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
07/15/1997	97-63 ; Section 4m(1) of the Act;; No-Action The Division of Trading and Markets confirmed that a news wire service which wished to provide a listing of daily estimated rates of return and information on the net asset values of publicly offered pools would be excluded from the definition of a commodity trading advisor and would not appear to be otherwise violating the Commodity Exchange Act or Commission rules in publishing the listing. The news service represented that it would offer the listing in a manner that was solely incidental to its general financial reporting services. The information contained in the listing would be calculated by the pools' commodity pool operators (CPOs) and any calculations would be done in a manner consistent with Commission rules. Only data from pools operated by registered CPOs would be used. The Division emphasized that the CPOs remained subject to all applicable regulations and could be subject to enforcement action if they submitted false or misleading information to the news service. The news service also affirmed that it would print certain disclaimers in connection with the listing, including statements that the information contained therein may be estimated and was not independently verified.
07/15/1997	97-62 ; Rule 4.21, Rule 4.23(a);; No-Action The Division of Trading and Markets (Division) granted an exemption from Rule 4.21 to the CPO and general partner of a commodity pool "master" fund with respect to delivering a Disclosure Document to prospective participants in the master fund. These prospective participants were two commodity pool "feeder" funds of which the CPO and general partner was also the CPO and general partner of the master fund. The Division also granted an exemption from Rule 4.23(a) concerning the location of the original books and records of the master fund.
07/14/1997	97-100 ; Section 4m(1) - CTA Registration;; No-Action The Division of Trading and Market provided a CTA registration no-action position for the sole investment manager of a series trust where: the investment manager is a registered investment adviser; the series trust is not offered or sold, directly or indirectly, to any United States person nor does the series trust accept capital contributions from any United States sources; all meetings and activities of the series trust's shareholders and officers are conducted outside of the United States; the investment manager intends to furnish commodity interest trading advice to the series trust pursuant to the criteria of Commission Rule 4.5(c)(2) and in a manner solely incidental to its provision of securities advice; and, the investment manager will not hold itself out to the public as a CTA.
07/09/1997	97-66 ; Rules 4.7(a)(2)(iv) and (b)(2)(ii);; No-Action A registered CPO and CTA was exempted from the books and records location requirements of Rules 4.7(a)(2)(iv) and (b)(2)(ii) such that the CPO/CTA may maintain the books and records of a pool containing United States persons as investors at the offshore offices of the pool's administrator. This relief is subject to the condition, among others, that the CPO/CTA will cooperate in any information sharing arrangements between the country where the books and records are to be kept and the United States.
07/02/1997	97-59; ; Rule 4.7(a)(2)(iv)&(b)(2)(ii);; No-Action The Division of Trading and Markets exempted a registered CPO and CTA from the location requirements of Rule 4.7(a)(2)(iv) and (b)(2)(ii) permitting it to maintain the original books and records specified by those rules at the main business office of the entity that performs administrative services for the CPO/CTA. The exemption is subject to the conditions that the registered CPO/CTA: (1) maintains copies of the books and records at its office; and (2) remains responsible for the maintenance of all required books and records, and for assuring their availability to the Commission, the National Futures Association and any other agency authorized to inspect such books and records.
07/02/1997	97-57 ; Rule 4.7(a);; No-Action The Division will not recommend that the Commission take any enforcement action against a registered CPO based solely upon: (1) its operation of a fund as an exempt pool under Rule 4.7(a) notwithstanding the participation in the fund by a principal of the fund's CTA who does not qualify as a QEP; or (2) its investment of more than ten percent of the fair markets value of the fund's assets in Rule 4.7(a) exempt pools. In addition, the Division will not recommend the Commission take any enforcement action against the CPO of any Rule 4.7(a) exempt pool in which the fund is or becomes a participant based solely upon the fund's investment of more than ten percent of the fair market value of its assets in the Rule 4.7(a) exempt pool.
07/01/1997	97-61; ; Rule 4.7(a);; No-Action The Division of Trading and Markets permitted a registered CPO to claim relief under Rule 4.7(a) with respect to Class B units of a limited liability company (LLC), notwithstanding the presence in the LLC of non QEP unitholders; the LLC may invest in exempt pools without regard to the ten percent limitation of Rule 4.7(a).
07/01/1997	97-60 ; ?4m(1), 4.7(a);; No-Action The Division of Trading and Markets took a no-action position regarding CPO registration relief for the sole general partner of two U.S. funds to be operated as Rule 4.7(a) pools where the CTA for both funds will also serve as the fund's CPO, the general partner and the CPO/CTA are affiliated companies, the general partner will limit its activities with regard to the two funds, and the CPO/CTA and the general partner accepted joint and several liability with each other for any violation of the Act or Commission regulations thereunder applicable to CPOs in connection with the two funds. In addition, the Division took a no-action position such that the CPO/CTA for the two U.S. funds, which also served as the CPO for an offshore fund organized as a Rule 4.7(a) pool, could claim exempt status under Rule 4.7(a) for all three funds despite the participation of six non-QEP individuals in the three funds, where the six non-QEPs are high level employees and sophisticated investors.
06/26/1997	97-56 ; ?4m(1);; No-Action The Division of Trading and Markets granted CPO registration "no-action" relief to the sole general partner of a limited partnership that will trade commodity interests for speculative purposes. The partnership has four limited partners: two U.S. citizens, a corporation organized under the laws of France, and a family trust. The four limited partners have all had long-standing business and/or personal relationships with the general partners, and each of the limited partners (in the case of the trust, the trustee) is a "qualified eligible participant" as defined in Rule 4.7(a). The aggregate subscribed capital of the Partnership will be $275,000.
06/24/1997	97-53 ; Section 4m(1); Rule 4.7(a);; No-Action The Division of Trading and Markets took a "no-action" position relieving a state-regulated insurance company and two trust companies from CPO and CTA registration requirements in connection with an estate planning device consisting of insurance contracts held in trust, the premium payments for which are invested in an insurance company separate account, a subaccount (the "LP Subaccount") of which may invest in commodity pools. The Division further gave "no-action" relief to a registered CPO affiliated with one of the trust companies, permitting such CPO to claim exemption under Rule 4.7(a) with respect to the LP Subaccount, notwithstanding that the trusts contributing funds to the LP Subaccount are not QEPs. Finally, the Division gave "no-action" relief to such CPO and the operator of any Rule 4.7 exempt pool in which the LP Subaccount invests from compliance with the ten percent investment limitation in Rule 4.7(a)(1)(ii)(B)(2)(xi).