CFTC Staff Letters

CFTC Staff Letters provides Letters from 2008 and later. For Letters published before 2008 visit the Letters Archive page.

PDF Description
PDF Image 09-36 Letter Type: Interpretative
Division: DCIO
Regulation Parts: 1a(5), 4.10
Tags: CPO, CTA
Issuance Date:
Description:

The Division of Clearing and Intermediary Oversight issued an interpretation that a charitable foundation would not be a commodity pool, and that its directors would not be commodity pool operators, if the foundation traded commodity interests. This interpretation was based on, among others, representations that: (1) no current or future donor to the foundation will be entitled to receive any of the assets, net earnings, income or profits of the foundation; and (2) no (other) charitable organization has any entitlement, on an annual or other basis, to a contribution from the foundation.


PDF Image 09-35 Letter Type: Exemption
Division: DCIO
Regulation Parts: 4.7(b)(3), 4.22
Tags: Annual Report, CPO, Exemptions, Pool Participant, Reporting
Issuance Date:
Description:

The CPO of a commodity pool with the majority of its assets embroiled in a bankruptcy requested relief from the ongoing reporting requirements under Part 4. The CPO filed an Annual Report for the Pool for the 2008 fiscal year, which contained information regarding the bankruptcy. DCIO granted relief pursuant to Regulations 140.93 and 4.12(a), but conditioned such relief on the following representations being made to the Commission and participants: the Pool has ceased trading; the pertinent facts regarding the bankruptcy and the frozen assets, including, but not limited to, the value of the assets, the percentage of the Pool’s NAV that the frozen assets represent, and the date upon which the bankruptcy petition was filed; the pertinent facts regarding the value of any assets presently being held by the Pool that have not been distributed to participants and the reasons for their retention; a representation that no additional fees will be deducted from the assets held by the Pool; the pertinent facts regarding the disposition of any income generated by the assets held by the Pool, if any; a representation regarding whether any assets have been distributed to participants; a representation regarding how payouts from the bankruptcy estate will be distributed to participants; i.e., whether distributions will be made as funds are received from the bankruptcy estate or whether payouts will be retained by the Pool until the final payout is received from the estate; a representation regarding any write down of the value of the claim against the bankruptcy estate; a representation regarding the distribution of assets on a pro rata basis to participants; and a representation that the financial information contained in the Pool’s liquidation report remains accurate. Additionally, DCIO required that the CPO make a final disclosure to the Commission and participants upon the final disbursement of the Pool’s assets.


PDF Image 09-34 Letter Type: Exemption
Division: DCIO
Regulation Parts: 4.22
Tags: Pool Participant, Reporting
Issuance Date:
Description:

The CPO of a pool in liquidation requested relief from the certification requirement under Commission Regulation 4.22 with respect to the pool’s final annual report for the period from January 1, 2009 through May 31, 2009. The CPO provided waivers from all of the participants in the pool agreeing to an uncertified final annual report. Pursuant to Commission Regulations 140.93 and 4.12(a), the DCIO granted the relief requested.


PDF Image 09-33 Letter Type: Exemption
Division: DCIO
Regulation Parts: 4.22
Tags: Pool Participant, Reporting
Issuance Date:
Description:

The CPO of two pools in a master-feeder structure requested stub period relief due to the liquidation of the feeder fund. Rather than file a 12-month annual report, the CPO requested permission to file an 18-month report. Pursuant to Commission Regulations 140.93 and 4.12(a), the Division granted the relief requested.


PDF Image 09-32 Letter Type: Exemption
Division: DCIO
Regulation Parts: 4.7
Tags: CPO, Exemption
Issuance Date:
Description:

The CPOs of two pools requested an extension of time for the filing of the pools’ 2008 annual reports beyond June 29, 2009 due to a delay in the receipt of financial statements from investee pools. DCIO determined that the interests of participants in receiving timely information outweighed the CPOs’ hardship and DENIED the request.


PDF Image 09-31 Letter Type: Exemption
Division: DCIO
Regulation Parts: 4.7(b)(3), 4.22
Tags: Annual Report, CPO, Exemptions, Pool Participant, Reporting
Issuance Date:
Description:

The CPO of a pool requested permission to file a 15-month annual report for the period from October 1, 2008 through December 31, 2009 due to a change in the pool’s fiscal year end. Pursuant to Commission Regulations 140.93 and 4.12(a), DCIO granted the relief requested.


PDF Image 09-30 Letter Type: Exemption
Division: DCIO
Regulation Parts: 4.22
Tags: Pool Participant, Reporting
Issuance Date:
Description:

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).


PDF Image 09-29 Letter Type: Exemption
Division: DCIO
Regulation Parts: 4.7(b)(3)
Tags: Annual Report, CPO, Exemptions
Issuance Date:
Description:

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).


PDF Image 09-28 Letter Type: Exemption
Division: DCIO
Regulation Parts: 4.7(b)(3)
Tags: Annual Report, CPO, Exemptions
Issuance Date:
Description:

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).


PDF Image 09-27 Letter Type: Interpretative
Division: DCIO
Regulation Parts: 1a(6), 4m
Tags: Board of Trade, CPO, CTA, Interstate
Issuance Date:
Description:

The Division of Clearing and Intermediary Oversight confirmed that a person registered as an investment adviser with the Securities and Exchange Commission: (1) would come within the CTA definition in Section 1a(6) of the Act if it offered as part of its comprehensive portfolio management a “managed futures account” component; and (2) would be required to register as a CTA with the Commission unless an exemption from registration was available to it. Based upon the facts presented to it, the Division concluded that none of the exemptions from CTA registration in Regulation 4.14 would be available to the investment adviser. The Division further offered that, assuming that none of the adviser’s customers would be in the nature of the collective investment vehicles identified in Section 4m(3) of the Act, the adviser might be able to claim the exemption from CTA registration available under that section.