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
11/30/1999	99-53 ; Rule 4.7(a);; No-Action The Division of Trading and Markets provided exemptive relief to a registered CPO that permits the CPO to treat four non-QEP investors as if they satisfy the QEP criteria of Rule 4.7(a). The investors are either current or former managing directors of the CPO, have substantial experience in the financial services industry, are accredited investors as that term is defined in Rule 501(a)(6) under Securities Act of 1933 and consent to being treated as QEPs.
11/30/1999	99-52 ; Rule 4.7(a);; No-Action The Division of Trading and Markets provided exemptive relief to a registered CPO that permits the CPO to treat a non-QEP employee as if he satisfies the QEP criteria of Rule 4.7(a). The employee is an analyst and a trader who assists the managing member of the CPO in the analysis of investment opportunities for and management of the Fund's investment portfolio. The employee has been employed for over eight years in the financial services industry, is an accredited investor as that term is defined in Rule 501 (a)(6) under the Securities Act of 1933 and consents to being treated as a QEP.
11/30/1999	99-50 ; Rule 4.7;; No-Action CPO permitted to treat an employee as a QEP where the employee: (1) is employed by the CPO as a senior analyst "with responsibility to review all portfolios purchases" for the Rule 4.7 exempt pool; and (2) has been employed by the CPO for the preceding seven years.
11/30/1999	99-49 ; Rule 4.7;; No-Action CPO permitted to treat a trust as a QEP where, among other things, the grantor of the trust: (1) was the chief financial officer of a company owned by one of the four founding limited partners of the Rule 4.7 exempt pool; (2) had been responsible for evaluating and structuring that limited partner's investment in the pool; and (3) continued to oversee the performance of that investment.
11/30/1999	00-03 ; Rule 4.7(a);; No-Action The Division of Trading and Market permitted a registered CPO to continue to treat a pool established for the employees of the manager of a fund as if it satisfies the QEP criteria of Rule 4.7(a) in connection with the investment of the pool in the fund, notwithstanding the addition of another non-QEP employee of the pool.
11/30/1999	00-02 ; Rule 4.21 and 4.22(d);; No-Action The Division of Trading and Markets exempted a registered CPO from the requirement of Rule 4.21 that the CPO provide a Disclosure Document to the participants of a fund operated by the CPO and from the requirement in Rule 4.22(d) that the CPO distribute to the participants in the fund and file with the Commission a certified annual report for the fund. In lieu of preparing a separate Disclosure Document and an annual report for the fund, the CPO will provide the participants of the fund with the Disclosure Document and provide the participants in the fund -- and file with the Commission -- a certified annual report prepared in connection with another pool operated by the CPO in which the fund had invested substantially all of its assets.
11/30/1999	00-01 ; Rule 4.7(b) -- Exemptive Relief for CTA;; No-Action The Division of Trading and Markets provided exemptive relief to a registered CTA and investment adviser permitting it to treat a trust (Trust) established as part of a bankruptcy reorganization as a qualified eligible client. The CTA was seeking to trade commodity interest primarily in order to manage the interest rate and foreign currency exposure arising from the securities investments of the Trust. Because of the unique characteristics of the Trust, it did not fit squarely within the definition of QEC set forth in either Rule 4.7(b)(1)(ii)(B)(2)(viii) or 4.7(b)(1)(ii)(B)(2)(xi).
11/29/1999	00-43 ; Section 4m(1);; No-Action The Division of Trading and Markets took a CPO registration "no-action" position with respect to a limited liability company (formed by a consortium of financial institutions) which became the general partner of two of the elements of a severely distressed major hedge fund system in order to provide a conduit for a substantial cash infusion by the consortium to enable the orderly liquidation of the hedge fund system's remaining market positions. The initial request for confirmation that CPO registration was not required was denied (Staff Letter 99-23) and that denial was subsequently reaffirmed. Upon reconsideration, in light of the disclosure of additional facts (including the redemption of all investors other than the limited liability company, and the imminent completion of the liquidation process), the Division determined that a no-action position was appropriate.
11/16/1999	99-51 ; Rule 4.21 and 4.22;; No-Action The Division of Trading and Markets (1) confirmed the continued applicability of an existing exemption from the disclosure and reporting requirements of Rules 4.21 and 4.22 with respect to the operation by two affiliated registered CPOs of certain investee pools operated solely for the purpose of facilitating the trading of investor pools operated by the same CPOs; and (2) extended the exemptive relief to cover the operation of certain additional investee pools made part of the structure that was the subject of the original exemption.
11/15/1999	99-57 ; Rule 4.23(a);; No-Action The Division of Trading and Markets exempted a CPO from the requirement of Rule 4.23 that a CPO must maintain certain books and records in accordance with Rule 1.31 at its main business office. The exemption is subject to the conditions that: (1) the CPO will notify the Division if the location of any original books and records changes; (2) the CPO remains responsible for ensuring that all books and records required by Rule 4.23 are maintained in accordance with Rule 1.31 and for assuring their availability to the Commission, the NFA, or any other agency authorized to review such books and records in accordance with Commission regulations; (3) within 48 hours after a request by a representative of the foregoing, the CPO will obtain the original books and records and provide them for inspection at its main business office; (4) the CPO must disclose in its Disclosure Document where all Commission required books and records are kept; and (5) the CPO remains responsible for compliance with Rule 4.23.