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No-Action Letters

Date
No-Action Letters
02/02/1995
95-09 PDF Image; Rule 4.7(b)(1)(ii); No-Action
A CTA may claim Rule 4.7 relief in connection with providing commodity interest trading advice to an accredited investor who is not a US person and not a "qualified eligible client" based upon, among other things, representations that the investor had a long-standing business relationship with an AP of the CTA and the CTA only advised Rule 4.7 clients
11/21/1995
95-100 PDF Image; Rule 4.7(a); No-Action
The Division of Trading and Markets took a no-action position that would allow a registered CPO to admit investors in a Pool who were not QEPs and continue to claim relief pursuant to Rule 4.7(a). The non-QEP investors were the Chief Administrative Officer of the CPO, and three trusts whose beneficiaries were family members of the managing member of the CPO and whose sole trustee was a QEP. The Division also took a no-action position that would allow the Pool to invest more than ten percent of its assets in other Rule 4.7 exempt pools even though certain investors in the Pool would be non-QEP investors.
11/09/1995
95-106 PDF Image; Rule 4.7(b); No-Action
The Division of Trading and Markets took a no-action position that would allow a registered CTA to treat certain foreign clients as qualified eligible clients, as that term is defined in Rule 4.7(b), if such foreign clients: (1) are analogous in nature and purpose to United States entities specifically eligible for QEC treatment pursuant to Rule 4.7(b) and (2) have portfolios with a minimum value of $25 million.
11/22/1995
95-107 PDF Image; Rule 4.7(a); No-Action
The Division of Trading and Markets took a no-action position that would allow a registered CPO to admit investors in a Pool who were not QEPs and still claim relief pursuant to Rule 4.7(a). The non-QEP investors fell into two general categories and were either partners, employees or persons otherwise professionally linked to the CPO or trusts in which the trustees who had investment discretion were QEPs and closely related to the beneficiaries and/or founders of the trusts in question. The Division also took a no-action position that would allow the Pool to invest more than ten percent of its assets in other Rule 4.7 exempt pools even though certain investors in the Pool would be non-QEP investors.
11/27/1995
95-108 PDF Image; 4m(1) of the Act Rule 4.23; No-Action
Certain Directors not required to register as CPOs in connection with their operation of a Pool where, among other things: (1) Pool's Operator is a director of the Pool and will be registered as a CPO; (2) the Pool will be operated in compliance with Rule 4.7; (3) the non-registered Directors are "non-United States persons" except for two college professors who serve as Directors to aid in compliance with the Investment Advisers Act of 1940; (4) the Directors delegate to the Pool's Operator responsibility for the Pool's commodity interest-related activities and soliciting investors for the Pool; and (5) the Directors and the Operators are jointly and severally liable for any violations of the Act or the Commission's regulations thereunder. The Division also granted the Operator relief from certain requirements of Rule 4.23 with respect to the location of original books and records.
11/29/1995
95-109 PDF Image; CEA Section 4m(1), Rule 4.14(a)(8); No-Action
The Division took a "no-action" position with respect to failure to register as a CPO by a Luxembourg management company operating three identical Luxembourg investment funds (the "Funds") and failures to register as a CTA by the U.S. registered investment adviser providing commodity interest trading advice to the Funds, notwithstanding that (1) the Luxembourg management company was 99.98% owned by the U.S. investment adviser, and (2) several directors of the management company were U.S. persons and principals of the U.S. investments adviser and/or the adviser's U.S. parent. The Funds were marketed and sold exclusively to non-U.S. persons, all activities of the Funds were conducted outside of the U.S., no U.S. source provided capital to any of the Funds, none of the management company's U.S. directors engaged in or supervised commodity interest trading, none of the directors was subject to statutory disqualification, and the Funds would be operated in a manner consistent with Rule 4.5(c) (2). Continuing exemption under Rule 4.14 (a) (8) was granted to the U.S. investment adviser notwithstanding that providing commodity interest trading advice to the Funds would be inconsistent with Rule 4.14(a) (8)'s requirement to restrict advice to entities excluded from the "pool" definition, or which are qualifying entities under Rule 4.5.
