RegAlert1995-05-01 | CFTC Staff Letter 95-51Added · Updated
CFTC Staff Letter 95-51: No-Action Regarding IB Registration for Information Services Subsidiary
The Division of Trading and Markets concludes that a subsidiary providing market information services acts as an introducing broker when facilitating a credit arrangement with a futures commission merchant, thereby requiring registration under Section 4d(1) of the Commodity Exchange Act. The Division will not recommend enforcement action against the parent company or its subsidiary for failing to register as an introducing broker, provided the subsidiary registers as a commodity trading adviser and lists the parent as a principal. This no-action stance applies specifically to the described business arrangement and does not excuse compliance with other applicable Act requirements.
CFTC published 6 documents in the last 30 days — get each new one by email the day it lands.
COMMODITY FUTURES TRADING COMMISSION 2033 K Street, NW, Washington, DC 20581 (202) 254- 8955 (202) 254-8010 Facsimile DIVISION OF TRADING AND MARKETS Dear May 1, 1995 Re: Request for Interpretation Regarding Scope of Registration Requirements Under Section 4d(1) of the Commodity Exchange Act This is in response to your letter dated February 8, 1995 to the Division of Trading and Markets ("Division") of the Commodity Futures Trading Commission ("Commission") , as supplemented by additional communications with Division staff, in which you request an interpretation as to whether a proposed business arrangement between "W" and "X" would require "W" to register as an introducing broker ( 11 IB 11 ) • Based on the representations made in your letter and in subsequent communications with the Division staff, we understand the pertinent facts to be as follows. "X" is a registered futures commission merchant ("FCM") and a member of the National Futures Association. Pursuant to negotiations between "X" and "W", a business arrangement has been proposed between the two companies. "W", through its separately incorporated subsidiary "Y", offers two satellite-delivered services, "z1 " services", to farmers and traders via their personal computers.~ These services offer a wide array of market news, commentary, charting capability, weather information and ten-minute snapshot quotes from commodity exchanges other than those located in New York . .2. Subscribers ~/ "W" has four subsidiaries. "W" and its subsidiaries provide customers with a wide range of information and data of interest to participants in the futures markets through a variety of means including publications such as "V" . .2./ In addition to the "Z" services, "Y" publishes a weekly newsletter that reports and analyzes news affecting markets and prices and contains buying and selling strategies for grain, wheat, oilseeds, cotton, pork and beef producers. "Y" also runs a twenty- ( continued ... )
Read the rest free, and get an email when CFTC publishes again
Lineage: In force
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
More like this from CFTC
CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.