RegAlert2014-03-18 | CFTC Staff Letter 14-29Added · Updated
CFTC Staff Letter 14-29: Confirmation of No-Action Relief for University Trading Clubs
The Division of Swap Dealer and Intermediary Oversight confirms that CFTC Staff Letter No. 00-10 remains valid for a university, its agents, and employees, allowing them to offer courses involving commodity interest trading through student trading clubs without registering as commodity pool operators. This no-action position applies provided the university implements specific amendments, including increasing the maximum participant contribution to $600.00, expanding course credits to three hours, establishing minimum instructor criteria, and increasing the reserve loss fund. The relief is contingent upon the university maintaining representations that no trading occurs in swaps or forex contracts and that the university assumes responsibility for losses exceeding pooled funds. This confirmation does not exempt the entities from other applicable Act requirements, including antifraud provisions and reporting obligations.
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Division of Swap Dealer and Gary Barnett
Intermediary Oversight Director
U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-6700
Facsimile: (202) 418-5528 gbarnett@cftc.gov
CFTC Letter No. 14-29
No-Action
March 18, 2014
Division of Swap Dealer and Intermediary Oversight Re: CFTC Staff Letter No. 00-10 – Request for Confirmation of Relief Dear :
This is in response to your letter dated May 20, 2013 (“Correspondence”), to the Division of Swap Dealer and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“Commission” or “CFTC”), by which you sought confirmation that the relief Commission staff previously had provided by CFTC Staff Letter No. 00-10 (“Prior Letter”) would continue to obtain if certain changes were made to the criteria upon which staff had issued the Prior Letter (“Amendments”). Specifically, by the Prior Letter, Commission staff stated that it would not recommend that the Commission commence an enforcement action for failure to register as a commodity pool operator (“CPO”) under Section 4m(1) of the Commodity Exchange Act (“Act”) 2 against the “A” (“University”), or any of its agents and employees, if the University offered, as part of its curriculum, a course that would allow University students to trade commodity interests through participation in a trading club (“Trading Club”) offered in conjunction with enrollment in a University course (“Course”). In taking this position, Commission staff stated:
[G]ranting your request would not be contrary to the public interest or the purposes of Section 4m(1) of the Act. In this regard, we note the educational purpose of the Trading Club and your representations that: (1) the Trading Club will be promoted and sponsored by the University and the [Cooperative Extension Service]; (2) losses in excess of the pooled funds will be the responsibility of the [Social Sciences Unit]; (3) enrollment in the
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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
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CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.