CFTC Staff Letters

The Division of Clearing and Risk and Division of Market Oversight (together, “the Divisions”) issued a no-action letter providing time-limited and specific relief for designated contract markets (“DCMs”) from compliance with certain requirements of Commission Regulation 38.152, including a prohibition against certain abusive trading practices, including pre-arranged trading.

The Division of Swap Dealer and Intermediary Oversight granted exemptive relief pursuant to Commission regulations 4.12(a) and 140.93 to a commodity pool operator of several commodity pools operating pursuant to an exemption under Commission regulation 4.7 whose only participants are principals, senior employees, portfolio managers of the commodity pool operator, and trusts controlled by the principals of the commodity pool operator from the requirement to have an independent public accountant audit the financial statements in the commodity pool’s annual report for fiscal year 2013 and going forward pursuant to Commission regulation 4.22(d).

The Division of Swap Dealer and Intermediary Oversight granted exemptive relief pursuant to Commission regulations 4.12(a) and 140.93 to a commodity pool operator of a commodity pool from the annual report filing requirements in Commission regulation 4.22(c) and permitted the commodity pool operator to file with the National Futures Association and distribute to participants an annual report for the commodity pool covering the period from January 1, 2013 to January 31, 2014, which was when the pool permanently ceased trading, by April 30, 2014 that otherwise complies with all other applicable Commission regulations.

The CPO of a commodity pool requested relief from the Annual Report filing and certification requirements in Regulations 4.7(b)(3) and 4.22(d). The CPO requested permission to file a 15-month annual report for the period from inception of trading on October 1, 2013 through December 31, 2014. The CPO represented that the pool has one participant and attached waivers from both evidencing consent to the relief requested. DSIO granted exemptive relief pursuant to Regulations 4.12(a) and 140.93 permitting the filing of 15-month certified annual report for the period from October 1, 2013 through December 31, 2014.

Conditional No-Action Relief with respect to Swaps Trading on Certain Multilateral Trading Facilities Overseen by Authorities Designated by European Union Member States

Extension of previously issued no-action.

The CPO of a commodity pool requested relief from the Annual Report filing and certification requirements in Regulations 4.22(c) and (d). In support of its request, the CPO represented that the commodity pool is currently proprietary, consisting solely of the managing member’s initial capital contribution, though the CPO is actively soliciting contributions from potential participants. DSIO granted exemptive relief pursuant to Regulations 4.12(a) and 140.93 from the certification requirement in Regulation 4.22(d), conditioned upon the CPO’s filing of an unaudited Annual Report otherwise in compliance with Regulation 4.22(c).

The CPO of a commodity pool requested relief from the Annual Report filing and certification requirements in Regulations 4.7(b)(3) and 4.22(d). The CPO requested permission to file an uncertified annual report for fiscal year 2013. The CPO represented that the pool has two participants who are principals of the CPO. DSIO granted exemptive relief pursuant to Regulations 4.12(a) and 140.93 permitting the filing and distribution of an uncertified annual report for fiscal year 2013.

The CPO of a commodity pool requested relief from the Annual Report filing and certification requirements in Regulations 4.7(b)(3) and 4.22(d). The CPO requested permission to file an uncertified annual report for fiscal year 2013. The CPO represented that the pool has two participants who are principals of the CPO. DSIO granted exemptive relief pursuant to Regulations 4.12(a) and 140.93 permitting the filing and distribution of an uncertified annual report for fiscal year 2013.

The Division of Clearing and Risk issued a letter stating that it will not recommend that the Commission take enforcement action against Singapore Exchange Derivatives Clearing Limited (SGX-DC) clearing members for failing to comply with the Commodity Exchange Act Section 4d(f)(1) registration requirements in carrying existing positions and accepting for clearing offsetting positions in certain commodity swaps for U.S. customers or customers of FCMs that clear through an FCM omnibus customer account; or SGX-DC for engaging in activities related to its clearing members carrying and accepting for clearing such customer positions.