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
04/05/1999	99-16 ; 4.22 (c) & (d);; No-Action The CPO of a pool, which commenced operations on December 29, 1998, requested exemption from the requirement of Rule 4.22(d) that the pool's 1998 Annual Report be audited. The participants agreed in the Limited Liability Company Agreement that statements would be audited starting in 1999. Due to the extremely short period during 1998 that the fund was in operation, the exemption was granted upon condition that the audited 1999 report will include 1998 data.
03/26/1999	99-15 ; 4.22(c) & (d);; No-Action The CPO of a small pool which did not engage in any commodity interest trading during the pool's fiscal year ending December 31, 1998, requested exemption from the requirement of Rule 4.22 (d) that the pool's 1998 Annual Report be audited. The exemption was granted upon condition that: (1) an unaudited 1998 annual report be provided to the participants and (2) the audited 1999 report will include 1998 data.
03/23/1999	99-18 ; Rule 155.3(c)(3);; No-Action The Commission denied exemptive relief to a registered FCM from the order ticket delivery requirements of Rule 155.3(c)(3), which provides that an FCM handling the account of an AP of another FCM must send to the other FCM order tickets relating to the AP's account. Although the requester represented that the AP wished to keep his trades confidential from fellow employees, and that it would not be economically feasible for the FCM to execute the AP's trades lacking an exemption from the order ticket delivery requirement, the Commission determined that the requester did not articulate an adequate justification for an exemption from Rule 155.3(c)(3) in light of the important customer protection issues at stake.
03/17/1999	99-12 ; 4.22(c) & (d);; No-Action The CPO of a small pool which started in late 1998 requested exemption from the requirement of rule 4.22(d) that the pool's 1998 Annual Report be audited. The participants supported the request. The exemption was granted upon condition that (1) an unaudited 1998 annual report be provided to the participants and (2) the audited 1999 report will include 1998 data.
03/12/1999	99-13 ; Advisory 93-13;; No-Action An account funded at 90 percent or greater is not materially different from an account which is funded at 100 percent and thus may be treated as part of the fully funded subset method discussed in Commission Advisory 93-13.
03/03/1999	99-14 ; Section 4 of the Act;; No-Action In light of the Commission's ongoing rulemaking process concerning automated trading systems, the Division of Trading and Markets (Division) declined to extend the Division's no-action letter of February 29, 1996, concerning the placement of Eurex electronic terminals in the U.S. to allow the trading of Euribor and Euro-Libor futures and option contracts on Eurex's U.S.-located terminals.
02/24/1999	99-11 ; Section 4(b);; No-Action The Division of Trading and Markets (Division) determined not to issue a no-action letter to a member of Eurex (formerly Deutsche Terminbose or DTB) who sought to place a Eurex computer terminal in its office in the U.S. prior to the Commission's completion of its rulemaking process regarding the placement of automated trading systems in the U.S. of boards of trade whose primary locus of operation is outside the U.S. The Division noted that in light of the Commission's recent concept release concerning usage of these automated trading systems in the U.S., the Division issued a letter to the DTB dated June 3, 1998, that was intended to maintain the status quo and to prevent new Eurex/DTB members from using Eurex/DTB terminals in the U.S. until the Commission further addresses these issues. The Division informed the Eurex member that it would still be able to trade Eurex products as a customer though an FCM or a foreign firm that is exempt from FCM registration pursuant to Commission Rule 30.10 that currently operates a Eurex terminal.
02/11/1999	99-19 ; Rule 4.21;; No-Action The Division of Trading and Markets granted an exemption from the Disclosure Document delivery requirement of Rule 4.21 to "X," a registered CPO of two commodity pool "master" funds where participants in the funds were commodity pool "feeder" funds of which "X" also served as the CPO.
02/11/1999	99-10 ; Rule 4.14(a)(6);; No-Action An introducing broker (IB) may rely on the exemption from commodity advisor registration in Rule 4.14(a)(6) where: (1) the IB directed trading in one of its twenty-three customer accounts; (2) the IB provided advice to its other customers solely through telephone discussions about current and publicly available market information; (3) the IB did not employ any advisory media such as hotline or computer program in connection with providing advice; and (4) no special facts or circumstances were present.
02/04/1999	99-09 ; Division of Trading and Markets' Financial and Segregation Interpretation No. 4-1;; No-Action SROs will no longer be required to file monthly reports of actions taken concerning subordinated loan agreements provided they maintain complete records available for Commission review.