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All Letters

Date
All Letters
11/30/1999
00-01 PDF Image; Rule 4.7(b) -- Exemptive Relief for CTA; Exemption
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).
11/30/1999
00-02 PDF Image; Rule 4.21 and 4.22(d); Exemption
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
00-03 PDF Image; Rule 4.7(a); Exemption
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.
12/23/1999
00-04 PDF Image; Rule 4.7; Exemption
The Division of Trading and Markets extended the relief previously provided by CFTC Letter No. 99-30, to permit a CPO to additionally claim relief under Rule 4.7 with respect to four other pools it operated based upon, among others, representations that: (1) at least 94% of the capital of each other pool was contributed by QEPs; (2) the non-QEPs would not participate in investments by the other pools in commodity interests, would not share in any profits or losses from the other pools' commodity interest trading, and would not have any other pools' assets allocable to them subject to claim by the other pools' FCM; and (3) the CPO and the other pools would follow all of the procedures and requirements set forth in CFTC Letter No. 99-30.
12/30/1999
00-05 PDF Image; Rule 4.7; Exemption
The Division of Trading and Markets permitted a CPO to treat two persons as QEPs, where: (1) the first person was an accredited investor pursuant to Rules 501(a)(5) and 501(a)(6) under the Securities Act of 1933, who had worked as an analyst/trader in the securities industry for over five years; and (2) the second person was a executive officer of the Rule 4.7 pool and a knowledgeable employee under the Investment Company Act of 1940, who had worked in the financial services industry for over seven years.
12/22/1999
00-06 PDF Image; Rule 4.7(a) - Exemptive Relief for CPO; Exemption
The Division of Trading and Markets granted an exemption to permit the CPO of a Rule 4.7 Fund to treat a key employee as a QEP. The employee, the CPO's Director of Information and Technology since November 1997, researches historical price data for all commodities traded by the Fund, has built computer models based on its research, and along with the CPO's sole principal, developed the technical trading program that provides the overall portfolio strategy for the Fund. The Division also denied an exemption to the Company with respect to another employee who: (1) serves as a trader in a discrete market in which the Fund is trading; (2) has no discretion to place trades; and (3) is not an accredited investor.
12/22/1999
00-09 PDF Image; Rule 4.7(a) and 4.7(b) - Exemptive Relief for CPO and CTA; Exemption
The Division of Trading and Markets granted an exemption to a CPO and CTA, permitting it to treat unnamed employees of the CPO and its affiliates who meet certain specified criteria as QEPs for the purpose of investing in a Rule 4.7 Fund and any Future Funds (Future Funds) operated by the CPO.
12/09/1999
00-22 PDF Image; Section 2(a); No-Action
No-Action letter allowing the Montreal Exchange's futures contract based on the S&P/TSE 60 Stock Index to be offered or sold in the United States.
05/20/1999
00-29 PDF Image; Section 4k(1); Interpretation
The Division of Trading and Markets determined that an employee of an IB fell within the clerical capacity exception to the AP registration requirement under Section 4k(1) of the CEAct because the employee's duties in connection with the solicitation and acceptance of customer orders were limited to giving price quotes and accepting customer orders for commodity interest contracts. The employee would not have any discretion over any of the IB's customer accounts, the employee would be paid on an hourly basis, and one of the IB's AP's would supervise the employee.
08/11/1999
00-31 PDF Image; Rules 4.21, 4.22, and 4.23(a)(10) and (a)(11); Exemption
The Division of Trading and Markets permitted a registered CPO to continue to claim relief from Rules 4.21, 4.22, and 4.23(a)(10) and (a)(11) in connection with the CPO's operation of a fund, notwithstanding the investment in the fund of a non-QEP principal of the CPO and two non-QEP charitable trust established by two other principals of the CPO. The non-QEP investors were, or were created and managed by, principals of the CPO who had been employed by the CPO for at least the past four years and who should have access to the information otherwise required by Rules 4.21, 4.22, and 4.23(a)(10) and (a)(11).
11/29/1999
00-43 PDF Image; 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.
12/23/1999
00-84 PDF Image; Rule 4.14(a)(6) and 4.31; Other Written Communication
The Division of Trading and Markets rejected the claim by an IB that the IB was not required to make available at its website the Disclosure Documents of CTAs whose performance the IB compiled, formatted and featured on the website, and in whose fees the IB shared (in at least some instances). Consistent with the guidance set forth in 63 Fed. Reg. 39104 (July 22, 1997), the Division required the IB: 1) to post on the website a summary risk disclosure statement; 2) to ensure that any third-party CTA information on the website (including performance) is accurate and not misleading; and 3) in each instance of fee-sharing or other direct compensation of the IB by a CTA, to make the CTA's Disclosure Document easily available on the IB's website.
01/25/1999
99-07 PDF Image; Section 4d of the Act; Interpretation
The Division of Trading and Markets (Division) issued an interpretation to a company that wished to enter into futures and options contracts on behalf of farmers as part of the company's proposed grain marketing and price hedging services that the company would likely be required to register as a futures commission merchant to offer the services as proposed. The company intended to enter the futures and options trades on behalf of farmers through a company account and to advance to the farmers the financing needed to margin these positions. The Division further noted that alternative ways of structuring the proposed services may trigger other registration requirements under the Commodity Exchange Act (Act). The Division also pointed out that if implemented as described, the services may violate provisions of the Act and Commission rules beyond those related to registration.
02/04/1999
99-09 PDF Image; Division of Trading and Markets' Financial and Segregation Interpretation No. 4-1; Interpretation
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.
