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
07/05/2000	00-83 ; Section 4m;; No-Action The Division of Trading and Markets: (1) confirmed continued effectiveness of previously-taken CTA and CPO registration no-action positions with respect to the operation of, and the providing of commodity interest trading advice to, a group of Puerto Rican investment companies (and similar investment companies yet to be formed), notwithstanding the substitution of an affiliated trust company for one of the two joint managing entities; and (2) took a CPO and CTA registration no-action position with respect to the trust company. The Division replied, in part, upon representation that: (1) 75% or more of the directors of each investment company are Puerto Rico residents; (2) shares will be sold exclusively to persons having principal residences or places of business in Puerto Rico; (3) each investment company will be registered as such under Puerto Rico law; (4) Rule 4.5(c)(2) trading restrictions will be observed; and (5) the trust company will comply with Rule 4.14(a)(8) in advising the investment companies. These positions were conditioned upon submission by the trust company to special calls.
07/05/2000	00-82 ; Section 4m(1);; No-Action The Division of Trading and Markets granted relief from the commodity pool operator registration requirement of Section 4m(1) to the co-general partner of a commodity pool partnership based upon, among other things, representations that: (1) the other general partner is registered as a CPO; (2) the other general partner is the president and a ninety percent shareholder of the co-general partner; (3) the other general partner is the managing general partner of the partnership and, as such, will undertake all CPO responsibilities in connection with the partnership, including performing all activities subject to regulation by the Commission; and (4) both general partners acknowledged that they will be jointly and severally liable for any violations of the Act or the Commission's regulations committed by the other in connection with the operation of the partnership.
07/05/2000	00-81 ; Rule 4.7(a);; No-Action The Division of Trading and Markets provided exemptive relief to a registered CPO that permits the CPO to treat five non-QEP investors, who are employed as analysts by the manager of the fund operated by the CPO, as if they satisfy the QEP criteria of Rule 4.7(a). The CPO represented that they are "knowledgeable employees" as that term is defined in Rule 3c-5 under the Investment Company Act of 1940.
06/30/2000	00-80 ; Part 35 of the Commission's rules;; No-Action On June 30, 2000, the Division of Trading and Markets issued a letter granting no-action relief in connection with the operation of a proposed electronic trading platform for the trading of physical commodities and derivative products relating to crude oil, heating oil, unleaded gasoline and jet kerosene. The platform will utilize an electronic trading and matching system that can be accessed through the Internet or dedicated communication lines, and it will be available only to approved participants and authorized brokers entering orders on their behalf. Participants will be limited to commercial entities that qualifying as "eligible swap participants" under specified provisions of Part 35 of the Commission rules.
06/30/2000	00-79 ; Section 4f(b) of the CEAct and Commission Regulation 1.17(c)(5)(x);; No-Action The Division of Trading and Markets took a "no-action" position with respect to a futures commission merchant (FCM) that, in computing its adjusted net capital, takes less than the full capital charge on open futures positions associated with its market making activities in the Goldman Sachs Commodity Index (GSCI) futures contract. As part of its market making activities, the FCM generally holds a core short position in the GSCI futures contract. The FCM manages the risk associated with the short GSCI position by going long in each of the futures contracts that comprise the GSCI. The no-action letter provides that the Division would not recommend enforcement action to the Commission if, in computing its adjusted net capital, the FCM did not take the full capital charges set forth in Regulation 1.17(c)(5)(x) on the futures contracts hedging the open GSCI futures positions.
06/30/2000	00-78 ; Foreign Trading System No-Action Letter;; No-Action The Commission issued a Statement of Policy expressing the view that foreign boards of trade that have placed automated trading systems in the U.S. pursuant to a Commission staff no-action letter should be permitted to list additional futures and option contracts through such systems without further regulatory action, subject to certain filing and certification requirements. The Statement of Policy does not apply to contracts that are covered by Section 2(a) (1) (B) of the CEAct.
06/21/2000	00-77 ; Section 2(a);; No-Action No-Action letter allowing the Singapore Exchange Derivatives Trading, Limited futures contract based on the Morgan Stanley Capital International Incorporated Singapore Free Stock Index to be offered or sold in the United States.
06/13/2000	00-76 ; Rule 4.22 (c) & (d);; No-Action The CPO of a pool, which ceased operations at the end of November, requested exemption from the requirements of Rules 4.22 (c) and (d) that the pool's 1999 Annual Report be audited. The participants submitted consent waiver statements in support of the exemption. The exemption was granted upon condition that an unaudited 1999 annual report be provided to the participants.
06/09/2000	00-75 ; Section 5 and 5a of the Act;; No-Action The Division of Trading and Markets (Division) issued a letter granting no-action relief to permit Hong Kong Futures Exchange Limited (HKFE) to make its electronic trading and order matching system, known as Hong Kong Automated Trading System (HKATS), available to Exchange Participants in the US without obtaining contract market designation pursuant to Sections 5 and 5a of the CEA.
06/08/2000	00-74 ; 4.22(c) & (d);; No-Action The CPO of a pool undergoing an orderly closing and liquidation of assets by the end of February 2000, requested exemption from the requirement of Rule 4.22(d) that the pool's 2000 Annual Report (to be filed 90 days after cessation on February 29, 2000) be audited. The participants submitted consent waiver statements in support of the exemption. The exemption was granted upon condition that the unaudited monthly reports of January 2000, and February 2000, be provided to the participants.