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 |
|---|---|
95-68;  ; CEAct Section 1a(5) and Rules 4.10(f), 4.14(a)(6) and 4.31;; No-Action If an IB solicits and trades customer accounts pursuant to trade recommendations made by a newsletter, hotline, or computer software system (Third Party Advisor), the Third Party Advisor must register as a CTA. If the IB and the Third Party Advisor are operated as wholly independent entities, the IBs have no contractual, marketing, compensation or other arrangement or relationship with the Third Party Advisor and the IB has no authority to deviate from the Third Party Advisor's recommendations, the IB generally need not also register as a CTA. However, where the IB's activities with respect to a Third Party Advisor would require the IB also to register as a CTA, it would further be required to provide a disclosure document in accordance with Commission Rule 4.31 and Advisory 86-3. |
|
| 95-65 ; Rule 1.17, CEAct Section (c)(5)(iii);; No-Action Professional traders and market makers in options meeting certain conditions may qualify for a reduction in the 4% short option value charge, upon approval by a designated self-regulatory organization |
|
| 95-104; ; 1a(11);; No-Action Letter of Off-Exchange Task Force confirms that certain contractual arrangements for the delivery of live hogs proposed to be offered by an agricultural cooperative are not futures or options contracts under the Commodity Exchange Act and Commission regulations thereunder. |
|
| 95-67 ; CEAct Section 4m(1);; No-Action The Division of Trading and Markets would not recommend that the CFTC take enforcement action against any registered investment adviser for failing to register as a CTA or CPO, when the requirement to register with eh CFTC is based solely upon the IA's providing investment advice to or exercising investment discretion on behalf of customers with respect to Chicago Mercantile Exchange foreign currency interests; or any registered investment company if such investment company does not register as a CPO when the requirement to register with the CFTC is based solely upon the ICs operating a collective investment vehicle that trades in CME foreign currency interests. This position, however, would not relieve registered investment advisors from the requirement to register as CPOs if they engaged in operating a commodity pool, and is subject to the condition that such persons claiming relief under this letter do not hold themselves out generally to the public as CTAs or CPOs |
|
| 95-79 ; CEAct Section 4m(1);; No-Action Floor brokers who are also registered as associated persons of a commodity pool operator need not register as commodity trading advisers in connection with advice they are to render to a fund the CPO operates. |
|
| 95-78; ; CEAct Section 1a(5);; No-Action A registered CTA is not acting as a CTA to a fund for which it serves as an investment adviser and provides only securities advice |
|
| 95-66 ; Rule 4.7(a)(1)(ii)(B)(2)(xi);; No-Action A no-action position was taken with respect to the 10% investment restriction in Rule 4.7 where a Rule 4.12(b) pool claiming exemption under Rule 4.7 ("Pool A") had as a participant another Rule 4.12(b) pool ("Pool B"), and Pool B had several non-QEP participants and more than 10% of its assets invested in Pool A. The Division also confirmed that, notwithstanding the conversion of Pool A from a Rule 4.12(b) pool to a Rule 4.7 exempt pool, Pool B could continue to multiply its investment in Pool A by 10% for purposes of determining Pool B's eligibility for exemption under Rule 4.12(b), based on pool A's representation that its commodity interest trading would continue to conform to the provisions of Rule 4.12(b), subsequent to Pool A's claim of exemption under Rule 4.7 |
|
| 95-63 ; Rules 1.35 and 155.3;; No-Action A registered investment advisor who is a limited partner of an FCM, and who is not involved in the operations and management of the FCM, may bunch customer accounts orders and FCM employee benefit account orders in which the investment advisor may have a minimal interest, for execution by and clearing through the FCM under limited circumstances |
|
| 95-69; ; Rule 4.7(a)(2)(iii);; No-Action The Division of Trading and Markets granted a registered CPO a 45-day extension in which to comply with the annual report requirements of Rule 4.7(a)(2)(iii) where, among other things, Rule 4.7 pools traded through investments in other funds and participants could redeem their interests in the Rule 4.7 pools at least quarterly with 60 days notice. |
|
| 95-77 ; CEAct Section 4m(1), Rules 4.5 and 4.14(a)(8);; No-Action The directors and the investment adviser of a fund, organized under the laws of Puerto Rico, need not register as CPOs and as a CTA, respectively, where (1) at least seventy-five percent of the directors of the fund will have their principal residences in Puerto Rico; (2) shares of the fund will be sold solely to persons who have their principal residences or places of business in Puerto Rico; (3) the fund is registered as an investment company under the Puerto Rico Investment Companies Act and, thus, is exempt from registration as an investment company under the Investment Company Act of 1940; (4) the fund will be operated in a manner consistent with Rule 4.5(c)(2); and (5) the investment adviser, which is registered under the Investment Advisers Act of 1940, will comply with the requirements of Rule 4.14(a)(8) with respect to the manner in which commodity interest trading advice is rendered to the fund |