CFTC Staff Letter 05-11: No-Action on CPO Registration for Co-Manager of Commodity Pool

The Division of Clearing and Intermediary Oversight will not recommend enforcement action against entity X for failing to register as a commodity pool operator under Section 4m(1) of the Commodity Exchange Act while serving as a co-manager of the Pool. This position applies because entity A, the sole registered CPO and shareholder of X, remains the sole manager, performs all trading activities, and both parties have agreed to joint and several liability for violations. The relief is contingent upon X remaining a passive entity that does not solicit customers or engage in activities requiring registration, and it does not excuse compliance with antifraud provisions or other applicable reporting requirements.

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U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5438
Facsimile: (202) 418-5547 jcarley@cftc.gov
Division of Clearing and
Intermediary Oversight
James L. Carley
Director
CFTC letter No. 05-11
June 28, 2005
No-Action
Division of Clearing and Intermediary Oversight

Re: Section 4m(1); “X” – Request for CPO
Registration Relief for Co-Manager of a Commodity Pool Dear:
This is in response to your letter dated May 17, 2005 to the Division of Clearing and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (the “Commission”), as supplemented by your e-mail messages dated May 20, 2005, June 8, 2005 and June 9, 2005, and by telephone conversations with Division staff (collectively, the “correspondence”). By your correspondence, you seek relief on behalf of “X” from the requirement to register with the Commission as a commodity pool operator (“CPO”) under
Section 4m(1) of the Commodity Exchange Act (the “Act”)1
in connection with acting as comanager of the “Pool”.2

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Source: Commodity Futures Trading Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works