02/11/1999
99-10 PDF Image; Rule 4.14(a)(6); Interpretation
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.
02/24/1999
99-11 PDF Image; Section 4(b); Other Written Communication
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.
03/17/1999
99-12 PDF Image; 4.22(c) & (d); Exemption
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 PDF Image; Advisory 93-13; Interpretation
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 PDF Image; 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.
03/26/1999
99-15 PDF Image; 4.22(c) & (d); Exemption
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.
04/05/1999
99-16 PDF Image; 4.22 (c) & (d); Exemption
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.
04/05/1999
99-17 PDF Image; Rule 4.35(a)(7) and 4.34(n); No-Action
The Commission denied inclusion of proprietary trading results in a composite table of customer accounts. Tables must be restated for all periods where the accounts are proprietary in nature. Proprietary accounts are those accounts belonging to any person associated with any FCM, IB, CTA, CPO or Leverage Transaction Merchant as a partner, officer, employee, consultant or agent.
03/23/1999
99-18 PDF Image; Rule 155.3(c)(3); Exemption
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.
02/11/1999
99-19 PDF Image; Rule 4.21; Exemption
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.
01/11/1999
99-20 PDF Image; Rule 4.7(a); Exemption
The Commission exempted a registered CPO and CTA from certain Part 4 rules such that: (1) it could file the annual reports of certain "funds of funds" (a) within 135 days after year end with respect to those funds that invest only in other domestic investee vehicles, and b) within 155 days after year end with respect to those funds that invest in offshore investee vehicles, rather than within 90 days after year end as required by Rule 4.7; and (2) certain of the funds' books and records could be maintained at the offices of the funds' administrators, custodians or trustees rather than at the main business office of the CPO/CTA.
05/19/1999
99-21 PDF Image; Performance presentation requirements of Part 4 of the CEA; Interpretation
A CTA's trading performance should reflect gains and losses attributable to participation in the CTA's trading program or charged for the CTA's money management service. The performance presentation must not reflect income (such as imputed interest) or expenses not directly attributable to the CTA's trading. While the CTA may present information to a client in any manner that the CTA and client agree to, the performance information presented in the disclosure document must be calculated in accordance with CFTC regulations.
04/27/1999
99-22 PDF Image; Rule 4.35(a)(7) and 4.34 (n); No-Action
the Commission denied a rule change or exemptive relief to enable this firm to consider a solely owned IRA and an account owned majoraly by a sibling as non-proprietary. Proprietary accounts are those accounts belonging to any person associated with any FCM, IB, CTA, CPO or Leverage Transaction Merchant as a partner, officer, employee, consultant or agent.
05/19/1999
99-23 PDF Image; Rule 4.10(d)(1)-Definition of "pool." Rule 4.13(a)(1)-Exemption from CPO registration. Rule 4.23-Location at which CPO books and records must be maintained.; Exemption; Other Written Communication
The Division of Trading and Markets denied a request that a fund that had decreased in net asset value was no longer a pool or that the CPO was eligible to claim relief from CPO registration under Rule 4.13(a). However, the Division granted an exemption from the specific requirements of Rule 4.23 to the extent of permitting the CPO to maintain its books and records (as a registered CPO) at the offices of another CPO, since all of the first CPO's activities with respect to the fund would be conducted at the second CPO's offices.
06/03/1999
99-24 PDF Image; Division of Trading and Market's Regulation 1.17; Interpretation
Denial of request for waiver from including in liabilities the aggregate settlement amount entered into with NFA in calculating adjusted net capital.
07/14/1999
99-25 PDF Image; Section 2(a); No-Action
No-action letter allowing the Hong Kong Futures Exchange Limited (HKFE) futures contract based on the HKFE Taiwan Index to be offered or sold in the United States.
07/07/1999
99-26 PDF Image; Rule 1.35(a-1)(5) - Orders Eligible for Post-Execution Allocation.; No-Action
The Division of Trading and Markets issued a no-action position to a registered CTA to permit it to treat a commodity pool with assets of less than $5,000,000 as an eligible customer for purposes of bunched orders placed, executed, and allocated pursuant to Rule 1.35(a-1)(5). The no-action position was issued based upon representations that: 1) the CTA will employ an electronic block order allocation system, which uses an average price methodology, for the allocation of orders executed pursuant to Rule 1.35(a-1)(5) and allocated on a post-execution basis; 2) the CPO of the commodity pool also acts as the CPO of a pool which meets the assets requirement and satisfies the definition of a QEP in Rule 4.7; and 3) participants in the pool are current and former employees of the CTA or its affiliates or immediate family members of employees of the CTA.
07/14/1999
99-27 PDF Image; Rule 4.7 (Exemption) and Rule 1.56 (No-Action); No-Action; Exemption
The Division permitted a CPO to claim relief under Rule 4.7 with respect to a commodity pool that had both QEP and non-QEP participants based upon, among others, representation that: 1) 93% of the capital of the participants in the Partnership was attributable to QEPs; and 2) the non-QEPs would not participate in investments by the Partnership in commodity interests, would not share in any profits and losses from the Partnership's commodity interest trading and would not have any Partnership assets allocable to them subject to claim by the Partnership's FCM. While not having non-QEP assets subject to claim by the FCM might implicate Rule 1.56, based upon such factors as the purpose of that rule, the nature of the arrangement and the capitalization of the parties to the arrangement, the Division took a "no-action" position under Rule. 1.56 with respect to the FCM.
