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
08/10/1998	98-66 ; Section 4m(1) - CPO and CTA registration requirements;; No-Action The Division of Trading and Markets had previously denied a request for relief from CPO and CTA registration by certain affiliated persons involved in the operation and advising of a securities investment partnership where the request was based on representations that the amount of assets used by the partnership for commodity interest trading would not exceed 2%, and that commodity interest trading would not be speculative. The Division denied the requester's subsequent request for interim relief pending formal rulemaking by the Commission regarding an NFA-proposed registration exemption for operators of pools that limit their commodity interest trading to a specified minimal level.
08/04/1998	98-60 ; Rule 4.7(a) - Exemptive Relief for CPO;; No-Action The Division of Trading and Markets provided exemptive relief to a registered CPO to permit it to accept the investment of a non-QEP into all existing and future domestic exempt pools operated by the CPO and from the ten percent investment limitation of Rule 4.7(a)(1)(ii)(B)(2)(xi). The non-QEP is a law partner who was, and, for the purpose of the relief requested, will be involved in the creation of every domestic exempt pool operated by the CPO since 1989. By virtue of this work, the non-QEP has or will have ready access to all information pertinent to an investment in the exempt pools. In addition, the non-QEP will consent to being treated as a QEP for purpose of his investments in the exempt pools and to a waiver from the ten percent limitation for investment of the pool's assets in other exempt pools.
07/22/1998	98-47 ; Rule 4.7(a);; No-Action The Division of Trading and Markets provided exemptive relief under Rule 4.7(a)to a registered CPO, notwithstanding the presence of non-QEPs in its pool, where the non-QEPs are the parents of the sole owner, managing member, principal and registered associated person of the CPO. These non-QEPs have ready access to information pertinent to an investment in the pool and agree to being treated as QEPs.
07/22/1998	98-46 ; Rules 4.23 and 4.33;; No-Action The Division of Trading and Markets provided exemptive relief to a registered CPO and CTA from the books and records location requirements of Rule 4.23 and 4.3 3 such that the CPO/CTA may maintain its books and records at its branch office where it performs its back-office functions. The exemption was subject to several conditions, including that: (1) the CPO/CTA would remain responsible for ensuring that all books and records required by Rules 4.23 and 4.33 would be maintained in accordance with Rule 1.31; and (2) that the CPO/CTA would provide access to such books and records in accordance with Rule 1.31 upon the request of an authorized representative of the Commission or any other agency authorized to review such books and records.
06/24/1998	98-56 ; Rule 4.7(a;; No-Action The Division of Trading and Markets confirmed that a registered CPO may rely on three prior letters from the Division of Trading and Markets granting certain relief from Rule 4.7(a) to two predecessor firms to the CPO. The Division of Trading and Markets also provided exemptive relief under Rule 4.7(a) to the CPO such that it may treat one of its non-QEP employees as a QEP. The non-QEP is a Vice President, heads the Trader Recruitment and Development Department, and designs portfolios for commodity pools managed by the CPO. The non-QEP has ready access to information pertinent to an investment in the pool and agreed to being treated as a QEP.
06/24/1998	98-54 ; Rule 4.7(a);; No-Action The Division of Trading and Markets provided exemptive relief to permit a registered CPO to treat two employees of the CPO as if they satisfy the qualified eligible participant (QEP) criteria of Rule 4.7(a) in connection with its operation of the pool. Each non-QEP participant: 1) was an accredited investor; 2) had been employed by the CPO and its affiliate for at least five years, 3) had substantial experience in the financial services industry; 4) had access to the books and records pertinent to an investment in the pool; and 5) consented to being treated as a QEP.
06/22/1998	98-59 ; Rule 4.7(a);; No-Action The Division of Trading and Markets (the Division) provided exemptive relief to a registered CPO to permit it to treat a family trust (the Trust) as if it satisfies the qualified eligible participant (QEP) criteria of Rule 4.7(a) in connection with its operation of the pool. The Chairman of the Board of the CPO, who is a QEP, established the Trust for estate planning and investment purposes and its sole beneficiaries are his two teenage sons. The CPO will serve as the investment adviser to the Trust and is responsible for making all investment decisions on behalf of the Trust. The trustee of the Trust provided a letter wherein he consented to the Trust's treatment as a QEP and the CPO represented that its Chairman, on behalf of the CPO, would have access to information pertinent to an investment in the pool. In addition, the Division provided exemptive relief to the CPO to permit it to treat the Trust as a QEP for the purpose of qualifying the pool itself as a QEP under Rule 4.7 (a) (1) (ii) (D) .
06/22/1998	98-55 ; Rule 4.7(a);; No-Action The Division of Trading and Markets (the Division) provided exemptive relief to a registered CPO to permit it to treat two persons as if they satisfy the qualified eligible participant (QEP) criteria of Rule 4.7(a) in connection with its operation of the pool. The Non-QEPs were employed by the CPO, qualified as a accredited investors, had substantial experience in the financial services industry and had access to books and records pertinent to an investment in the pool. In addition, the Division provided exemptive relief to the CPO to permit it to treat the Non-QEPs as QEPs for the purpose of qualifying the pool itself as a QEP under Rule 4.7 (a) (1) (ii) (D) .
06/22/1998	98-53 ; Rule 4.7(a);; No-Action The Division of Trading and Markets (the Division) provided exemptive relief to a registered CPO to permit it to treat three persons if they satisfy the qualified eligible participant (QEP) criteria of Rule 4.7(a) in connection with its operation of the pool. The Non-QEPs are registered associated persons of the CPO, qualify as accredited investors and have substantial experience in the financial services industry. The CPO represented that it would obtain the written consent of the Non-QEPs to be treated as QEPs and that they would have access to the books and records pertinent to an investment in the pool. In addition, the Division provided exemptive relief to the CPO to permit it to treat the Non-QEPs as QEPs for the purpose of qualifying the pool itself as a QEP under Rule 4.7(a) (1) (ii) (D) .
06/22/1998	98-51 ; Rule 4.7(a);; No-Action The Division of Trading and Markets provided exemptive relief to a registered CPO to permit it to treat and investor as if she satisfies the qualified eligible (QEP) criteria of Rule 4.7(a) in connection with its operation of the pool. The Non-QEP: (1) is the wife of the individual who is the sole proprietor of the pool's CTA; (2) is the co-owner of a joint account that is an existing participant in the pool; (3) assisted her husband in establishing the CTA; (4) currently serves as the CTA's office manager, providing accounting, bookkeeping, employee benefits and general business advice; (5) qualifies as an accredited investor; and (6) is an attorney who has practiced corporate and real estate law for six years. In addition, the CPO represented that it would obtain the written consent of the Non-QEP to be treated as a QEP and that the Non-QEP would have access to all books and records pertinent to an investment in the pool.