CFTC Staff Letter 91-04: No-Action Relief from CPO and CTA Registration for Offshore Fund Directors

COMMODITY FUTURES TRADING COMMISSION
2033 K STREET, N.W., WASHINGTON, D.C. 20561
(202) 254-8955
(202) 254-3534 FACSIMILE
DIVISION OF
TRADING AND MARKETS
Re:
Dear
April 25, 1991
,
Request for No-Action Relief
Operator Registration;
Action Relief from Commodity tion. and from Commodity Pool . -- Request for No￾Trading Advisor Registra￾This is in response to your letter dated September 7, 1990, as supplemented by your letters dated September 26 1 1990 and November 9, 1990 1 and telephone conversations with Division staff, wherein you request in connecti9n with the operation of "The Guarantee Fund, Limited" and "The Trading Fund, Limited" (collectively, the "Funds") that the Division not recommend enforcement action to the commission if:
{1) , and , the direc￾tors of each of the Funds (the "Directors''); do not register as commodity pool operators ("CPOs"); and (2) , who will select commodity trading advisors ( 11 CTAs 11 ) for the Funds, does not itself register as a CTA. Preliminarily, we note your explanation that the Funds' names were used merely to differentiate the two Funds, because actual names that will be used cannot be determined until the Funds are formed. Accordingly, the relief issued below is subject to receipt by the Division of the Funds' names when those names are selected. Based upon the representations made in your September 7, 1990 letter, as supplemented, we understand the facts to be as follows:

1. Both Funds will be incorporated under the International
   Business Companies Act of 1989 in accordance with the laws of the commonwealth of the Bahamas. The Funds' principal place of business will be in Nassau, Bahamas. The Trading Fund, Limited will engage in trading futures contracts, options on futures con￾tracts, commodities, spot contracts and forward con￾tracts. The Guarantee Fund, Limited will