07/09/1999
99-28 PDF Image; Section 4d of the Act; No-Action
The Division of Trading and Markets (Division) declined to grant an FCM's no-action request regarding introducing broker (IB) registration requirements as applied to grain elevators with which the FCM wished to enter into a fee-splitting arrangement. Specifically, the FCM wanted to split the flat fee paid by a customer of the FCM's agricultural marketing service with the grain elevator that originally referred the customer to the FCM's service. The agricultural marketing service helped agricultural producers develop individualized marketing plans for those agricultural products that could be hedged using exchange-traded futures and options contracts. The Division noted that given positions set forth in previous no-action and interpretative letters, the grain elevators, in referring customers to the FCM for compensation, would be engaged in behavior that constituted indirect solicitation of customer orders and required them to register as IBs, even though the users of the market services were under no obligation to open a trading account with the FCM or use futures or options in marketing their agricultural products.
07/16/1999
99-29 PDF Image; Rule 4.7(a); Exemption
The Division of Trading and Markets granted an exemption to a CPO which allowed the CPO to treat as QEPs four non-QEP employees of the CTA that advised commodity pools operated by the CPO. The employees were all either executive officers of the CTA or otherwise sophisticated investors.
07/14/1999
99-30 PDF Image; Section 4m(1); No-Action
The Division of Trading and Markets issued a no-action position to a co-general partner of a commodity pool, relieving the co-general partner from the duty to register as a CPO. The Division took this position because, among other things: (1) the other general partner was already registered as a CPO; (2) the other general partner represented that it would undertake all CPO responsibilities, and the co-general partner's activities would be limited to providing advice on investments not subject to regulation by the Commission; (3) the other general partner was the sole shareholder, president, and employee of the co-general partner; and (4) the other general partner would be jointly and severally liable with the co-general partner.
07/23/1999
99-31 PDF Image; Sections 5 and 5a of the Act; No-Action
The Division of Trading and Markets (Division) issued a letter granting no-action relief to permit LIFFE Administration and Management (LIFFE) to make its electronic trading and order matching system, known as LIFFE CONNECT, available to its members in the US without obtaining contract market designation pursuant to Sections 5 and 5a of the CEA. Specifically, the Division agreed not to recommend that the Commission institute enforcement action against LIFFE or its members if: (1) LIFFE members trade for their proprietary accounts through LIFFE CONNECT in the US; (2) LIFFE members who are registered futures commission merchants (FCMS) or who are exempt from registration pursuant to Rule 30.10 (Rule 30.10 Firms) submit orders from US customers for transmission through LIFFE CONNECT; and/or (3) LIFFE members who are registered FCMs or Rule 30.10 Firms accept orders through AORSs from US customers for submission to LIFFE CONNECT. The Division's no-action position is limited to the contracts specifically delineated in the letter and is subject to compliance with the terms and conditions set forth therein. The conditions include: (1) only LIFEE members will have direct access to LIFFE CONNECT; (2) LIFFE members that are not registered FCMs or Rule 30.10 Firms will be permitted to transmit orders through LIFFE CONNECT only for their proprietary accounts; (3) orders for US customers accepted through an AORS and/or transmitted by LIFFE members through LIFFE CONNECT will be intermediated by a LIFFE member that is either a registered FCM or a Rule 30.10 Firm; (4) LIFFE will continue to satisfy the criteria for designation as an recognized investment exchange under applicable UK law; (5) applicable UK law will continue to require LIFFE to maintain fair and orderly markets; prohibit abuse, and market manipulation; and provide for oversight by the Financial Service Authority (FSA); (6) LIFFE will employ reasonable procedures for monitoring and enforcing compliance with the terms and conditions of the no-action relief; (7) LIFFE and LIFFE CONNECT will continue to adhere to the IOSCO Principles for Screen-Based Trading; (8) LIFFE members will be required to represent, in writing, that they submit to the Commission's jurisdiction with respect to activities conducted pursuant to the no-action relief; (9) LIFFE and its members will appoint an agent for service of process in the US; (10) upon request, LIFFE members operating pursuant to the no-action relief will provide access to the books and records maintained at their US offices and to the premises where LIFFE CONNECT is installed or used in the US; (11) LIFFE will submit to the Commission, both quarterly and upon request, specified trade volume information and a listing of the names and US business addresses of its members that have access to LIFFE CONNECT in the US; (12) LIFFE promptly will provide written notice to the Division of: (a) material changes in the information in its no-action request; (b) material changes in its rules or relevant UK rules or laws; (c) known matters that may affect the financial or operational viability of LIFFE; (d) the default, insolvency, or bankruptcy of any LIFFE member known to LIFFE that may have a material, adverse impact upon LIFFE, LIFFE's clearing system, or a US customer or firm; (e) known violations of the terms or conditions of the no-action relief; and (f) specified disciplinary action taken by LIFFE against members operating pursuant to the no-action relief; (13) satisfactory information-sharing arrangements between the Commission and the FSA will remain in effect; (14) LIFFE will provide certain information directly to the Commission and the Commission will be able to obtain sufficient information regarding LIFFE, the LIFFE Market, and LIFFE members operating pursuant to the no-action relief necessary to evaluate the continued eligibility of LIFFE or its members for the no-action relief, to enforce compliance with terms and conditions of the relief, or to enable the Commission to carry out its regulatory duties. The Division retained the authority to condition further, modify, suspend, terminate or otherwise restrict the terms of the no-action relief, in its discretion.
