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
03-28 PDF Image; Section 1a(12) and (23) of the CEAct and Commission Rules 1.3(g) and (mm), 1.57 and 30.10;; No-Action
The Division of Clearing and Intermediary Oversight issued a no-action letter to permit a foreign entity that has previously been granted exemption from registration by a Commission order issued under Rule 30.10 in connection with foreign futures and options to also act as an IB with respect to trades executed on U.S. markets for U.S. institutional customers without registering as an IB. The foreign entity is an affiliate of a U.S. FCM to which it would introduce business and the relief was conditioned upon the U.S. FCM acknowledging joint and several liability for the foreign entity's handling of orders for U.S. institutional customers for trading on U.S. markets.
03-30 PDF Image; Rule 155.4(a);; No-Action
The Division of Clearing and Intermediary Oversight denied relief to an Introducing Broker who wished to bunch proprietary orders with customer orders. The Division stated that 155.4(a) mandates that IBs use of "customer first" principle, therefore the IB's account must not be bunched with customer accounts.
03-29 PDF Image; Rule 155.4(a);; No-Action
The Division of Clearing and Intermediary Oversight denied relief to an Introducing Broker who wished to bunch proprietary orders with customer orders. The IB planned to use average pricing to allocate orders after execution. The Division stated that 155.4(a) mandates the Introducing Brokers use a "customer first" principle, therefore the IB's accounts must not be bunched with customer accounts.
03-27 PDF Image; Section 2(a);; No-Action
EDX London Exchange's request for recognition as Successor-in-Interest to OM London Exchange Limited under the 1996 No-Action Letter regarding the offer and sale of futures contracts on the OMX index in the United States.
03-25 PDF Image; Rule 4.35;; No-Action
A Commodity Trading Advisor, which is also registered as an Investment Advisor, requested relief concerning its presentation of past performance in accordance with Rule 4.35. The Division of Clearing and Intermediary Oversight determined not to recommend that the Commission commence any enforcement action against the CTA based solely upon its failure to present its past performance information pursuant to the specific requirements of Rule 4.35, provided that it remains in compliance with applicable requirements under securities laws and its commodity interest trading continues to represent less than 1% of its assets under management.
03-26 PDF Image; 1a(6) of the CEAct; Commission rules 1.33(bb), 4.14(a)(9) and 166.3;; No-Action
The Division of Clearing and Intermediary Oversight has determined that, where an associated person (AP) of an introducing broker (IB) creates a trading program that generates trading signals, and solicits clients solely to execute a "letter of direction" that provides that the IB should execute trades by following the program's signals "as close as reasonably possible," registration as a commodity trading advisor (CTA) is required of either the IB or the AP. DCIO stated that this scenario constituted managing a client's trading under an informal arrangement and, therefore, exemption from CTA registration under rule 4.14(a)(9) was not applicable. DCIO further stated that, if the IB registered as a CT, the AP would not also be required to register as a CTA in his individual capacity.
03-24 PDF Image; Regulation 4.7(b)(2) and 4.7(b)(3);; No-Action
The Division of Clearing and Intermediary Oversight provided exemptive relief to a registered CPO from the periodic and annual reporting requirements of Rules 4.7(b)(2) and 4.7(b)(3) in connection with its operation of a master fund that has as its sole participants a feeder fund that is operated by the CPO and a feeder fund that is operated by CPOs with the same ownership and management. This relief is subject to, among other things: (1) the CPOs retaining identical management and ownership; (2) participation in the Master Fund being limited to the Feeder Funds, and any fund for which the CPOs are the sole CPOs, and (3) the annual reports of the Feeder Funds containing financial statements that include, among other information, the fees associated with the operation of the applicable Master Fund.
03-23 PDF Image; Regulation 4.7(b)(1), 4.7(b)(2) and 4.7(b)(3);; No-Action
The Division of Clearing and Intermediary Oversight provided exemptive relief to a registered CPO from the disclosure and periodic and annual reporting requirements of Rules 4.7(b)(1), 4.7(b)(2) and 4.7(b)(3) in connection with its operation of a master fund that has as its sole participants feeder funds that are operated by the CPO or another CPO with the same ownership and management. This relief is subject to, among other things: (1) the CPOs retaining identical management and ownership; (2) participation in the Master Fund being limited to the Feeder Funds, and any fund for which the CPOs are the sole CPOs; and (3) the annual reports of the Feeder Funds containing financial statements that include, among other information, the fees associated with the operation of the applicable Master Fund.
03-19 PDF Image; Section 4d, Rule 1.3(mm);; No-Action
The Division of Clearing and Intermediary Oversight denied relief from registration as an introducing broker as the requestor would be directing potential customers to Commission registrants for a fee.
03-22 PDF Image; Regulation 4.7(b)(1), 4.7(b)(2) and 4.7(b)(3);; No-Action
The Division of Clearing and Intermediary Oversight provided exemptive relief to a registered CPO from the periodic and annual reporting requirements of Rules 4.7(b)(1), 4.7(b)(2) and 4.7(b)(3) in connection with its operation of a master fund that has as its sole participants feeder funds that are operated by the CPO. This relief is subject to, among other things: (1) participation in the master fund being limited to the feeder funds, and any fund for which the CPO is the sole CPO; and (2) the annual reports of the feeder fund containing financial statement that include, among other information, the fees associated with the operation of the master fund.