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
03/29/2001	01-25 ; Rule 4.22(c) and (d);; No-Action The Accountant preparing the Annual Report on behalf of a pool requested a short extension of time to file the Annual Report in order to make some minor but important corrections to the accounting for certain partner distributions. The request was granted.
03/29/2001	01-24 ; Rule 4.22(c) and (d);; No-Action The CPO of a pool, which anticipates cessation prior to May 2001, requested exemption from the requirement of Rule 4.22(c) and (d) that the pool's 2000 Annual Report be certified and distributed, and that the CPO be allowed to file a certified Annual Report for the 17-month period from January 2000 through May 31, 2001. The request was granted.
03/29/2001	01-23 ; Rule 4.22(c) and (d).;; No-Action The CPO of a small fund requested exemption from filing a certified Annual Report for year ending December 2000. The participants submitted statements in support of the exemption. The exemption was granted based on the size of the fund, the closely held nature of the fund and the fund was not soliciting or accepting new participants.
03/28/2001	01-22 ; 4.22(f)(1);; No-Action The CPO of a pool that could not obtain an Annual Report from an investee fund until the end of the reporting period requested an extension of time to file its Annual Report. That extension was granted based upon the determination that the representations made in the request and that of the accountant established the type of unusual circumstances warranting relief under 4.22(f)(1).
03/26/2001	01-20 ; Regulation 1.57(a)(1);; No-Action The Division of Trading and Markets adopted a no-action position with respect to a guaranteed introducing broker (GIB) and the guarantor futures commission merchant (GFCM) notwithstanding the fact that the GFCM would not be carrying and clearing all of the GIB's trades. Commission Rule 1.57 generally requires the GFCM to carry all of the GIB's customer accounts. In reaching this position, the Division noted, inter alia, that the customers being referred are Eligible Contract Participants, that the GFCM had sufficient adjusted net capital and excess net capital to meet all of the GIB's obligations, and that the GFCM agreed to be jointly and severally liable for all obligations under the Commodity Exchange Act and the regulations thereunder with respect to the solicitation of, and transactions involving, all customer accounts of the GIB.
03/24/2001	01-49 ; Section 5, 5a and 5c of the Act;; No-Action The Division of Trading and Markets (Division) responded to a request for a no-action position from the subsidiary of a national securities association (Subsidiary). The Division stated that it would not reject any application seeking designation as a contract market (DCM) or registration as a derivatives transaction execution facility (DTF) solely on the basis that such application identifies Subsidiary as its delegatee of relevant SRO functions, despite provisions in the Commodity Futures Modernization Act that these functions can only be delegated to a registered futures association or another registered entity and the fact that the Subsidiary is neither. The Division's position is based upon Subsidiary's experience as a self-regulatory organization in the securities market and its express commitment to apply for resignation as a futures association. The Division also confirmed that if a DCM or DTF application otherwise comports with the requirements for designation or registration, but the review of Subsidiary's application for registration as a futures association has not yet been completed, the Division will grant appropriate no-action relief to the DCM or DTF, provided Subsidiary's application contains all of the relevant information required by Section 17 of the Act and Part 170 of the Commission's rules.
03/23/2001	01-21 ; Regulation 4.13(a)(1);; No-Action The Division of Trading and Markets confirmed that the manager of the Feeder Fund, who has previously filed an exemption from registration as a CPO pursuant to Rule 4.13(a)(1), may continue to rely upon the exemption, notwithstanding his serving as the general partner of a second commodity pool, the Proposed Fund. The Feeder Fund and the Proposed Fund both invest substantially all of their assets in the Investment Fund. The funds were formed as an investment vehicle for partners and key employees of a law firm. The participants in the Feeder Fund and the Proposed Fund are all partners or key employees of the firm. The position was based upon the fact that the Proposed Fund is being created solely to minimize adverse tax treatment of partners and key employees subject to U.K. tax laws and essentially will function exactly the same as the Feeder Fund, only in a limited partnership structure.
03/23/2001	01-19 ; Regulations 4.7(b)(2) and 4.7(b)(3);; No-Action The Division of Trading and Markets 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 three feeder funds that are also operated by the CPO. The relief is subject to the conditions that: (i) the CPO remain the CPO of the Master Fund and the Feeder Funds; (ii) participation in the Master Fund is limited to the three Feeders Funds; and (iii) the annual report of the Feeder Funds contain financial statements that include, among other information, the fees associated with the operation of the Master Fund.
03/19/2001	01-17 ; Rules 4.22(c) & (d);; No-Action The CPO of a pool that commenced trading September 1, 2000, requested exemption from the requirement of Rule 4.22(d) that the pool's 2000 Annual Report be audited. The participants supported the request. That exemption was granted upon condition that: (1) an unaudited 2000 Annual Report be provided to the participants; and (2) the audited 2001 report will include the 2000 data.
03/16/2001	01-16 ; Rules 4.22(c) & (d);; No-Action The CPO of a small fund requested exemption from filing a certified Annual Report for year ending December 2000. The participants submitted statements in support of the exemption. The exemption was granted based on the size of the fund, the closely held nature of the fund, and the fund was not soliciting or accepting new participants.