08/20/1999
99-32 PDF Image; Section 5a(a)(9) of the Commodity Exchange Act, Commission Regulation 1.52, and Division of Trading and Markets' Financial and Segregation Interpretation No. 4-1; Interpretation
The Division of Trading and Markets is issuing an interim Financial and Segregation Interpretation No.4-2 -- Risk-Based Auditing. The interpretation permits self-regulatory organizations to adopt a system of risk-based auditing for their member-Futures Commission Merchants.
08/10/1999
99-33 PDF Image; Section 5 and 5a of the Act; No-Action
The Division of Trading and Market (Division) issued a letter granting no-action relief to permit ParisbourseSBF SA (Parisbourse) to make its electronic trading and order matching system, known, as Nouveau Systeme de Cotation (NSC), available to members of the Marche a Terme International de France (MATIF) and Marche des Options Negociables de Paris (MONEP) in the US without obtaining contract market designation pursuant to Sections 5 and 5a of the CEA. Specifically, the Division agreed not to recommend that the Commission institute enforcement action against Parisbourse or the members of MATIF and MONEP if: (1) MATIF and MONEP members use NSC terminals located in the US to trade for their proprietary accounts; (2) MATIF and MONEP members who are registered futures commission merchants (FCMs) or who are exempt from registration pursuant to Rule 30.10 (Rule 30.10 Firms) submit orders from US customers through NSC terminals located in the US; and/or (3) MATIF and MONEP members who are registered FCMs or Rule 30.10 Firms accept orders through automated order routing systems (AORSs) from US customers for submission to NSC. The Division's no-action position is limited to the contracts specifically delineated in the letter and is subject to compliance with the terms and conditions set forth therein. The conditions include: (1) only MATIF and MONEP members will have direct access to NSC; (2) MATIF and MONEP members that are not registered FCMs or Rule 30.10 Firms will be permitted to transmit orders through NSC only for their proprietary accounts; (3) orders for US customers accepted through an AORs and/or transmitted by MATIF or MONEP members through NSC will be intermediated by a MATIF or MONEP members through NSC will be intermediated by a MATIF or MONEP member that is either a registered FCM or a Rule 30.10 Firm; (4) MATIF and MONEP will continue to satisfy the criteria for designation as a regulated market under applicable French law; (5) applicable French law will continue to require Parisbourse to maintain fair and orderly markets; prohibit abuse, and market manipulation; and provide for oversight by appropriate regulatory authorities; (6) Parisbourse will employ reasonable procedures for monitoring and enforcing compliance with the terms and conditions of the no-action relief; (7) Parisbourse and NSC will continue to adhere to the IOSCO Principles for Screen-Based Trading; (8) MATIF and MONEP members that are not registered as FCMs will be required to represent, in writing, that they submit to the Commission's jurisdiction with respect to activities conducted pursuant to the no-action relief; (9) Parisbourse and the members of MATIF and MONEP that are not registered as FCMs will appoint an agent for service of process in the US; (10) MATIF and MONEP members that are not registered as FCMS and are operating pursuant to the no-action relief will represent that they will provide access to the books an d records maintained at their US offices and to the premises where NSC is installed or used in the US, upon request; (11) Parisbourse will submit to the Commission, both quarterly and upon request, specified trade volume information and a listing of the names and US business addresses of its members that have access to NSC in the US; (12) Parisbourse promptly will provide written notice to the Division of: (a) material changes in the information in its no-action request; (b) material changes in its rules or relevant French rules or laws; and (c) known matters that may affect the financial or operational viability of Parisbouse; (13) Parisbourse will promptly notify the Commission des Operations de Bourse (COB) and the Conseil Marches des Financiers (CMF), and the COB will promptly notify the Division of: (a) the default, insolvency, or bankruptcy of any MATIF or MONEP member known to Parisbourse that may have a material, adverse impact upon Parisbourse, Clearnet, or a US customer or firm; (b) known violations of the terms or conditions of the no-action relief; and (c) specified disciplinary actions taken by CMF against any MATIF or MONEP member operating pursuant to the no-action relief; (14) satisfactory information-sharing arrangements between the Commission and the relevant French regulatory authorities will remain in effect; (15) Parisbourse will provide certain information directly to the Commission and the Commission will be able to obtain sufficient information regarding Parisbourse, MATIF, MONEP, and members of MATIF and MONEP operating pursuant to the no-action relief necessary to evaluate the continued eligibility to Parisbourse or the members of MATIF and MONEP for the no-action relief, to enforce compliance with the terms and conditions of the relief, or to enable the Commission to carry out its regulatory duties. The Division retained the authority to condition further, modify, suspend, terminate or otherwise restrict the terms of the no-action relief, in its discretion.
08/16/1999
99-34 PDF Image; Rule 4.7(a); Exemption
The Division of Trading and Markets granted a CPO an exemption such that it may treat a non-QEP, high-level employee, as a QEP. The Division took this position because, among other things: (1) the employee directed the department of the CPO responsible for reviewing, analyzing, and calculating risk estimates for, all pools operated by the CPO; (2) the employee has worked for the CPO for eight years; (3) the CPO obtained the employee's written consent to be treated as a QEP, and (4) the CPO represented that the employee is fully familiar with the risks associated with the pool in which the employee will invest, and the employee has access to all information relevant to investing in that pool.
