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No-Action Letters

Date
No-Action Letters
01/14/2003
03-04 PDF Image; Section 4m(1) and Rule 4.4(a)(8); No-Action
The Division of Clearing and Intermediary Oversight took: (1) a CTA registration no-action position regarding an SEC-registered investment adviser providing commodity interest trading advice to Japanese investment trusts in which only Japanese nationals may participate; and (2) a CPO registration no-action position regarding a Japanese sponsor and organizer operating the Japanese investment trusts. The Division also advised that neither the CTA no-action position taken in this letter nor a similar position taken in a prior letter would bar the SEC-registered adviser from subsequently claiming relief under Rule 4.14(a)(8), should it decide to provide commodity interest trading advice to Rule 4.5 entities in a manner consistent with Rule 4.14(a)(8).
01/23/2003
03-05 PDF Image; Section 4m(1); No-Action
The Division of Clearing and Intermediary Oversight took a CPO and CTA registration "no-action" position with respect to a state-regulated insurance company's operation of one or more insurance company separate accounts. The premiums paid by purchasers of a life insurance product would fund the separate accounts, the assets of which would be invested in commodity pools operated by registered CPOs. Factors supporting granting the request included: (1) the investee pools would all be operated by registered CPOs and advised by registered CTAs; (2) the requester was a state-regulated insurance company and the insurance product would be sold by SEC-registered broker-dealers; (3) the requester would design the insurance features of the proposed program and would not participate in the commodity interest-related activities; (4) separate account assets would not invest directly in commodity interests but would only invest through limited liability trading vehicles; and (5) purchasers of the product would be limited to QEPs.
02/13/2003
03-06 PDF Image; Section 2(a); No-Action
Osaka Securities Exchange's request for no-action relief in connection with the offer and sale of its futures contracts based on the FTSE Japan Index and the MSCI Japan Index in the United State.
02/13/2003
03-07 PDF Image; Section 2(a); No-Action
Singapore Exchange Derivatives Trading Limited's request for no-action relief to offer and sell its futures contracts on the MSCI Japan Index in the United States.
02/24/2003
03-08 PDF Image; Section 5 and 5a of the CEA; No-Action
The Division of Market Oversight issued a letter amending the no-action relief granted November 12, 1999, permitting the International Petroleum Exchange of London Limited (IPE) 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 Sections 5 and 5a of the CEA. Subject to two conditions, the amendment permits IPE to make its early morning (U.K. time) trading session in the Brent futures and Gas Oil futures contracts available in the U.S. on the ICE Platform, an electronic trading system operated by Intercontinental Exchange, Inc., without obtaining contract market designation or registration as a derivatives transaction execution facility pursuant to Sections 5 and 5a of the CEA.
03/10/2003
03-12 PDF Image; Section 5 and 5a; No-Action
The Division of Market Oversight issued a letter further amending the no-action relief granted November12, 1999, permitting the International Petroleum Exchange of London Limited (IPE) 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 Sections 5 and 5a of the CEA. Subject to two conditions, the amendment permits IPE to extend its early morning (U.K. time) trading sessions in the Brent futures and Gas Oil futures contracts available in the U.S. on the ICE Platform, an electronic trading system operated by Intercontinental Exchange, Inc., without obtaining contract market designation or registration as a derivatives transaction execution facility pursuant to Sections 5 and 5a of the CEA.
03/17/2003
03-13 PDF Image; Section 4d(1); No-Action
The Division of Clearing and Intermediary Oversight recommended that the Commission not take any enforcement action against an FCM or a bank affiliate of the FCM if the bank affiliate introduced commodity customers to the FCM without being registered with the Commission as an IB. This position was based upon: (1) the bank affiliate being subject to Federal and State banking regulations; (2) all employees of the bank affiliate that introduce customers to the FCM being registered as APs of the FCM; (3) each office where the futures-related activities will take place being identified as a branch office of the FCM and listed as such in the appropriate forms filed with the National Futures Association; (4) a registered AP of the FCM, appropriately designated as a branch office manager, supervising the futures-related activities of the bank affiliate employees registered as APs of the FCM; and (5) the FCM being liable for the activities of such APs as provided for under the Act and Commission rules.
04/07/2003
03-16 PDF Image; Section 2(a); No-Action
Euronext Amsterdam N.V.'s requested no-action relief in connection with the offer and sale in the United States of its futures contracts based on the Amsterdam Exchanges Index.
04/14/2003
03-17 PDF Image; Sections 5 and 5a; No-Action
The Division of Market Oversight issued a letter further amending the no-action relief granted November 12, 1999, permitting the International Petroleum Exchange of London Limited (IPE) 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 Sections 5 and 5a of the CEA. The amendment permits IPE to make all of its contracts, including Brent Crude futures and option contracts, Gas Oil futures and option contracts, and U.K. Natural Gas futures contracts, available in the U.S. during the course of the entire trading day on the ICE Platform, an electronic trading system operated by Intercontinental Exchange, Inc., without obtaining contract market designation or registration as a derivatives transaction execution facility pursuant to Sections 5 and 5a of the CEA.
