Relief granted to a registered CTA from the disclosure document requirements in connection with the providing of commodity trading advice where (1) the CTA is organized and domiciled outside of the United States and (2) the sole client of the CTA is an offshore corporation with no U.S. persons as investors or directors.
The Division of Trading and Markets granted a registered CPO an exemption from Rule 4.7(a)(2)(iv) with respect to the CPO's responsibility to maintain original books and records at his main business office in connection with the operation of an offshore commodity pool, subject to the condition that, within 72 hours after a request by a duly qualified representative of the Commission, originals of the Fund's books and records will be made available to the Commission at a place locate din the United States as specified by the Commission representative.
The Division of Trading and Markets granted a registered CPO a forty-five day extension in which to comply with the annual report requirement of Rule 4.7(a)(2)(iii) where, among other things: (1) the Rule 4.7 pool was a "fund of funds" and principally is a securities fund; (2) investors would receive quarterly reports in a timely manner; and (3) investors would receive certified annual reports at least three months prior to the date on which a redemption notice is due.
The Division of Trading and Markets granted a registered CPO a forty-five day extension of time in which to comply with the annual report requirements of Rule 4.7(a)(2)(iii), where the pool's investors are authorized to withdraw from the pool at the end of any calendar month upon a least thirty-five days prior written notice to the pool. The relief was subject to the condition that the CPO inform the pool's investors about the effects of the relief.
Rules 4.35(b), 4.10(f);
The Division of Trading and Markets declined to provide relief from the past performance disclosure requirements of Rule 4.35(b) for ten accounts directed by the sole principal of a registered CTA pursuant to five different trading systems developed and sold by an unrelated, third party trading advisor. The Division reasoned that the principal was directing accounts within the meaning and intent of Rule 4.10(f) once he obtained a power of attorney that allowed him to enter trades on behalf of clients without first obtaining a client's permission notwithstanding the fact that this trading authority was limited to entering trades indicated by a third party trading system independently chosen by the client. The Division reasoned that the clients would not necessarily be aware of the trades being entered on their behalf but would receive the protections afforded by the Commission's past performance disclosure rules only if the party directing the accounts provided such disclosure. The third party advisor who developed the systems was under no obligation pursuant to Rule 4.31 to disclose past performance for the systems since he did not direct or guide accounts.
The Division of Trading and Markets granted a registered CPO an exemption from Rule 4.7(a)(2) (iv) with respect to the CPO's responsibility to maintain original books and records at its main business office in connection with the operation of five offshore commodity pools, subject to the condition that, within 72 hours after a request by a duly qualified representative of the Commission, originals of the Funds' books and records will be made available to the Commission at a place located in the United States as specified by the Commission representative. The CPO did not seek to claim relief under the Division's recent Advisory regarding, among other things, the located of the books and records of offshore commodity pools because the Funds maintain their original books and records offshore to comply with requirements of the Central Bank of Ireland, not with Internal Revenue Service requirements.
The Division of Trading and Markets denied a registered CPO relief from the periodic reporting requirements of Rule 4.7(a) (2) (ii) , where the CPO made no representations sufficient to warrant relief from compliance with those requirements. Further, in light of the CPO's failure to comply with the annual reporting requirements of Rule 4.7(a) (2) (iii) and the filing requirements of Rule 4.7(a)(3), the Division was unable to grant any extension of time in which the CPO must distribute the statements required by Rule 4.7(a)(2)(ii). The CPO remains subject to the requirements that it: (1) prepare an d file annual reports by the previously extended deadline of May 1 of each year; and (2) prepare and distribute quarterly statements to pool participants within thirty calendar days after the end of the reporting period.
The Division of Trading and Markets permitted a trust fund to claim relief from the definition of a commodity pool under rule 4.10(d) (1). The trust was exempted from the definition of a commodity pool since it was established by a corporation as a pension plan for the sole shareholder of the corporation. The only contributor to the trust has been the corporation and the sole beneficiary of the trust will be the sole shareholder of the corporation,
The Division of Trading and Markets granted relief from the books and records location requirement of rule 4.7(b)(2)(ii) to rule 4.7(b) exempt commodity trading advisor. Certain books and records prepared in connection with the commodity trading advisor's activities concerning qualified eligible clients may be maintained at the offices of a commodity pool operator that provides operational support, including daily account reconciliation with commodity brokers, for the commodity trading advisor,
The Division of Trading and Markets denied a commodity pool operator's request for relief from disclosing information about a principal in the disclosure document for certain pools where that principal did not participate in the trading, marketing, or other activities related to those pools. In addition, the Division of Trading and Markets advised the pool operator that an employee authorized to make trading decisions on behalf of one of the commodity pools operated by the pool operator and certain client accounts was a principal as specified in rule 4.10(e).
The Division of Trading and Markets granted an exemption to a commodity pool operator (CPO) under rule 4.7 allowing the CPO to file a notice of claim for exemption on behalf of a limited partnership when only the Class B unit holders of the limited partnership were qualified eligible participants (QEPs). The relief was based upon, among others, representations that: (1) the Class B unit holders would trade commodity interests solely through participation in other commodity pools; and (2) the Class A unit holders (a) were not permitted to trade commodity interests and (b) would not share in profits or be responsible for losses attributable to such trading. The relief was conditioned upon prohibiting non-QEPs from purchasing Class B units and notifying the Class A unit holders of the Class B unit holders' exemption and proposed activities,
Rule 4.21, 4.22(a) and (b), 4.24, 4.25, 4.26;
The Division of Trading Markets granted a request by a registered CPO and CTA for relief from the requirements of rules 4.21, 4.22(a) and (b), 4.24, 4.25 and 4.26 with regard to a commodity pool that invests primarily in United States securities and previously has been operated pursuant to the criteria of rule 4.12(b). The pool's limited partners are principals and employees of the CPO/CTA or the pool's co-investment manager, and certain members of their immediate families. They have received the documents required under rule 4.12(b) and will have access to the pool's books and records. In addition, the CPO/CTA will: (1) notify each limited partner that the pool is operated pursuant to exemptive relief granted by the Division; (2) explain the nature and purpose of such exemption; (3) obtain from each limited partner its written acknowledgment that it does not object to the pool's operation pursuant to exemptive relief; and (4) cause any limited partner who ceases to be a principal or employee, and any limited partner who is a family member of such principal or employee, to redeem or transfer its interests in the pool,