and records of the non-U.S. commodity pools operated by the U.S. CPO at its administrator's offshore location. The exemption was granted upon several conditions, including: (1) the CPO notify the Division if the location of any such books and records changes from that as represented to us; (2) the CPO notify the Division of any changes in law that would affect or impede production of the books and records; and (3) the CPO disclose where all books and records are maintained.
03/13/2001	01-18 ; Section 4f(b) of the CEAct and Commission Regulations 1.10 and 1.16;; No-Action The Division of Trading and Markets exempted a futures commission merchant (FCM) from the requirement in Regulations 1.10 and 1.16, that it file with the Commission a certified Form 1-FR-FCM within 90 days of its fiscal year end. The FCM did not carry customer accounts and was not otherwise engaged in activities requiring registration as an FCM. Furthermore, the FCM had submitted a request to have its FCM registration withdrawn.
03/12/2001	01-35 ; Section 4m(1) and Rule 4.14(a)(9);; No-Action The Division of Trading and Markets addressed questions concerning the operator of a website that would be operated initially as strictly informational, and subsequently as a manager of customer accounts. The Division advised that the operator would likely be ineligible for the registration exemption under Section 4m(1) even if less than 15 accounts were managed, due to the "holding out" arising from an Internet presence. Without more information no answer could be given whether an investor who contacts the website operator is considered to have been solicited. The website operator was advised to register as a CTA before managing any accounts, and was referred to the Division's July 22 1997 Interpretation regarding electronic delivery of disclosure and other materials. He was further advised that registering for the purpose of managing accounts would probably vitiate any exemption under Rule 4.14(a)(9) and that clients cannot be solicited prior to registration. The Division clarified the handling of performance data pre-dating the disclosure document by more than five years and for which no records exist. Finally, the Division said it has no objection to the use by dual CFTC/SEC registrants of a single disclosure document, and referred the writer top NFA for any questions regarding simultaneous compliance with CFTC and SEC disclosure rules.
03/12/2001	01-11 ; Section 5 and 5a of the Act;; No-Action The Division of Trading and Markets issued a letter granting no-action relief to permit the London Metal Exchange Limited to make its electronic trading and order matching system, known as Ime?select, available to its members in the U.S. without obtaining contract market designation or registering as a derivatives execution transaction facility pursuant to Sections 5 and 5a of the CEA.
02/23/2001	01-09 ; 4.22(d);; No-Action The CPO of a pool, which commenced trading late November 2000, requested exemption from the requirement of Rule 4.22(d) that the pool's 2000 Annual Report be audited. The participants supported the request. That exemption was granted upon condition that: 1) an unaudited 2000 Annual Report be provided to the participants, and 2) the audited 2001 report will include 2000 data.
02/22/2001	01-10 ; Section 4m(1);; No-Action Relief from CPO registration was granted to a general partner (X) of a private investment limited partnership where: (1) the other partner (Y) is registered as a CPO, (2) X's responsibilities will be limited to back office and administrative matters, and (3) the general partners have the same managing members.
02/09/2001	01-06 ; Rule 4.23;; No-Action A U.S. CPO entered into an agreement with its administrator, an offshore entity, to maintain the books and records of the non-U.S. commodity pools operated by the U.S. CPO at its administrator's offshore location. The exemption was granted upon several conditions, including: (1) the CPO notify the Division if the location of any such books and records changes from that as represented to us; (2) the CPO notify the Division of any changes in law that would affect or impede production of the books and records; and (3) the CPO disclose where all books and records are maintained.