04/04/2003
03-18 PDF Image; Section 4m(1) and Rule 4.14(a)(8); No-Action
The Division of Clearing and Intermediary Oversight took: (1) a CPO registration no-action position regarding a U.K. investment adviser and its U.S. person directors in connection with operating certain non-U.S. commodity pools in which only non-U.S. persons may participate; and (2) a CTA registration no-action position regarding the same U.K. investment adviser and two affiliated SEC-registered investment advisors providing commodity interest trading advice to the same non-U.S. commodity pools. The Division also advised that the CTA no-action position taken in this letter would not bar the SEC-registered advisers from continuing to claim relief under Rule 4.14(a)(8), or bar the U.K. investment adviser from claiming Rule 4.14(a)(8) relief in the first instance, provided U.K. investment adviser's application for registration with the SEC as an investment adviser becomes effective.
04/28/2003
03-19 PDF Image; Section 4d, Rule 1.3(mm); No-Action
The Division of Clearing and Intermediary Oversight denied relief from registration as an introducing broker as the requestor would be directing potential customers to Commission registrants for a fee.
04/17/2003
03-20 PDF Image; Section 4m(1); No-Action
The Division of Clearing and Intermediary Oversight provided temporary no-action relief to allow a registered CPO that operates certain funds, for which it is required to register as a CPO, to operate certain other funds as if it were an unregistered CPO. This relief is subject to, among other things: (1) the requirement that the CPO operate the funds for which it is seeking relief pursuant to the requirements of a temporary no-action position announced by the Commission and published in the Federal Register pending final action on certain proposed rules; and (2) the expiration of the no-action relief when final action is taken on the proposed rules.
06/03/2003
03-25 PDF Image; Rule 4.35; No-Action
A Commodity Trading Advisor, which is also registered as an Investment Advisor, requested relief concerning its presentation of past performance in accordance with Rule 4.35. The Division of Clearing and Intermediary Oversight determined not to recommend that the Commission commence any enforcement action against the CTA based solely upon its failure to present its past performance information pursuant to the specific requirements of Rule 4.35, provided that it remains in compliance with applicable requirements under securities laws and its commodity interest trading continues to represent less than 1% of its assets under management.
06/18/2003
03-27 PDF Image; Section 2(a); No-Action
EDX London Exchange's request for recognition as Successor-in-Interest to OM London Exchange Limited under the 1996 No-Action Letter regarding the offer and sale of futures contracts on the OMX index in the United States.
07/17/2003
03-28 PDF Image; Section 1a(12) and (23) of the CEAct and Commission Rules 1.3(g) and (mm), 1.57 and 30.10; No-Action
The Division of Clearing and Intermediary Oversight issued a no-action letter to permit a foreign entity that has previously been granted exemption from registration by a Commission order issued under Rule 30.10 in connection with foreign futures and options to also act as an IB with respect to trades executed on U.S. markets for U.S. institutional customers without registering as an IB. The foreign entity is an affiliate of a U.S. FCM to which it would introduce business and the relief was conditioned upon the U.S. FCM acknowledging joint and several liability for the foreign entity's handling of orders for U.S. institutional customers for trading on U.S. markets.
10/01/2003
03-33 PDF Image; Section 4m(1) - CPO and CTA registration requirements; No-Action
The Division of Clearing and Intermediary Oversight took: (1) a CPO registration no-action position regarding an SEC-registered investment adviser (the "Adviser") and the directors of a family of Puerto Rico investment companies (the "Funds"); and (2) a CTA registration no-action position regarding the Adviser. Each of the Funds is registered under the Puerto Rico Investment Companies Act, has its principal place of business in Puerto Rico, and may be offered and sold only to persons whose principal place of business or principal residence is in Puerto Rico. At least 75% of each Fund's directors have their principal residence in Puerto Ricco and none of the directors is subject to statutory disqualification under section 8(a)(2) or (a)(3) of the CEAct.
10/09/2003
03-34 PDF Image; Section 4m(1) - CPO registration requirements; No-Action
The Division of Clearing and Intermediary Oversight took a no-action position permitting a CPO to claim exemption under rule 4.13(a)(3) with respect to an existing pool, notwithstanding that one participant was not an accredited investor ("AI"), where the non-AI was a charitable trust formed by family members who were AIs to teach their children about charitable giving, and the family members were also invested in the pool.
10/17/2003
03-35 PDF Image; Section 2(a); No-Action
National Stock Exchange of India Limited's request for no-action relief in connection with the offer and sale of its futures contract based on the Standard & Poors CNCX Nifty Index in the United States.
11/05/2003
03-37 PDF Image; Rule 1.17; No-Action
No-action position permitting futures commission merchants, subject to certain limitations, to include stock of the Board of Trade Clearing Corporation as a current asset in computing their adjusted net capital under Commission Rule 1.17.

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