02/09/1995
95-11 PDF Image; Rules 1.31, 1.33, 1.46, 4.32; No-Action
An FCM may provide a CTA, acting as an account controller, with confirmation and purchase-and-sale statements via electronic transmission only (i.e., without also providing such statements by mail in hard copy form), provided that: (1) the FCM continues to provide monthly account statements in hard copy form; and (2) the CTA maintains the electronically transmitted statements in accordance with the Rule 1.31 (d) standards for optical storage systems. This relief does not affect the requirement that FCMs must provide statements to customers in hard copy form
12/15/1995
95-110 PDF Image; Section 2(a); No-Action
No-Action letter allowing the Singapore International Monetary Exchange futures contract based on the Nikkei Stock Index 3 00 to be offered or sold in the United States.
01/17/1995
95-13 PDF Image; Rule 4.7; No-Action
An investor pool may be treated as a QEP, notwithstanding the presence of non-QEPs: (1) by the CPO of an investee pool in which the investor pool has been a participant for more than four years; and (2) by registered CTAs, who must have traded proprietary funds of the investor pool's CPO for a minimum of six months prior to being eligible to trade for the investor pool
02/15/1995
95-14 PDF Image; CEAct 4m(1); No-Action
Relief from CPO registration granted to a new general partner of a Rule 4.12(b) private investment limited partnership where the other general partners are registered as CPOs and the new general partner's responsibilities will be limited to financial administrative matters
02/23/1995
95-16 PDF Image; Rule 4.14(a)(6); No-Action
Where a principal/AP of a registered introducing broker exercises discretionary authority over nine of the IB's 17 accounts, the IB will not be required to register as a CTA, provided it does not acquire any additional client accounts that the IB or the principal/AP would direct
03/03/1995
95-18 PDF Image; Rule 4.10(d); No-Action
A partnership in which all the partners are immediate members of the same family is not a commodity pool as defined in Rule 4.10(d) and, therefore, no partner is required to register as a CPO
02/24/1995
95-19 PDF Image; Rules 3.1(a), 3.10(a)(2); No-Action
(denied) - A CTA is required to list its corporate secretary as a principal of the CTA (and that person, like all corporate officers, must file a Form 8-R and a fingerprint card), even though the CTA claims that the corporate secretary performs only clerical functions
03/10/1995
95-22 PDF Image; Rule 4.7; No-Action
A registered CPO may treat a pool as an exempt pool under Rule 4.7(a), where the sole non-QEP investor: (1) is an "accredited investor" under SEC Regulation D; (2) is a vice president of the CPO; and (3) has applied for registration as an AP of the CPO
03/13/1995
95-23 PDF Image; Rule 4.7; No-Action
A CPO may continue to claim Rule 4.7 relief for a fund, including the right to invest more than ten percent of the fund's assets in Rule 4.7 investee pools, notwithstanding the fund's acceptance of a non-QEP investor who is the managing director and a listed principal of the CPO
03/13/1995
95-24 PDF Image; CEAct 4m(1); No-Action
The new general partner of a Rule 4.12(b) private investment limited partnership is not required to register as a CPO where: (1) the other general partners are, or will be, registered as CPOs; (2) the new general partner's responsibilities will be limited to financial administrative matters; and (3) the new general partner will not exercise discretion, supervision or control over, or participate in, either (i) the solicitation, acceptance or receipt of funds or property to be used for purchasing interest in the partnership, or (ii) the investment, use or disposition of funds or property of the partnership
03/14/1995
95-25 PDF Image; Rule 4.5; No-Action
Three corporate affiliates of a bank holding company will not be required to register as CPOs with respect to their combined management, investment of assets, and sale of units, of a pooled investment vehicle organized as a Delaware business trust ("the Trust"), and will be allowed to operate the Trust under the provisions of Rule 4.5. Of the three affiliates: one acts as trustee, subject to state banking regulations; the second engages in sales and administrative activities with respect to the Trust, also subject state banking regulations; and the third, which acts as the Trust's investment manager, is registered as both an investment adviser with the SEC and a CTA with the CFTC
03/15/1995
95-26 PDF Image; CEAct 4m(1); No-Action
The operator of an offshore pool is not required to register as a CPO, where the operator is wholly owned by a U.S. person who is listed as the sole principal and is registered as an AP of a registered CPO and CTA