08/16/1999
99-35 PDF Image; Rules 4.23 and 4.33; Exemption
The Division of Trading and Markets exempted a CPO and CTA firm from the requirements of Rules 4.23 and 4.33 that the firm 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 firm will notify the Division if the location of any original books and records changes; (2) the firm remains responsible for ensuring that all books and records required by Rules 4.23 and 4.33 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 firm will obtain the original books and records and provide them for inspection at its main business office; (4) the firm must disclose in its CPO and CTA Disclosure Documents where all Commission required books and records are kept; and (5) the firm remains responsible for compliance with Rules 4.23 and 4.33.
08/26/1999
99-36 PDF Image; Rule 4.7 (a); Exemption
The Division of Trading and Markets provided exemptive relief under Rule 4.7(a) to a registered CPO, notwithstanding the presence of a non-QEP in its fund, where the non-QEP is an officer and principal of the CPO, has over 20 years experience in the financial services industry, and is responsible for the general investment operations of the fund.
08/10/1999
99-37 PDF Image; Section 5 and 5a of the Act; No-Action
The Division of Trading and Markets (Division) issued a letter granting no-action relief to permit The Sydney Futures Exchange Limited (SFE) and the New Zealand Futures and Options Exchange Limited (NZFOE) to make their electronic trading and order matching system, known as SYCOM?, available to their members in the US without obtaining contract market designation pursuant to Sections 5 and 5a of the CEA. Specifically, the Division agreed not to recommend that the Commission institute enforcement action against the SFE, the NZFOE, or their members if: (1) SFE and NZFOE members trade for their proprietary accounts through SYCOM? terminals located in the US; (2) SFE and NZFOE members who are registered futures commission merchants (FCMs) or who are exempt from registration pursuant to Rule 30.10 (Rule 30.10 Firms) submit orders from US customers through SYCOM? terminals located in the US; and/or (3) SFE and NZFOE members who are registered FCMs or Rule 30.10 Firms accept orders through AORSs from US customers for submission to SYCOM?. The Division's no-action position is limited to the contracts specifically delineated in the letter and is subject to compliance with the terms and conditions set forth therein. The conditions include: (1) only SFE and NZFOE members and their affiliates will have direct access to SYCOM?; (2) SFE and NZFOE members that are not registered FCMs or Rule 30.10 Firms will be permitted to transmit orders through SYCOM? only for their proprietary accounts; (3) orders for US customers accepted through an AORS and/or transmitted by SFE or NZFOE members through SYCOM? will be intermediated by an SFE or NZFOE member that is either a registered FCM or a Rule 30.10 Firm; (4) the SFE will continue to satisfy the criteria for designation as an approved futures exchange under applicable Australian law, and the NZFOE will continue to satisfy the criteria for designation as an authorized futures market under applicable New Zealand law; (5) applicable Australian and New Zealand law will continue to require the SFE and NZFOE to maintain fair and orderly markets; prohibit abusive practices, and market manipulation; and provide for oversight of the exchanges by appropriate regulatory authorities; (6) the SFE and NZFOE will employ reasonable procedures for monitoring and enforcing compliance with the terms and conditions of the no-action relief; (7) the SFE, the NZFOE, and SYCOM?, will continue to adhere to the IOSCO Principles for Screen-Based Trading; (8) SFE and NZFOE members that are not registered FCMs will be required to represent, in writing, that they submit to the Commission's jurisdiction with respect to activities conducted pursuant to the no-action relief; (9) the SFE, the NZFOE, and those SFE and NZFOE members that are not registered FCMs will appoint an agent for service of process in the US; (10) SFE and NZFOE members that are not registered FCMs who are operating pursuant to the no-action relief represent that they will provide access to the books and records maintained at their US offices and to the premises where SYCOM? is installed or used in the US, upon request; (11) the SFE and the NZFOE will submit to the Commission, both quarterly and upon request, specified trade volume information and a listing of the names and US business addresses of their members that have access to SYCOM? in the US; (12) the SFE and the NZFOE promptly will provide written notice to the Division of: (a) material changes in the information in their no-action request; (b) material changes in their rules or relevant Australian or New Zealand rules or laws; (c) known matters that may affect the financial or operational viability of the SFE or the NZFOE; (d) the default, insolvency, or bankruptcy of any SFE or NZFOE member known to either the SFE or the NZFOE that may have a material, adverse impact upon the SFE or the NZFOE, their clearing system, or a US customer or firm; (e) known violations of the terms or conditions of the no-action relief; and (f) specified disciplinary actions taken by the SFE or the NZFOE against members operating pursuant to the no-action relief; (13) satisfactory information-sharing arrangements between the Commission, the Australian Securities and Investments Commission, and the New Zealand Securities Commission will remain in effect; (14) the SFE and the NZFOE will provide certain information directly to the Commission, and the Commission will be able to obtain sufficient information regarding the SFE, the NZFOE, and their members operating pursuant to the no-action relief necessary to evaluate the continued eligibility of the SFE, the NZFOE, or their members for the no-action relief; to enforce compliance with the terms and conditions of the relief; or to enable the Commission to carry out its regulatory duties. The Division retained the authority to condition further, modify, suspend, terminate or otherwise restrict the terms of the no-action relief, in its discretion.
08/31/1999
99-38 PDF Image; Rule 4.22 (c), (d); Exemption
Requesting on behalf of a CPO an exemption from filing a certified final report in order to save shareholders the expense that they all agree is not necessary for their protection. CFTC has granted this exemption provided the CPO distributes to participants and files copies with the Commission and NFA an unaudited report for the period ended with the permanent cessation of trading.
