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
04/23/1997	97-32 ; Rule 4.7(a)(1)(ii)(B)(2) (xi);; No-Action The Division of Trading and Markets would not recommend that the Commission take any enforcement action for failure to comply with Rule 4.7(a) against a commodity pool operator (CPO) based upon the CPO's investment of more than ten percent of the assets of any pool subject to the ten percent limitation (the Investor Pool) in a 4.7 exempt pool operated by the same CPO (the Investee Pool) . Relief from the ten percent limitation on investment in Rule 4.7(a) exempt pools was granted only for investment in Investee Pools that have the same general partner and CPO as the Investor Pools. Relief was conditioned upon all investors and prospective investors in the Investor Pool receiving the same disclosures and reports required under Part 4 and the CPO complying with the same recordkeeping requirements applicable under Part 4 as if the Investee Pools were non-exempt pools.
04/21/1997	97-36 ; Rule 4.22;; No-Action The Division of Trading and Markets granted a commodity pool operator a permanent extension of time in which to comply with the annual report requirements of Commission Rule 4.7(a)(2)(ii) in connection with the operation of four commodity pools. Each commodity pool was organized as a fund of funds and relief was conditioned on investors being informed of the extension of time granted to the commodity pool operator.
04/21/1997	97-35 ; Rule 4.22;; No-Action The Division of Trading and Markets granted a commodity pool operator a permanent extension of time in which to comply with the quarterly report requirements of Commission Rule 4.7(a)(2)(ii) in connection with the operation of two commodity pools. Each commodity pool was organized as a fund of funds and relief was conditioned on investors being informed of the extension of time granted to the commodity pool operator.
04/21/1997	97-31 ; Section 4m(1);; No-Action In response to a request by a registered CTA, the Division of Trading and Markets gave "no-action" relief to the CPOs of pools advised by the CTA, permitting each such CPO to identify by name and title in pool Disclosure Documents certain of the CTA's principals without providing such principals' business backgrounds as required by Rule 4.24(f). The CTA had represented that the marketing, accounting administrative and trading functions performed by the specified principals are insignificant to the pool participants (for whom such functions are performed, if at all, by the CPO or its agents). The CPOs would still be required to disclose the business backgrounds of the CTA's sole shareholder and all of its directors, senior officers and investment policy committee members.
04/21/1997	97-30 ; Section 4m(1);; No-Action The Division of Trading and Markets gave "no-action" relief from CPO registration requirements to the general partner of a registered securities broker-dealer and member of the Chicago Board Option Exchange (CBOE), where the limited partners of the broker-dealer were a registered floor broker, a trust for the benefit of the floor broker's father, two former CBOE members and a registered floor trader. Relief was conditioned upon: (1) the broker-dealer will remain registered as such; (2) no solicitation of additional limited partners of the broker-dealers will be conducted and no new limited partners or investors will be admitted to the broker-dealer or its general partner; and (3) the broker-dealer's trading of commodity interests will be restricted to hedging and risk management in connection with its CBOE option positions.
04/18/1997	97-27 ; Rules 4.21-4.26;; No-Action The Division of Trading and Markets granted no-action relief to a registered CPO and CTA from the disclosure, reporting and recordkeeping requirements of Rules 4.21-4.2 6 in connection with the CPO's operation of a commodity pool. The pool is compromised of immediate family members and close personal friends of the CPO/CTA. In addition, each limited partner of the pool shall have ready access to the books and records of the pool.
04/01/1997	97-24 ; Rule 4.7(a);; No-Action The Division of Trading and Markets permitted a registered CPO to continue to claim relief under Rule 4.7(a), notwithstanding the admission of a non-QEP Trust into the Pool. The sole beneficiary of the Trust is the grandniece of the beneficial owner of the managing general partner of the Pool and the sole trustee of the Trust in a nephew of the beneficial owner of the managing general partner, a QEP and a registered CPO with over twelve years of investment experience. In addition, the Division permitted the registered CPO of the Pool to claim relief from the restriction in Rule 4.7(a)(1)(ii)(B)(2)(xi) which would otherwise have prevented the Pool, which itself qualified as a QEP but had non-QEP investors, from investing more than ten percent of its assets in other Rule 4.7 exempt pools.
03/27/1997	97-25 ; Section 4m(1);; No-Action The Division of Trading and Markets granted relief from registration as a CPO to one general partner of a "fund or funds," for which a claim for exemption pursuant to Rule 4.12(b) will be filed with the Commission where, among other things: (1) a registration CPO would be added as a second general partner; (2) the registered CPO and no-actioned CPO were affiliated; (3) the no-actioned CPO agreed to limit its activities: and (4) both CPOs agreed to assume joint and several liability for any violations of the Act or Commission regulations committed by the other as a general partner and CPO of the Fund.
03/27/1997	97-19 ; 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 was established primarily to provide operational support to the CPO/CTA.
03/26/1997	97-38 ; Act Section 4d; Rules 1.20 et seq.;; No-Action The Division advised that neither the Commodity Exchange Act nor the Commission's rules promulgated thereunder would be violated if a registered investment adviser (RIA) provided cash management services to futures commission merchants (FCMs) with respect to segregated customer funds (provided that the RIA will have limited power of attorney or comparable limited discretion, and provided that each FCM client will maintain appropriate internal controls). Such services would include purchase and sale of instruments permitted by Rule 1.25, execution of reverse repurchase agreements and consummation of reverse repurchase transactions. The RIA would not handle customer funds, securities purchased with such funds, or proceeds of sales of such securities. Each individual FCM's customer funds would be separately accounted for, and the RIA's compensation would be paid directly by its client FCM, without use of customer funds. The Division stated it did not believe that the described activities would require the RIA to register with the Commission in any capacity.