RegAlert1996-07-08 | CFTC Staff Letter 96-56Added · Updated
CFTC Staff Letter 96-56: Denial of No-Action Request for CTA Registration Relief
The Division of Trading and Markets denies a request for relief from Commodity Trading Advisor registration for a company and its owner who produce and distribute materials on commodity interest trading for a fee. The Division determines that the materials provide specific advice on market conditions and signal when to trade, thereby constituting the business of advising others under Section 4m(1) of the Commodity Exchange Act. Consequently, the company is required to register as a CTA, and the individual must be listed as a principal and registered as an associated person. The letter warns that failure to comply with these registration requirements and the use of misleading marketing materials may result in enforcement proceedings or other Commission actions.
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- 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 July 8, 1996 Re: Request for Relief from Registration as Commodity Trading Advisors under Section 4m(1) of the Commodity Exchange Act with Regard to Producing and Distributing Materials on Commodity Interest Trading This is in response to your letter dated April 29, 1996, to the Division of Trading and Markets ("Division") of the Commodity Futures Trading Commission ("Commission"). By your correspondence, you request on behalf of "Company" and "A" relief from registration as commodity trading advisors (;"CTAs") under Section 4m(l) of the Commodity Exchange Act ("Act").l with respect to producing and distributing materials on commodity interest trading. Based upon the representations contained in your letter, as supplemented by the written materials that the Company distributes to persons interested in commodity interest trading, we understand the relevant facts to be as follows. Neither the Company nor "A" currentl y is registered with the Commission in any capacity. The Company publishes "U" and 11 V11 , and the Company distributes them for a fee to students/subscribers ("W11 ) as part of "X". Although "U", written by "B", does include general information on trading in commodity interests and approximately one hundred pages of detailed information on price forecasting using technical analysis, it also provides specific advice on market conditions that signal when persons should trade in the futures markets. In addition, 11 U" and "V" promote the Company's; hotline and newsletter services as an integral part of the "X".~ .l/ 7 U.S.C. § 6m(1) (1994). Commission rules referred to herein are f ound at 17 C.F.R. Ch. I (1995), as amended Qy 60 Fed . Reg. 38,146 (July 25, 1995). 2./ "U" also specifical ly, and s trongly, recommends that "W" use "Y", a registered gua rant e ed introducing broker, for their brokerage needs. You represent tha t this recommendation is b a sed (continue d ... )
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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
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CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.