08/31/1999
99-39 PDF Image; Rule 4.22 (c), (d); Exemption
Requesting on behalf of a Partnership an exemption from filing a certified final report due to the small number of limited partners and the net asset value of the Partnership on April 17, 1999, in relation to the time and expense of providing an annual certified report, and due to each partner agreeing to waive the audit requirement. CFTC has granted this exemption provided the Partnership files an unaudited annual report for the Partnership for the year ending December 31, 1999, with the Commission and NFA and complies with all other requirements of regulation 4.22
08/05/1999
99-40 PDF Image; Rule 4.23; Exemption
CPO permitted to keep its books and records at other than its main business office - i.e., at the main business office of the person who provided administrative services to the CPO.
08/27/1999
99-41 PDF Image; Rule 4.13(a)(2); Exemption
The Division of Trading and Markets exempted two CPOs from the $200,000 limitation on total gross capital contributions of Rule 4.13(a)(2)(i), such that the CPOs could exclude their contributions and the contribution of the spouse of one of the CPOs for the purpose of determining whether the $200,000 limitation had been exceeded. In taking this action, the Division reviewed and compared the text of paragraphs (a)(2)(i) and (a)(2)(ii) of Rule 4.13 and noted that, at least with respect to pools with relatively limited net asset value (as was the case here), the text of paragraphs could result in an inconsistent application of the rule.
08/11/1999
99-42 PDF Image; Rule 4.7; Exemption
The Division of Trading and Markets denied a request to treat a person who was not a qualified eligible participant as a qualified eligible participant because he did not meet the portfolio requirement of Rule 4.7(a), he was not an officer or principal of the CPO of the exempt pool, and he was not otherwise employed by the CPO.
09/15/1999
99-43 PDF Image; Section 4m(1) - No-Action Position from CPO Registration; No-Action
The Division of Trading and Markets (Division) issued a CPO registration no-action position to the General Partner of a Partnership that serves as a collective investment vehicle for immediate family members and one long-term advisor to the family where the Partnership is the sole collective investment vehicle trading commodity interests that is being operated by the General Partner. The Division also confirmed that while the General Partner will become a CTA, the General Partner is exempt from registration pursuant to Section 4m(1) of the Act inasmuch as it is not holding itself out to the public as a CTA and is providing advice as to the value of or the advisability to trading commodity interests to less than 15 persons.
09/15/1999
99-44 PDF Image; Section 1(a)(5) - CTA Definition; Interpretation
The Division of Trading and Markets issued an interpretation that the statutory definition of the term "commodity trading advisor" would not be implicated with respect to an independent natural gas and electricity company, where the company intended to trade commodity interests to hedge price risk arising from its own commercial dealings - specifically, its purchases or sales of natural gas.
09/15/1999
99-45 PDF Image; Section 4m(1); No-Action
The Division of Trading and Markets issued a CPO registration no-action position to the operator of a fund where: (1) each member is effectively an immediate family member or long-term associate of another member; (2) two of the three non-managing members of the fund are registered CPOs; and (3) the third non-managing member is a spouse of one of the other non-managing members.
09/29/1999
99-46 PDF Image; Section 4m(1) of the Act; No-Action
The Division of Trading and Markets issued a CPO registration no-action position to the general partners of a general partnership based upon representations, among other things, that: (1) the general partners were established by family members of estate planning purposes, particularly for providing charitable contributions; (2) each family member was or is a QEP; and (3) all general partners have equal access to the books and records of the partnership. The Division also issued a CTA registration no-action position to the adviser of the partnership based upon, among others, representations that: (1) the sole business of the adviser is to make all of the investment decisions for, and manage the assets of, the partnership and other family partnerships; (2) the adviser is wholly owned by a company whose sole business is to provide financial and investment management services to members of the family; (3) each shareholder of the company is a family member, a direct lineal descendent of a family member or a brother of four of the family members and his direct lineal descendents; (4) nine of the directors of the company also are shareholders of the company; (5) two of the directors of the company are the spouses of shareholders of the company; and (6) the remaining two directors of the company have been employed by the company and the adviser for over five and one-half years. The partnership would invest in, and the adviser would provide advice on investing in, commodity pools operated by registered CPOs.
10/07/1999
99-47 PDF Image; Section 4d(c) of the Act -- No-Action Position from FCM Registration; No-Action
The Division of Trading and Markets issued an FCM registration no-action position to a registered IB and broker-dealer in order to permit it to effect the transfer of funds between its customers' securities and commodity interest accounts upon oral request from its customers where: (1) the customers have provided pre-authorization in writing permitting the transfer of funds both ways between their commodity interest and securities accounts; (2) less than one percent of the IB's total revenue is derived from commodity interest-related activity; and (3) the IB is not advertising its commodity interest-related activity but instead is offering these services to existing securities customers merely as a courtesy. The relief was granted on condition that the IB adopt certain specified procedures designed to safeguard those customer funds required to be segregated, including detailed recordkeeping requirements concerning any transfer of funds.
