CFTC Staff Letter 95-93: No-Action Relief from CTA Registration for Advisory Services to General Partners

U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-5430 Facsimile: (202) 418-5536 DIVISION OF 1RADING & MARKETS Dear November 15, 1995 Re: Request for Interpretation of Exemption from Registration as a CTA in Section 4m(1) of the Commodity Exchange Act This is in response to your letter dated September 15, 1995 to the Division of Trading and Markets ( 11 Division 11 ) of the Commodity Futures Trading Commission ( 11 Commission 11 ), as supple￾mented by telephone conversations with Division staff, by which you inquired whether you must register as a commodity trading advisor ( 11 CTA. 11 ) under Section 4m(1) of the Commodity Exchange Act (the 11 Act")1.1 in connection with providing the services de￾scribed below. Facts. Based upon the representations made in your letter, as supplemented, we understand the relevant facts to be as follows. 11 X11 is a sole proprietorship, operated by you. Neither you nor 11 X11 is currently registered as a commodity pool operator ("CP0 11 ) or a CTA. However, you are the general partner and CPO of "Y 11 , a commodity pool you operat~ pursuant to an exemption under Rule 4.13(a) (2) ( 11 Y" Pool 11 ) .2.1 You represent that the 1./ 7 U.S.C. § 6m(1) (1994). Commission rules referred to hereinafter are found at 17 C.F.R. Ch. I (1995). 2_/ Rule 4.13(a) (2) provides that a person who operates a commodity pool is not required to register as a CPO if: (1) the total gross capital contributions the person receives in all the pools the person operates or intends to operate do not in the aggregate exceed $200,000; and, (2) none of the pools operated by such person has more than 15 participants at any time. In order to obtain the exemptive relief, a person must meet the above criteria and also comply with the filing, disclosure and other requirements of the rule. Our records reflect that on date, 1994, the Division re￾ceived a filing made pursuant to Rule 4.13(a) (2) regarding your operation of the nyn Pool.