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
06/03/1998	98-42 ; 4(a), 4(b), and 5 of the Commodity Exchange Act;; No-Action The Division of Trading and Markets (Division) issued a follow-up letter to the Deutsche Terminbosre (DTB) regarding the status of the Division's February 29, 1996, no-action letter permitting the placement of DTB computer terminals in the U.S. This new letter was issued in light of the pending merger between the DTB and the Swiss Options and Financial Futures Exchange (SOFFEX) to create a futures exchange organization called Eurex. The Division confirmed that eleven firms pending DTB membership, which were identified by the DTB to the Division, will be eligible to rely on the 1996 no-action position with respect to DTB terminal placement once they become DTB members and otherwise satisfy the conditions set forth in the 1996 letter. Other new DTB members, including current or future SOFFEX members, are not eligible to take advantage of the 1996 no-action position with respect to DTB terminal placement unless they receive separate written approval from the Division. The Division also clarified that the 1996 letter by its terms applies only to the execution by DTB members of transactions involving DTB futures and options products, and it does not extend to SOFFEX products or to new DTB/Eurex products unless the DTB receives separate written approval from the Division.
06/03/1998	98-41 ; Section 2(a);; No-Action No-action letter allowing the OM Stockholm AB futures contract based on the OMX Stock Index to be offered or sold in the United States.
05/22/1998	98-36 ; Rule 4.33;; No-Action The Division of Trading and Markets exempted a CTA from the requirement in Rule 4.33 that the CTA maintain its books and records at its main business office and permitted it to maintain its books and records at its branch office where all of the administrative functions of the CTA will be performed. The exemption was granted subject to several conditions, including that the CTA remain responsible for ensuring that all books and records required by Rule 4.33 are maintained in accordance with Rule 1.31 and for assuring their availability to the Commission, the National Futures Association and any other authorized to review them.
05/22/1998	98-34 ; 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 pools, where the non-QEPs are employees of the CPO and/or the parent corporation of the CPO. The non-QEPs are either directors, officers or traders for the CPO or the parent corporation. These non-QEPs relief have ready access to information pertinent to an investment in the pool and agree to being treated as QEPs. However, relief was denied to several other non-QEP individuals that are either parents, in-laws or spouses of the non-QEP employees being admitted by this letter.
05/12/1998	98-35 ; Rule 4.7(a);; No-Action The Division of Trading and Markets provided exemptive relief to a registered CPO to permit it to accept the investments of three persons who were not qualified eligible participants (the "Non-QEPs") into a Rule 4.7(a) commodity pool (the "Fund") operated by the CPO. The three Non-QEPs were employed by either the CPO or its affiliate, qualified as accredited investors, had substantial experience in the financial services industry and had access to books and records pertinent to an investment in the Fund.
05/05/1998	98-33 ; Rule 4d(l) of the Act - No-action Position Concerning Receipt of Finder's Fees by Unregistered IB;; No-Action The Division of Trading and Markets issued a no-action position to an unregistered IB and its sole principal to enable the IB to continue to receive finder's fees from a CTA to whom the IB had introduced clients when it was registered as an IB. The IB was no longer acting as an IB and its sole business activities was limited to accepting fees from its former CTA-clients. The principal was registered as an AP of one of these former CTA-clients. The Division previously had permitted the unregistered IB and its principal to receive these fees for a period of two years. The IB requested a continuation of this position for an additional one year. The no-action position was issued on condition that the IB's principal continue to be registered during the period the IB receives fees, the IB continue to comply with the previous letter granting no-action relief, and all fees would cease to be paid to the IB after the additional year.
04/28/1998	98-32 ; Request for Exemptive Relief from Rules 4.21, 4.22(a) and (b), 4.25, and 4.26;; No-Action The Division of Trading and Markets confirmed an exemption from the requirements of Rules 4.21, 4.22(a) and (b) , 4.25 and 4.26 that was previously given to a registered CPO notwithstanding the addition of certain additional participants in a pool operated by the CPO, where, among other things, each of participants: (1) is an investment manager for an entity affiliated with the CPO that serves as the co-investment manager of the pool; (2) consents to the pool's operation pursuant to exemptive relief; and (3) is given access to the books and records of the pool.
04/27/1998	98-30 ; 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 Rules 4.23 and 4.33 such that the CPO/CTA may maintain its books and records at the main business office of an affiliated company that will act as the administrator of the CPO/CTA would be subject to inspection pursuant to Rule 1.31 at the administrator's main office in accordance with all the provisions of Rule 1.31; and, furthermore, that the administrator agreed to provide access to such books and records pursuant to the guidelines set forth in Rule 1.31 upon the request of an authorized representative of the Commission or any other agency authorized to review such books and records.
04/07/1998	98-26 ; 4m(l);; No-Action The Division of Trading and Markets denied a request for relief from the commodity pool operator registration requirement of Section 4m(1) of the Act by the managing member of a limited liability company (LLC) where the request was based primarily on the representation that the amount of the LLC' s cash reserves used by the LLC for commodity interest trading would be modest. The Division stated that there currently is no exception to the obligation to register as a commodity pool operator based on the fact that a partnership makes only de minim investments, in commodity interests and took the position that the notice and comment rulemaking process, rather than a request for a no-action, is the appropriate method by which to evaluate whether such an exception would be consistent with the Act and in the public interest. The requestor was invited to file a petition for rulemaking.
04/01/1998	98-29 ; Rules 3.1, 4.36;; No-Action The Division of Trading and Markets denied the request of a CTA for no-action relief from listing sixteen of its employees as principals or for relief from amending its Disclosure Document each time a personnel change occurs with regard to one of its employees who qualifies as a principal. The Division noted that under the current Commission rules, it was unable to grant the CTA's request and further stated that the appropriate procedure for addressing the issues raised by its request would be through notice and comment rulemaking. The Division advised the CTA that it may recommend that the Commission initiate a rulemaking in the near future to address which employees in organizations like the CTA's should be considered "principals" for listing purposes.