02/16/1995
95-27 PDF Image; CEAct 1a(5), 4m(1); No-Action
A company engaged in the business of acquiring mortgage loans and mortgage backed securities, subject to SEC regulation, is not required to register as a CPO where it will open commodities accounts only to hedge its interest rate exposure, and the aggregate funds to be deposited as original margin or option premiums will be limited to no more than one percent of the fair market value of the company's assets. Also, three company officers who will advise the company regarding this trading are not required to register as CTAs where they: (1) are not subject to statutory disqualification; (2) do not provide trading advice to any other persons; and (3) do not otherwise hold themselves out to the public as CTAs
03/13/1995
95-28 PDF Image; CEAct 4d, Rule 1 3(mm); No-Action
A natural person ("A") is a principal and sole owner of a registered corporate CPO, which has organized a pool. A is also an AP of a registered IB. The CPO will not be required to register as an IB also, even though the CPO, rather than A in his capacity as an AP of the IB, will receive as income certain commissions payable to A from the IB, relating to trades introduced for the pool
02/10/1995
95-30 PDF Image; CEAct 4m(l), Rule 4.5(c) (2); No-Action
An SEC registered broker-dealer with its principal office and place of business in Puerto Rico is not required to register as a CPO or CTA in connection with operating an investment company (the "Fund"), where: (1) certain restrictions are imposed on the Fund's investment activities; (2) the Fund is registered under the laws of Puerto Rico; (3) the Funds is organized in Puerto Rico and will be offered solely to residents of Puerto Rico; and (4) the Fund will use commodity interest contracts in a manner consistent with Rule 4.5(c)(2). Also, a financial institution chartered and having its principal office and place of business in Puerto Rico, which will jointly manage the Fund's investment portfolio and share authority to make investment decisions for the Fund, is not required to register as a CTA
12/05/1995
95-40 PDF Image; Rule 4.7; No-Action
A CPO may claim Rule 4.7 relief for a pool, where a trust, one of the participants in the pool, is not a QEP, but one of the two trustees is a QEP, provided that the trustees consent to the trust being treated as a QEP, and that the CPO files notice of a claim for exemption under Rule 4.7 and otherwise complies with the rule
03/16/1995
95-41 PDF Image; CEAct 4m(l), Rule 4.23(a); No-Action; Exemption
The foreign administrative general partner of a pool is granted relief from CPO registration where a second general partner, who is a registered CPO, runs the investment and trading program of the pool and co-signs an affidavit with the administrative general partner wherein each accepts joint and several liability for any CEAct violations by the other. Relief from registration is also conditioned on the fact that the one limited partner, although a U.S. person (because it is wholly owned by a US person), is a major institutional investor who is a QEP under Rule 4.7
03/23/1995
95-42 PDF Image; CEAct 4d, Rule 1.3(mm); No-Action
A CTA will not be required to register as an IB where, among other things, an FCM remits to the CTA a per-trade fee in satisfaction of a fixed yearly fee, which the CTA's sole non-discretionary client agreed to pay for trading signals and research. Relief is subject to the condition that the CTA does not accept compensation from any other client except in the form of incentive and management fees that are not remitted to the CTA on a per-trade basis
04/26/1995
95-47 PDF Image; Rule 1.3(y); No-Action
An FCM may treat the accounts of its Directors, and the Directors of its parent, as customer rather than proprietary accounts where, among other things, the Directors do not participate in or supervise trading for the FCM or its parent, and each Director agrees to subordinate his claims to the claims of other customers in the event of the FCM's receivership or bankruptcy. The relief was granted in light of: (1) the apparent low volume of trading in the Directors' accounts; (2) the small number of Director accounts in comparison with total customer accounts; (3) the often short-term nature of a Director's tenure; and (4) the fact that Directors are generally long-standing customers of the parent and the FCM, who continue their customer relationship following the expiration of their terms as Directors
03/15/1995
95-50 PDF Image; Rule 4.7; No-Action
