No-Action Letters

85-02 ; Regulation 1.3(y); No-Action
Staff declined request to treat commodity pool which allowed employees to purchase over 10% of the total interest of the pool as a customer account rather than a proprietary account. Staff did however grant limited no-action relief. This relief allowed the company to classify the pool as a customer account so long as it met certain conditions. (T&M)

85-08 ; Section 4m(1); No-Action
The Division of Trading and Markets granted CPO registration no-action relief to two “employees’ security companies” which complied with four of five criteria for exemption in proposed Regulation 4.5, but did not meet the fifth criteria, which was to be registered as an investment company under the Investment Company Act of 1940. (T&M)

85-09 ; Section 4m(1); No-Action
The Division of Trading and Markets granted CPO registration no-action relief to a bank in connection with its actions as discretionary trustee. Division staff noted that this relief was limited to the bank’s actions while the assets were within a trust designed to mirror a broadly diversified equities portfolio. (T&M)

85-12 ; Regulation 1.3(y); No-Action
The Division of Trading and Markets granted no-action relief to the Chicago Mercantile Exchange in connection with its failure to enforce an exchange rule prohibiting the acceptance or carrying of non-proprietary positions executed pursuant to a mutual offset system in a company's omnibus account (CME-SIMEX Mutual Offset System). The relief was conditioned on the representation that the company would use the mutual offset system on behalf of a customer only after an authorization executed by the customer in the required form is on file with the company. In the case of non-discretionary accounts, the company represented that each order for mutual offset would be authorized by the customer and designated as such when the order is taken.

85-15 ; Regulation 4.5; No-Action
The Division of Trading and Markets issued temporary no-action relief to master trusts who had failed to file a notice of eligibility. Division staff stated that such trusts, which contain both excluded and non-excluded pools, must file a notice of eligibility, but granted temporary relief because the regulation required clarification. (T&M)

85-17 ; Regulation 1.17(h); No-Action
The Division of Trading and Markets granted no-action relief from compliance with certain financial requirements to all FCMs and IBs that had written approval from the firm’s DSRO in connection with prepayment of subordinate debt. Division staff granted this relief in anticipation of a change in CFTC regulations that would codify this position. (T&M)

85-18 ; Section 4m(1); No-Action; Exemption
The Division of Trading and Markets granted disclosure, reporting, and recordkeeping exemption and CPO registration, reporting and other no-action relief to a foreign company engaging in securities arbitrage trading activity in the United States, where the only U. S. person involved in the organization was a New York partnership which owned 10% of the company. (T&M)

85-21 ; Section 4m(1); No-Action
The Division of Trading and Markets granted CTA registration no-action relief to a company which only provided commodity trading advice to a single registered investment company. (T&M)

85-22 ; Section 4m(1); No-Action
The Division of Trading and Markets granted CPO registration no-action relief to a fund which was a non-profit membership corporation comprised of non-profit educational organizations only using commodity futures incidentally to long positions in other markets. Division staff stated that although the fund did not fall within 4.5, the fund should nonetheless be granted relief. (T&M)

86-05A ; Section 4m(1); No-Action
The Division of Trading and Markets granted CTA registration relief to an insurance company which limited its commodity future and options trading to accounts excluded from CPO registration under Regulation 4.5. (T&M)