08/10/1999
99-48 PDF Image; Section 5 and 5a of the CEAct; No-Action
The Division of Trading and Markets (Division) issued a letter granting no-action relief to permit Eurex Deutschland (Eurex) members to install additional electronic trading terminals (Eurex Terminals) in the US, to list certain new contracts for trading from Eurex Terminals in the US, and to authorize the use of automated order routing systems (AORSs) without obtaining contract market designation pursuant to Sections 5 and 5a of the CEA. Specifically, the Division agreed not to recommend that the Commission institute enforcement action against Eurex or its members if: (1) Eurex members use Eurex Terminals located in the US to trade for their proprietary accounts through the Eurex electronic trading system (System); (2) Eurex members who are registered futures commission merchants (FCMS) use Eurex Terminals located in the US to submit orders from US customers for transmission to the System; (3) Eurex members who are registered FCMs or who are exempt from such registration pursuant to Rule 30.10 ("Rule 30.10 Firms") accept orders through US AORSs from US customers for transmission to the System; and/or (4) certain additional contracts are made available for trading through the System in the manner set forth in (1), (2), or (3). The Division's no-action position is limited to the contracts specifically delineated in the letter and is subject to compliance with the terms and conditions set forth therein. The conditions include: (1) only Eurex members will have direct access to the System; (2) Eurex members that are not registered FCMs or Rule 30.10 Firms will be permitted to transmit orders through the System only for their proprietary accounts; (3) orders for US customers accepted through an AORS and/or transmitted by Eurex members through the System will be intermediated by a Eurex member that is either a registered FCM or a Rule 30.10 Firm; (4) Eurex will continue to satisfy the criteria for approval as an exchange under applicable German law; (5) applicable German law will continue to require Eurex to maintain fair and orderly markets; prohibit abusive practices, and market manipulation; and provide that such requirements are subject to the oversight of the appropriate regulatory authorities; (6) Eurex will employ reasonable procedures for monitoring and enforcing compliance with the terms and conditions of the no-action relief; (7) Eurex will continue to adhere to the IOSCO Principles for Screen-Based Trading, to the extent consistent with U.S. and German law; (8) Eurex members that are not registered FCMs will be required to represent, in writing, that they submit to the Commission's jurisdiction with respect to activities conducted pursuant to the no-action relief; (9) Eurex and its members that are not registered FCMs will appoint an agent for service of process in the US; (10) Eurex members that are not registered FCMs and that are operating pursuant to the no-action relief will be required to represent that they will provide access to the books and records maintained at their US offices and to the premises where Eurex Terminals are installed or used in the US, upon request; (11) Eurex will submit to the Commission, both quarterly and upon request, specified trade volume information and a listing of the names and US business addresses of its members that have access to the System in the US; (12) Eurex promptly will provide written notice to the Division of: (a) material changes in the information in its no-action request; (b) material changes in its rules or relevant German rules or laws; (c) known matters that may affect the financial or operational viability of Eurex; (d) the default, insolvency, or bankruptcy of any Eurex member known to Eurex that may have a material, adverse impact upon Eurex, Eurex's clearing system, or a US customer or firm; (e) known violations of the terms or conditions of the no-action relief; and (f) specified disciplinary actions taken by Eurex against members operating pursuant to the no-action relief; (13) satisfactory information-sharing arrangements between the Commission and the relevant regulatory authorities will remain in effect; (14) Eurex will provide certain information directly to the Commission and the Commission will be able to obtain sufficient information regarding Eurex and the members of Eurex operating pursuant to the no-action relief necessary to evaluate the continued eligibility of Eurex or its members for the no-action relief, to enforce compliance with the terms and conditions of the relief, or to enable the Commission to carry out its regulatory duties The Division retained the authority to condition further, modify, suspend, terminate or otherwise restrict the terms of the no-action relief, in its discretion.
11/30/1999
99-49 PDF Image; Rule 4.7; Exemption
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
99-50 PDF Image; Rule 4.7; Exemption
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.
11/16/1999
99-51 PDF Image; Rule 4.21 and 4.22; Exemption; Other Written Communication
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.
11/30/1999
99-52 PDF Image; Rule 4.7(a); Exemption
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
99-53 PDF Image; Rule 4.7(a); Exemption
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
99-54 PDF Image; Rule 4.7(a); Exemption
The Division of Trading and Markets provided exemptive relief to a registered CPO that permits the firm to treat the mother and brother of the CPO's sole principal and AP as if they satisfy the QEP criteria of Rule 4.7(a). The mother lives with the CPO's sole principal and AP and he provides her with financial advice and guidance. The brother is involved in the administration of the pool, has experience in international finance, manages his own business and is an accredited investor of that term is defined in Rule 501(a)(6) under the Securities Act of 1933. Both the mother and the brother consent to being treated as QEPs.
11/30/1999
99-55 PDF Image; Rule 4.7(a); Exemption
The Division of Trading and Markets provided exemptive relief to a registered CPO that permits the CPO to treat the non-QEP managing member of the CPO as if he satisfies the QEP criteria of Rule 4.7(a). The managing member is responsible for the management of the fund operated by the CPO, is listed as a principal and an AP of the CPO, has been employed for over sixteen years in the financial services industry, is an accredited investor as the term is defined in Rule 501(a)(6) under the Securities Act of 1933 and consents to being treated as a QEP.
12/06/1999
99-56 PDF Image; Section 4m(1); No-Action
The Division of Trading and Markets issued a no-action position to an investment adviser that provides limited commodity trading advice to two foreign funds, relieving the adviser of the duty to register as a CTA. The Division took this position because, among other things: (1) the funds are organized outside of the United States: (2) shares in the funds will not be owned by or transferred to any United States person; (3) the funds' stated investment strategies are to invest primarily in equity securities; (4) the adviser is already regulated by the SEC as an investment adviser registered under the Advisers Act; (5) the funds will be operated in a manner consistent with the requirements of Rule 4.5(c)(2), and the adviser will comply with the requirement of Rule 4.14(a)(8) with respect to the manner in which commodity interest trading advice is provided to the funds; and (6) at the Division's request, the adviser will provide the Division with information demonstrating the adviser's compliance with the terms and conditions of the Division's no-action position.
