CFTC Staff Letter 09-27: CTA Definition and Registration for SEC-Registered Investment Advisers

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5430
Facsimile: (202) 418-5547 aradhakrishnan@cftc.gov Division of Clearing and Intermediary Oversight Ananda Radhakrishnan Director CFTC Letter No. 09-27 Interpretation June 25, 2009 Division of Clearing and Intermediary Oversight Re: Section 1a(6) – Commodity Trading Advisor Definition
Section 4m – Commodity Trading Advisor Registration
Dear :
This is in response to your letter dated May 1, 2009, to the Division of Clearing and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“Commission” or “CFTC”), as supplemented by your email dated May 28, 2009 (collectively, “correspondence”). By the correspondence, you request that the Division confirm your view that “A”, an investment adviser registered as such with the Securities and Exchange Commission (“SEC”), does not come within the statutory definition of the term “commodity trading advisor” (“CTA”) in Section 1a(6) of the Commodity Exchange Act (“Act”) and therefore is not required to be registered with the Commission as a CTA under Section 4m(1) of the Act, or in any other capacity.1 Based upon the representations made in the correspondence, we understand the relevant facts to be as follows: “A” offers to its clients a “comprehensive portfolio management program.” It wishes to offer as part of the portfolio a “managed futures account,” i.e., an account