A fund-of-funds QEP partnership may treat certain limited partners as QEPs, and so may invest more than ten percent of the partnership's assets in Rule 4.7 exempt pools, where all of the non-QEP limited partners: (1) are SEC Regulation D "accredited investors;" (2) are personally known to the general partners; (3) have been limited partners for at least the past five years; and (4) have consented to being treated as QEPs and to a waiver of the ten percent limitation
05/01/1995
95-51 PDF Image; CEAct 4d(1), Rule 1.3(mm); No-Action
An arrangement whereby an FCM offers a credit equal to 15 percent of its commission charges to its customers who are also customers of a particular information services company, and such credits are then used to pay for the information services, would bring the information services company within the definition of an introducing broker. However, because the information services company's activities also bring it within the definition of a CTA, and the purposes of the CEAct would not require it to register as both an IB and a CTA, the arrangement is permissible if the information services company registers as a CTA
03/13/1995
95-53 PDF Image; Rules 4.21(a)(4), (a)(5) and (f); No-Action
A registered CPO is granted relief from: (1) disclosing the past performance of another CPO at which one of its principals had been employed, where the principal's role, with both the former and the current CPO, is a limited one and the current CPO would include a discussion of the former CPO's performance results and make them available upon request; (2) disclosing the past performance of "less than ten percent" CTAs; and (3) including an Account Statement with the Disclosure Document, where the pool offers daily investment and redemption privileges, provided the Account Statement would be included with the confirmation of purchase
05/26/1995
95-59 PDF Image; Rule 1.33; No-Action
An FCM with affiliates that are members of non-domestic futures exchanges may calculate and report to customers an average price with respect to trades executed on those non-domestic exchanges where: the trades are cleared at the actual execution prices; the non-domestic exchange does not prohibit average pricing; the customer requests average pricing and appropriate disclosure is made to all affected customers; the average price calculation procedures are consistent with those approved by the Commission in connection with exchange rules establishing average pricing systems; and the underlying records reflecting actual execution prices, average price calculations, and allocations are maintained at the FCM and are available for review by the Commission and affected customers
06/01/1995
95-60 PDF Image; CEAct 4p(b), Rule 3.34, Rule 3.12; No-Action
The Division of Trading and Markets granted relief from the Commission's four hour ethics training requirement for new registrants for two APs who had been registered prior to April 26, 1993. In this case, the APs became employed by a new firm and missed by seven days and five days, respectively, the sixty day transfer window afforded certain Commission registrants under Rule 3.12(d). In this case, the processing and finalization of the APs' forms 8-R were delayed due to a clerical error by the new firm.
07/15/1995
95-63 PDF Image; Rules 1.35 and 155.3; No-Action
A registered investment advisor who is a limited partner of an FCM, and who is not involved in the operations and management of the FCM, may bunch customer accounts orders and FCM employee benefit account orders in which the investment advisor may have a minimal interest, for execution by and clearing through the FCM under limited circumstances
05/23/1995
95-64 PDF Image; CEAct Section 4m(1); No-Action
No enforcement action is recommended if a co-general partner fails to register as a CPO where the co-general partner and registered CPO makes all investment decisions for the funds; exercises discretion, supervision, and control over all offerings and solicitation; will solicit, accept, and receive the funds and property of the fund; and where the non-registered co-general partner has no direct or supervisory involvement in these activities
07/19/1995
95-66 PDF Image; Rule 4.7(a)(1)(ii)(B)(2)(xi); No-Action
A no-action position was taken with respect to the 10% investment restriction in Rule 4.7 where a Rule 4.12(b) pool claiming exemption under Rule 4.7 ("Pool A") had as a participant another Rule 4.12(b) pool ("Pool B"), and Pool B had several non-QEP participants and more than 10% of its assets invested in Pool A. The Division also confirmed that, notwithstanding the conversion of Pool A from a Rule 4.12(b) pool to a Rule 4.7 exempt pool, Pool B could continue to multiply its investment in Pool A by 10% for purposes of determining Pool B's eligibility for exemption under Rule 4.12(b), based on pool A's representation that its commodity interest trading would continue to conform to the provisions of Rule 4.12(b), subsequent to Pool A's claim of exemption under Rule 4.7