11/15/1999
99-57 PDF Image; Rule 4.23(a); Exemption
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.
09/15/1999
99-58 PDF Image; Rule 4.7(a); Exemption
The Division of Trading and Markets granted a CPO an exemption such that it may treat as QEPs five non-QEP employees ("Non-QEPs") of a wholly-owned affiliate of the CPO ("CPO Affiliate") that researches investments and executes trades for the CPO's pools. The Division took this position because, among other things, the CPO represented that each of the Non-QEPs is a knowledgeable employee under the Investment Company Act of 1940, in that each Non-QEP: (i) is an executive officer of the CPO Affiliate, or (ii) regularly participates in the CPO Affiliate's investment activities and has been participating in the CPO Affiliate's or a previous employer's investment activities for at least twelve months.
08/11/1999
99-59 PDF Image; Rule 4.7(b); Exemption
The Division of Trading and Markets granted a CTA an exemption such that it may treat as a QEC an LLC with less than $5 million assets ("Non-QEC"). The Division took this position because, among other things: (1) the member of the LLC who is responsible for all of the LLC's investment decisions and who will have access to all information pertinent to the LLC's trading account in a QEC ("QEC Member"); (2) the QEC Member is a Commission registrant with extensive experience managing commodity interest trading accounts; (3) the QEC Member is the only person who contributed capital to the LLC; (4) the only other member of the LLC is a trust established by the QEC Member; (5) the QEC Member agreed that the LLC may be treated as a QEC; and (6) the QEC Member established both the LLC and the trust for estate planning purposes.
12/14/1999
99-60 PDF Image; Regulation 4.33; Exemption
A registered CTA, given power of attorney to trade client accounts at his discretion, entered into an agreement with another registrant absent requesting and receiving relief. His request for relief was denied.
12/15/1999
99-61 PDF Image; Rules 4.21, 4.22, and 4.23(a)(10) and (a)(11); Exemption
An offshore commodity pool may be granted an exemption from the disclosure, reporting and certain record-keeping requirements of Rules 4.21, 4.22, and 4.23(a)(10) and (a)(11) where: (1) it notifies the Division of Trading and Markets if the location of any books and records required by Rule 4.23(a) changes from that represented; (2) it remains responsible for ensuring that all books and records required by Rule 4.23(a) are maintained in accordance with Rule 1.31 and for assuring their availability; (3) within forty-eight hours after a request, will obtain the books and records; and (4) discloses in each Disclosure Document for the Fund that copies of the books and records are kept by the firm in its office located in the United States.
12/08/1999
99-62 PDF Image; Rule 4.7(a)(2)(iii)(A); Exemption
Indefinite relief granted for "fund to fund" from the time requirements contained in Rule 4.7(a)(2)(iii)(A) regarding the filing of an annual report.
12/17/1999
99-63 PDF Image; Sections 5 and 5a of the Act; No-Action
The Division of Trading and Markets (Division) issued a letter granting no-action relief to permit the Singapore International Monetary Exchange Limited (SIMEX) to make its electronic trading and order matching system, known as SIMEX ETS, available to its members in the US without obtaining contract market designation pursuant to Sections 5 and 5a of the CEA.
12/06/1999
99-64 PDF Image; CEA ?? 4d, 4f(b), Regulation 1.57(a); No-Action
The Division of Trading and Markets will not recommend that the Commission institute an enforcement action against a guaranteed IB if the IB introduces to its guarantor FCM certain institutional customers who employ the FCM's execution services but choose to clear their transactions with other FCMs. This no-action position does not affect any other duties or responsibilities of the IB or the FCM, and is subject to certain conditions, including a limit on volume of trading cleared through non-guarantor FCMs.
12/14/1999
99-65 PDF Image; Rule 4.23; Exemption
The Division of Trading and Markets provided exemptive relief to an applicant for registration as a CPO, from the requirements of Rule 4.23 that the firm must maintain its books and records at its main business office, so that it could keep certain books and records at a branch office where administrative and accounting functions are performed.
12/22/1999
99-66 PDF Image; 4.22(c) & (d); Exemption
Previously, the CPO of a small pool which commenced trading October 1, 1998, requested exemption from the requirement of Rule 4.22(d) that the pool's 1998 Annual Report be audited. That exemption was granted upon condition that (1) an unaudited 1998 annual report be provided to the participants, and (2) the audited 1999 report would include 1998 data. Subsequently, the small pool closed by the fiscal year ending 1999 and requested exemption from filing a certified Annual Report for the entire 15-month period.
12/16/1999
99-67 PDF Image; Section 5 of the Act; No-Action
The Division of Trading and Markets issued a letter granting no-action relief to permit the operation and use of an automated system for buying and selling electricity for delivery in the future, without the system operator obtaining contract market designation pursuant to Section 5 of the Act.
12/16/1999
99-68 PDF Image; Section 20 of the Act; Commission rules Part 190; Other Written Communication
Staff of the Division of Trading and Markets issued a letter discussing the basic legal principles governing the insolvency of clearing and non-clearing futures commission merchants (FCMs), specifically with respect to the status and disposition of retail customer accounts.
11/12/1999
99-69 PDF Image; Section 5 and 5a of the Act; No-Action
The Division of Trading and Markets issued a letter granting no-action relief to permit the International Petroleum Exchange of London Limited to make its electronic trading and order matching system, known as Energy Trading System II, available to its members in the U.S. without obtaining contract market designation pursuant to Section 5 and 5a of the CEA.

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