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
04/15/2002	02-45 ; Rule 4.22(f)(1);; No-Action A Commodity Pool Operator that operates several 4.7 "fund-of-fund" pools requested an extension of time to file the annual report until August 31, 2002. The request was denied as the Division staff noted that the benefits of providing an audited financial report were outweighed by the need for pool participants to obtain financial information in a timely manner so that they may make informed investment decisions. Thus, delaying delivery of an annual report until August 31 - five months after the normal deadline - outweighs the advantage of having the annual report certified, in light of the CPO qualifying to file unaudited annual reports due to the 4.7 status of the pools.
04/10/2002	02-42 ; Rule 4.22(f)(1);; No-Action After discovering its error, in interpretation, a pool which had interpreted the "Dear CPO Letter" to provide automatic relief from filing an annual report to pools with only a few months of trading requested a 30 day extension to file their certified annual report for 2002.
04/10/2002	02-41 ; Rule 4.22(f)(1);; No-Action A pool comprised of one (1) participant, whose investors included the general partner and relatives and close friends of the general partner; in liquidation and not currently trading or planning to do any trading in futures or options on futures; operating pursuant to a Rule 4.7 exemption; and, submitted statements in support of an exemption from filing a financial statement from each of the participants is granted relief from filing a financial report of 2001.
04/09/2002	02-44 ; Section 4m(1);; No-Action The Division of Trading and Markets issued an interpretation that the developer of an interactive Internet website would not be required to register as a CTA, where the interactive website would be open exclusively to eligible contract participants (ECPs) and would generate suggestions regarding appropriate OTC energy-related financial instrument transactions based on variables submitted by such ECP bulk users of gas and electricity. ECP customers would not trade such instruments on the website, but could separately negotiate transactions with the website developer or with other ECPs. The Division noted that energy-related financial products are generally "exempt commodities" under the Commodity Futures Modernization Act of 2000, and that transactions in such instruments by ECPs not entered into on a trading facility are generally exempt from the provisions of the Commodity Exchange Act (except for anti-fraud and anti-manipulation provisions). The Division further cautioned the requester that visitors to a non-interactive version of the website should be informed that the OTC instruments discussed on the website are available only to ECPs.
04/09/2002	02-40 ; Rule 4.22(f)(1);; No-Action Where a pool has permanently ceased trading on December 20, 2001, and will be liquidated prior to April 15, 2002, relief was granted to provide a certified Annual Report, covering the period of January 1, 2001, to March 31, 2002, to all participants and filed with the Commission and National Futures Association.
04/09/2002	02-39 ; Rule 4.22(f)(1);; No-Action Where pool's are invested in collective investment vehicles that are eligible for relief under Rule 4.22(f)(2) of the Commission's regulations, and that, as a consequence of these investee funds also having 4.22(f)(2) relief to file their Annual Reports, until May 31, 2002, additional time is granted to prepare and file the report for the Pools. This need for additional time was confirmed in the independent public accountant's letter accompanying your letter.
04/05/2002	02-37 ; Rule 4.22(f)(1);; No-Action The Funds are subcompartments of a foreign based registered corporate investment structure. Further, because the Fund is a foreign-domiciled Fund the audit process includes a two-step verification process involving parties from the U.S., where the day-to-day activities are handled, and the foreign country, who are required to have sign-off of the audit. This added complexity when combined with the complete closure and de-registration of the pool operator necessitates an extension of April 30, 2002.
04/05/2002	02-36 ; Rule 4.22(f)(1);; No-Action Two pools invested in collective investment vehicles that are eligible for relief under Rule 4.22(f)(2) of the Commission's regulations, and that, as a consequence of these investee funds having relief to file their Annual Reports, until May 31, 2002, needed additional time to prepare and file their annual reports. This need for additional time, until June 28, 2002, is confirmed in the independent public accountant's letter accompanying their letter.
04/04/2002	02-43 ; Rule 3.1(a)(1);; No-Action The Division of Trading and Markets issued an interpretation that an employee of a Commission registrant who had limited check-signing privileges was not required to be listed as a principal of the registrant where the employee could sign checks drawn only on a holding account, the balance of which was sufficient only to pay the registrant's current bills. Moreover, the employee had no other duties or responsibilities that would require registration with the Commission, and the employee did not supervise any person registered, or required to be registered, with the Commission.
04/04/2002	02-35 ; Rule 4.22(c) & (d);; No-Action The CPO of a small fund that began trading late in the year requested exemption from filing an Annual Report for year ending December 2001. The participants submitted statements in support of the exemption. The exemption was based on the closely held nature of the fund and the fact that the 2002 Annual Report will cover the entire operating history of the fund.