CFTC Staff Letter 95-26: No-Action Relief from CPO Registration for Offshore Pool Operator

COMMODITY FUTURES TRADING COMMISSION 2033 K Street, NW, Washington, DC 20581 (202) 254 -8955 (202) 254-8010 Facsimile DIVISION OF TRADING AND MARKETS March 15, 1995 Re: Confirmation of Continued No-Action Relief Dear This is in response to your letter dated January 24, 1995, as supplemented by telephone conversations with Division staff, wherein you requested relief from registration as a commodity pool operator ("CPO") on behalf of "X" in connection with its operation of 11 Y11 .1./ Based upon the representations made in your letter, as supplemented, we understand the facts to be in follows. "Y" will be organized as a limited partnership under the laws of the Cayman Islands. The general partner of "Y" will be "X", a Cayman Islands corporation wholly owned by "A". "X" will select "Z", a registered CPO and commodity trading advisor ("CTA"), as "Y's" sole CTA. "A" is a registered associated person ("AP") of "Z" and is the firm's sole principal. "X's" sole business purpose is to provide marketing, adviso￾ry and management services to "Y" -- ~' the selection of "Z" as "Y's" CTA. "Y's" business purpose is to engage· in the trad￾ing of futures, options on futures, spot contracts and related interests. In support of the requested relief, you make the following representations:

1. "Y" will be organized and operated outside of the
   United States;
2. "Y" will not hold meetings or conduct administrative
   activities within the United States; 1./ By letter dated October 22, 1991, the Division granted similar relief to "X" with respect to its operation of (the "Prior Fund") . You state that the Prior Fund never commenced operations and that "X" now intends to form and operate "Y" rather than the Prior Fund. The relief granted herein, therefore, supersedes and makes null and void the relief granted to "X" in our October 22, 1991 letter.