CFTC Staff Letter 14-159: No-Action Relief from CPO Registration for Operator of Pool B

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5977
Facsimile: (202) 418-5407 gbarnett@cftc.gov
Division of Swap Dealer and
Intermediary Oversight
Gary Barnett
Director
CFTC Letter No. 14-159
No-Action
December 17, 2014
Division of Swap Dealer and Intermediary Oversight Re: Request for relief from registration as a commodity pool operator pursuant to
section 4m(1) of the Commodity Exchange Act for “A” with respect to its operation
of “B”
Dear :
This is in response to your letter (the “Letter”), dated May 19, 2014, to the Division of Swap Dealer and Intermediary Oversight (the “Division”) of the U.S. Commodity Futures Trading Commission (the “Commission” or “CFTC”). In the Letter, on behalf of “A”, you requested no-action relief from registration as a commodity pool operator (a “CPO”) pursuant to
section 4m(1) of the Commodity Exchange Act (the “Act”) 1
in connection with “A’s” role as general partner and operator of “B”.
Background Facts
Based on the representations made in the Letter and other supplemental correspondence (the “Correspondence”), the Division understands the facts to be as follows. You state that “A” is the general partner and CPO for “B”. You state that “B” was organized in March 2012 to serve as a trading vehicle to incubate systematic currency trading strategies exclusively using the capital of “C”, trusts for the benefit of his children, and his close business associates. You state that “B” has six owners—the general partner and five limited partners—which are as follows:

1. “A”, which is the general partner and operator of “B”. You state that “A” is solely
   owned by “C”. You state that neither “A” nor “C” are subject to statutory disqualification pursuant to section 8a(2) or 8a(3) of the Act.
2. “D”, which is “C’s” family investment vehicle. You state that “C” owns a majority of the
   beneficial interests in the vehicle and that the remaining beneficial interests are owned by trusts for the benefit of “C’s” children. You also state that the grantor(s) of these trusts were “C”, his former spouse, or both. Furthermore, you state that “A” currently operates