07/26/1995
95-67 PDF Image; CEAct Section 4m(1); No-Action
The Division of Trading and Markets would not recommend that the CFTC take enforcement action against any registered investment adviser for failing to register as a CTA or CPO, when the requirement to register with eh CFTC is based solely upon the IA's providing investment advice to or exercising investment discretion on behalf of customers with respect to Chicago Mercantile Exchange foreign currency interests; or any registered investment company if such investment company does not register as a CPO when the requirement to register with the CFTC is based solely upon the ICs operating a collective investment vehicle that trades in CME foreign currency interests. This position, however, would not relieve registered investment advisors from the requirement to register as CPOs if they engaged in operating a commodity pool, and is subject to the condition that such persons claiming relief under this letter do not hold themselves out generally to the public as CTAs or CPOs
08/14/1995
95-70 PDF Image; Rule 4.31; No-Action; Exemption
The Division of Trading and Markets exempted a registered CTA from the disclosure document requirements of Rule 4.31 where the CTA's sole client was an offshore commodity pool (the "Fund") which would have no participation by U.S. persons. In addition, the division took a CPO registration no-action position with respect to a British Virgin Islands company controlled by a U.S. company registered with the CFTC as a CPO, where the company served as co-CPO to the fund. The no-action position stipulated, among other conditions, that the U.S. registered CPO file Form 3-R naming the fund as a commodity pool to be operated by it; and the U.S. CPO and the company each provide written acknowledgement accepting joint and several liability for any violations of the Act or CFTC rules relating to their activity in connection with the fund.
08/21/1995
95-72 PDF Image; Rule 4.7; No-Action
A charitable foundation may be treated as a QEP with respect to a pool where the charitable foundation's investment decisions are made by an individual who is QEP and has a net worth exceeding $25 million, more than 25 years of professional management experience, extensive experience with interest-rate arbitrage, a long-standing professional and personal relationship with the principals of such pool's CTA, and through this relationship, has detailed knowledge about such pool
08/30/1995
95-74 PDF Image; CEAct Section 2(a); No-Action
The Commission will take no action if futures contracts on the MIB 30 are traded on the Italian Stock Exchange Council's Italian Derivatives Market
07/10/1995
95-77 PDF Image; CEAct Section 4m(1), Rules 4.5 and 4.14(a)(8); No-Action
The directors and the investment adviser of a fund, organized under the laws of Puerto Rico, need not register as CPOs and as a CTA, respectively, where (1) at least seventy-five percent of the directors of the fund will have their principal residences in Puerto Rico; (2) shares of the fund will be sold solely to persons who have their principal residences or places of business in Puerto Rico; (3) the fund is registered as an investment company under the Puerto Rico Investment Companies Act and, thus, is exempt from registration as an investment company under the Investment Company Act of 1940; (4) the fund will be operated in a manner consistent with Rule 4.5(c)(2); and (5) the investment adviser, which is registered under the Investment Advisers Act of 1940, will comply with the requirements of Rule 4.14(a)(8) with respect to the manner in which commodity interest trading advice is rendered to the fund
07/21/1995
95-79 PDF Image; CEAct Section 4m(1); No-Action
Floor brokers who are also registered as associated persons of a commodity pool operator need not register as commodity trading advisers in connection with advice they are to render to a fund the CPO operates.
09/05/1995
95-80 PDF Image; CEAct Section 4m; No-Action
No action is taken with respect to the failure of two individual general partners of commodity pools to register as commodity pool operators where: (1) neither individual would exercise discretion or control over solicitation, investment, or disposition of pool funds or property, including commodity interest trading decisions; (2) the individuals would be listed as principals of a corporate general partner (and registered CPO) of the pools, and would submit to NFA background checks; and (3) each individual accepted joint and several liability with two existing general partners (who are registered as CPOs) for Commodity Exchange Act and Commission rule violations.
