COMMODITY FUTURES TRADING COMMISSION APPROVES
NFA RULE TO PERMIT TWO-PART DOCUMENTS BY
COMMODITY POOL OPERATORS

WASHINGTON -- As part of its ongoing efforts to reform and streamline regulations governing the futures markets, the Commodity Futures Trading Commission today announced the approval, pursuant to Section 17(j) of the Commodity Exchange Act, of the National Futures Association's ("NFA") Compliance Rule 2-35, subsections (a) through (c), which provides for the use of two-part documents by commodity pool operators ("CPOs"). The Commission also approved amendments to Commission Rules 4.24(v) and 4.25(c)(5), which allow the use of two-part documents pursuant to NFA Compliance Rule 2-35. The first part of a two-part disclosure package permitted under the new rules is the Disclosure Document required by Commission Rule 4.21(a). The second part is a Statement of Additional Information ("SAI") that may contain information not included in the Disclosure Document, provided that such information is not misleading or otherwise inconsistent with applicable statutes, rules or regulations. The revised rules are intended to provide prospective pool participants with material information concerning the commodity pool in a concise, readable format.

NFA Compliance Rule 2-35, its related Interpretive Notice, and proposed amendments to Commission rules were published in a Federal Register notice on March 30, 1998. Based on the public comments received and its own consideration of the rules, the Commission approved NFA Compliance Rule 2-35 and the proposed Commission rule amendments, subject to certain revisions. The final rules will become effective 60 days after publication in the Federal Register; however, Disclosure Documents may be prepared, filed and used in accordance with the revised rules prior to the effective date. For pools that are continuously offered, amendment of the Disclosure Document is not required solely due to the rule revisions, and CPOs of such pools may make conforming changes as part of their next regular update in accordance with Commission Rule 4.26.