CFTC Staff Letter 96-27: No-Action Relief from CPO Registration for General Partners of Converted Fund

/
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 TRADING & MARKETS Dear February 20, 1996 Re: Section 4m(1): Request for Relief from Commodity Pool Operator Registration Requirements This is in response to your letter dated December 29, 1995 to the Division of Trading and Markets ("Division") of the Commodity Futures Trading Commission ("Commission"), as supplemented by telephone conversations with Division staff. By your letter you request on behalf of "U" relief from the CPO registration require￾ments in connection with the conversion of "U" from a general partnership to an Illinois limited partnership to be named the "Fund", as explained more fully below. Based upon the representations contained in your letter, as supplemented, we understand that the facts are as follows. "U" is a private investment partnership that principally invests in securities and non-U.S. regulated futures and options on futures. The sole general partners of "U" are "V" and "W", both of which are Illinois corporations. The sole principal of "V" is "A" and the sole principal of "W" is "B" (collectively the "Principals"). Both "A" and "B" are former floor traders at the Chicago Board of Trade ( 11 CBOT11 ) a,nd are currently registered with the Commission as floor brokers):.! "A" and "B" combined have in excess of twenty-five 1./ "A" has been trading for his own account at the CBOT since
1980. "A's 11 trading was concentrated primarily on the U.S.
treasury bond futures contract. You state that he has traded other interest rate futures and options contracts for his own account for more than five years. You state that since approximately 1990, "A11 has dedicated much of his time to off-floor activities, including a number of venture capital and real estate projects as well as the trading activities of "U". "A" was previously registered with the Commission as an associated person from 1976 through 1980. "B11 has been a member of the CBOT since 1981. He has traded U.S. treasury bond futures for his own account since 1978 and also has traded other interest rate futures and options contracts for his own account for more than five years.