09/20/1995
95-83 PDF Image; Rule 1.31, CEAct Section 1.31; No-Action
The Division of Trading and Markets issued a no-action position which provided that subject to certain conditions, an FCM and its Japanese and Hong Kong affiliates could utilize the order transmittal procedures set forth in Interpretive Letter 95-8, despite the fact that Japan and Hong Kong laws do not permit the removal of original books and records from the home jurisdiction. The additional terms and conditions require, among other things, that upon request, authenticated copies of the foreign affiliates' original books and records be provided to the CFTC, and that the FCM and each of its relevant Japanese and Hong Kong affiliates undertake to provide access to original books and records at a designated location at the request of, among others, the CFTC.
09/19/1995
95-87 PDF Image; CEAct Section 4m(1); No-Action
Where an FCM requested broad advice on whether its involvement with swaps and certain other derivatives transactions would require it to register as a CTA, the Division advised the FCM to review with counsel its activities and each derivatives transaction in question to determine first, whether such activities implicated the statutory definition of CTA, and if so, whether an exemption from registration, such as that contained in Part 3 5 of the Commission rules, would be available to it.
10/10/1995
95-88 PDF Image; Rule 4.7; No-Action
Limited partners of a commodity pool may be treated as QEPs where such persons are employed_ by the pool to "target" merger and acquisition opportunities, are accredited investors and have substantial backgrounds in the investment industry
11/13/1995
95-89 PDF Image; Section 4.13(a)(1) and 4.14(a)(8); No-Action
No enforcement action recommended if a registered investment adviser, as the general partner of a partnership created to test and validate various investment strategies, fails to register as a CPO where: (1) it will no receive compensation for operating the pool; (2) it will operate only one commodity pool; (3) it is not otherwise required to register with the Commission and is not a business affiliate of any person required to register with the Commission; and (4) the pool is not advertised. No enforcement action recommended if the registered investment adviser fails to register as a CTA in connection with commodity interest trading advice provided by the partnership if: (1) it will continue to be registered as an investment adviser; and (2) it will not be holding itself out as a CTA
11/13/1995
95-91 PDF Image; Section 4m(1); No-Action
No enforcement action recommended for failure to register as a CTA where: (1) the CTA is registered as an investment adviser; (2) the client would be an offshore fund with no US. persons as investors; and (3) the commodity interest trading advice would be privded ot the fund in a manner solely incidental to its business of providing securities advice to the fund, subject to the conditions that: (1) it does not otherwise act or hold itself out as a CTA; (2) the fund will be operated pursuant to the criteria of Rule 4.5(c)(2); and it will submit to such special calls as the Division may make of it to demonstrate compliance with the terms and condition of this "no-action" position
11/13/1995
95-92 PDF Image; Section 4m(1); No-Action
No enforcement action recommended against the investment general partner or the administrative general partner of an off-shore fund where, among othe rthings, the administrative general partner, whose duties and responsibilities are ministerial in nature, fails to register as a Co-cpo of the fund when the investment general partner is a registered cpo and that the fund will only be available to non-United States persons
11/16/1995
95-93 PDF Image; Section 4m(1) of the Act, 7 U.S.C. 6m(1)(1994); Rule 4.14(a)(5), 17 C.F.R. 4.14(a)(5)(1995); No-Action
The Division granted a person (A) no-action releif from registration as a commodity trading advisor (CTA) under Section 4m(1) of the Act when A was asked to provide commodity trading advisory services to a general partnership while continuing to advise a commodity pool for which A had filed a statement of exemption from registration as a commodity pool operator (CPO) under Rule 4.13(a)(2) nd with respect to which A had performed commodity trading adviosry services pursuant to Rule 4.14(a)(5). Each of the general partners of the partnership had more than 2 0 years of experience as an investor in the securities markets and was an accredited investor. The partnership had been in operation for several yars, had $10 million of funds under management which were the funds of the four general partners, and intended to enter into transactions in futures an doptions on futures contracts that would require the partnership to commit, as initial margin and premium, less than one percent of its funds
10/30/1995
