CFTC Staff Letters

The CPO requested relief from the requirement in Regulation 4.22(d) that the pool’s Annual Report be certified. The Pool began operations in December of 2007. From January 1, 2008 until December of 2008, the Pool had only 2 investors, one of whom is the CPO. In December of 2008, the Pool accepted another non-proprietary investor, bringing the total number of Pool participants as of December 31, 2008 to 3. The Pool’s total net asset value as of December 31, 2008, was approximately $1xx,xxx, roughly 42% of which was owned by the CPO. The CPO submitted waivers executed by the Pool’s 3 participants evidencing their consent to the exemption from the certified Annual Report requirement. Pursuant to the authority granted by Regulations 140.93 and 4.12(a), DCIO granted the relief subject to the condition that the CPO file and distribute a certified Annual Report for the period from January 1, 2008 through December 31, 2009.

The CPO of commodity pool requested relief to use IFRS in lieu of US GAAP. DCIO granted relief pursuant to Commission Regulations 140.93 and 4.12(a).

The CPO of a commodity pool that commenced trading in October of 2008 requested relief from Commission Regulation 4.22 (d), which requires certification of the pool’s annual report. The pool had, as of the close of its fiscal year, $1,XXX,XXX in total assets and nine participants. The CPO submitted signed waivers from each of the pool’s participants consenting to the exemption from the certified annual relief requirement. DCIO granted relief pursuant to Commission Regulations 140.93 and 4.12(a), but conditioned such relief upon the future filing of a certified annual report for the period of October 1, 2008 through December 31, 2009 in accordance with Regulations 4.22(c) and (d).

The CPO of a master fund and two feeder funds whose sole investment was in the master fund requested an interpretation or exemption with respect to the due date of the final annual report for one of the feeder funds that ceased operation as of June 30, 2008. Participants in the feeder fund that was ceasing operation exchanged their units for units in the second feeder fund. The CPO proposed that, rather than filing an annual report by September 30, 2008 for the feeder fund ceasing operation, it be permitted to file the report by March 31, 2009. The CPO claimed that the participants were not redeeming their investments, and represented further that there would be an additional cost in preparing a mid-year report because additional information from the master fund as of June 30, 2008 would be necessary. DCIO clarified that the fund did, in fact, cease operation as of June 30, 2008 and therefore its report was due within 90 days, but provided an extension of the report’s due date to March 31, 2009 on the basis that participants were transferred into a nearly identical investment and would continue to receive periodic reports on the value of their investment prior to the issuance of the fund’s final annual report.

The CPO of three commodity pools requested relief to use IFRS in lieu of US GAAP. DCIO granted relief pursuant to Commission Regulations 140.93 and 4.12(a).

The CPO of a proprietary commodity pool (consisting only of the CPO and the CPO’s mother) requested relief from Commission Regulation 4.22(d), which requires certification of the pool’s annual report. The pool had, as of the close of its fiscal year, only $4XX,XXX in total assets, and the pool’s participants had received monthly account statements prepared by an unassociated third-party accounting firm. The CPO submitted signed waivers from each of the pool’s participants consenting to the exemption from the certified annual relief requirement. DCIO granted relief pursuant to Commission Regulations 140.93 and 4.12(a).

The CPO of commodity pool requested relief to use IFRS in lieu of US GAAP. DCIO granted relief pursuant to Commission Regulations 140.93 and 4.12(a).

The CPO of commodity pool requested relief to use IFRS in lieu of US GAAP. DCIO granted relief pursuant to Commission Regulations 140.93 and 4.12(a).

The CPO of two commodity pools requested relief to use IFRS in lieu of US GAAP. DCIO granted relief pursuant to Commission Regulations 140.93 and 4.12(a).

The CPO of a commodity pool operated pursuant to relief under Regulation 4.12 requested relief from the requirement that an Annual Report be filed within 90-days of the permanent cessation of trading as well as relief from the requirement that an Annual Report be filed within 90-days of the end of the Pool’s fiscal year. Additionally, the CPO requested relief from the certification requirement. Instead of the foregoing, the CPO proposed that it be permitted to file a 15-month Annual Report for the period from January 1, 2008 through March 31, 2009 and that this uncertified Annual Report be considered its final Annual Report for the Pool despite the fact that the Pool remains in possession of an illiquid asset, which constitutes less than one percent of the Pool’s net asset value. DCIO granted relief pursuant to Commission Regulations 140.93 and 4.12(a). The relief was conditioned on the CPO providing certain representations to participants including that the Pool has permanently ceased trading, that the CPO is no longer assessing fees against the Pool, a description of the illiquid asset, a description of the disposition of any income generated by the asset, and a representation that funds will be distributed on a pro rata basis. DCIO also required that the CPO file and distribute a final disclosure upon the disposition of the asset stating that the Pool has finally disposed of the asset.