CFTC Staff Letter 99-40: Exemption for CPO to Maintain Books and Records at Trading Manager's Office

99-40
CFTC Letter No. 99-40
August 5, 1999
Exemption
Division of Trading & Markets
Re: Request for Exemption from Rule 4.23(a).
Dear :
This is in response to your letter dated May 19, 1999, to the Division of Trading and Markets ( Division ) of the Commodity Futures Trading Commission ( Commission ), as supplemented by your facsimile dated May 27, 1999 and telephone conversations with Division staff, concerning S , a registered commodity pool operator ( CPO ), and its operation of commodity pools to which T acts as Trading Manager and provides administrative services (the Pools ). By your correspondence, you request an exemption from the requirement that the books and records set forth in Rule 4.23(a)1 must be maintained at S s main business office in accordance with Rule 1.31 so that these books and records may be maintained at T s main business office. 2 Based upon the representations you have made in your correspondence, we understand the facts to be as follows. S s main business office is located in Massachusetts. 3 Pursuant to the Trading Manager Agreement for each Pool, among other things T prepares such books and records and provides such administrative and compliance services as are required by law or regulation in connection with the operation of the Pools.4 T s main business office is located in New York.5 T is itself a registered CPO. It also is a registered commodity trading advisor. In support of your request you explain that:
T was the CPO of the Pools until March 1, 1999. T withdrew as general partner and CPO to divest itself of control of the Pools in order to comply with certain regulations affecting bank holding companies. Those regulations do not prohibit T from performing the functions it has undertaken as Trading Manager of the Pools. file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/99letters/tm99-40.htm (1 of 3) [5/6/2010 7:14:15 PM]