95-95 PDF Image; Section 4m(1), 7 U.S.C. 6m(1); Section 4k(2), 7 U.S.C. 6k(2); Rule 4.21 (as amended by 60 FR 38146 - 17 C.F.R 4.21, 4.24 & 4.26), 4.22, 4.23 (as amended by 60 FR 38146 - 17 C.F.R. 4.23); No-Action; Exemption
Three corporate affiliates (CI, C2 and C3) of a holding company and one natural person^ (PI) who acts in various capacities in connection with such affiliates (e.g., as director, officer, employee or agent) were granted no-action releif from registration as commodity pool operatos (CPOs). CI, C2, C3, a fourth corporate affiliate (C4) and PI organized and operate, or assisted in the organization and assist in the operation of, 21 commodity pools. The releif was granted based on various factors, including two common factors: (1) none of the pools had United States investors; and (2) none of the pools' participants were solicited in the United States. The request for relief from CPO registration with respect to CI, C2, C3 and PI was initiated as a result of Pi's determination both to reside and conduct his various buinsess activities in the United States at least eight months of each year. PI also requested, but was not granted, no-action relef from registration as an associated person (AP). Instead, PI was required to register as an AP of C4, a registred CPO located in the United States. PI is an officer of C4 and C4 is the United States business located from which PI conducts his United States-based business activities. For two of the pools: (1) C4 is required to be listed as the registered CPO;(2) C4 was granted certain exemptive relief from the disclosre, reporting and recordkeeping requirements of the Part 4 Rules; and (3) C4 was granted exemptive relief from the provision of Rule 4.34 requiring that original books and records be maintained at the offices of C4. With respect to the operation of the same two pools, C4 and one of the previously identified corporate affiliates (CI through C3) agreed to accept joint and several liability for any violation of the Act or the regulations committed by C4 or such affiliate
11/15/1995
95-97 PDF Image; 4m(1) of the Act; No-Action
International labor union granted releif form CPO registration with respect to operation of its "General Fund" containing operating revenues of the union where, among other things: (1) the union conducts its commodity trading activities solely for hedging purposes; (2) the General Fund will not commit more than five percent of its assets for initial futures margin or option premiums; (3) the union does not market the General Fund as a commodity pool; and (4) the union is not otherwise required to register with the Commission
11/15/1995
95-98 PDF Image; Section 4m(1) of the CEAct; No-Action
The "Common Members" of a company whose primary business is the issuance of guaranteed investment contracts ("CIGs") and which intended to issue equity interests to fifteen unaffiliated "institutional" accredited investors were not required to register as CPOs where, among other things, the Company will open commodity interest trading accounts for bona fide hedging transactions only to hedge its market risk exposure and will not deposit as initial margin of premiums for its commodity interest transactions an aggregate amount of funds greater than three percent of the liquidation value of the Company's outstanding GIC contracts. In addition, the Common Members of the Company advising the company with respect to commodity interest trading were not required to register as CTAs where the advisors are not subject to statutory disqualification, do not provide commodity interest trading advice to any other persons or otherwise hold themselves out generally to the public at CTAs.
12/22/1995
96-05 PDF Image; Rule 4.7(b); No-Action
Relief granted to a registered CTA to provide commodity trading advice to a fund where the fund is an offshore entity comprised of only non-U. S. persons and is not otherwise eligible for QEC status and the CTA has no other clients that are not QECs; subject to the following conditions: (1) the fund is comparable in nature and purpose to one of the United States entities eligible for QEC treatment pursuant to Rule 4.7(b); (2) the fund has a portfolio with a minimum value of twenty-five million dollars; and (3) the fund consents in writing to being treated as a QEC.
12/18/1995
96-07 PDF Image; Rule 1.57; No-Action
The Division adopted a no-action position with respect to a guaranteed introducing broker (GIB) and the guarantor futures commission merchant (GFCM) notwithstanding the fact that the GFCM would not necessarily be carrying and clearing all of the GIB's trades. Commission Rule 1.57 generally requires the GFCM to carry all of the GIB's customer accounts. In reaching this position, the Division noted, inter alia, that the GFCM had sufficient adjusted net capital and excess net capital to meet all of the GIB's obligations and that the GFCM agreed to be jointly and severally liable for all obligations of the GIB regardless of whether they were carried and cleared through the GFCM.

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