CFTC Staff Letter 10-06: No-Action and Exemption for Independent Trustees and CPO of Exchange-Traded Commodity Pool

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. 10-06 No Action; Exemption March 29, 2010 Division of Clearing and Intermediary Oversight Re: Section 4m(1); Regulations 4.21, 4.22 and 4.23 Dear :
This is in response to your letter dated October 20, 2006 to the Division of Clearing and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (the “Commission” or “CFTC”), as supplemented by letters and e-mail messages to Division staff dated from October 31, 2006 to December 12, 2009, (the “correspondence”). By the correspondence, you request, on behalf of certain trustees (the “Individual Trustees”) of the Fund,1 relief from the requirement under Section 4m(1) of the Commodity Exchange Act (the “Act”)2 to register as a commodity pool operator (“CPO”), such that “A”, a registered CPO, may serve as the Fund’s CPO in lieu thereof. Assuming that “A” may serve as the Fund’s CPO, you further request on behalf of “A” exemption from certain provisions of Regulations 4.21, 4.22 and 4.23,3 which concern, respectively, the disclosure, reporting and recordkeeping requirements applicable to registered CPOs. Background Based upon the representations you made in the correspondence, we understand the relevant facts to be as follows. The Fund’s shares will be offered and sold to the public pursuant to an effective registration statement (the “Registration Statement”) filed with the Securities and Exchange Commission (“SEC”). The shares will also be listed for trading on NYSE Amex LLC (“NYSE Amex”). Generally speaking, and for the purposes of responding to your request, the