COMMODITY FUTURES TRADING COMMISSION 

2033 K STREET, N.W., WASHINGTON, D.C. 20581 

(202) 254-8955 

(202) 254-3534 FACSIMILE 

DIVISION OF 

TRADING AND MARKETS April 12, 1991 

Re: 

Request for Temporary Floor Broker Relief 

Dear 

This is in response to your letter dated March 6, 1991, in 

which you request a "no action" position for 

(the "Applicant"), ~n employee of . ~ . , a partnership which buys and sells securities for 

its own account on all major securities exchanges and stock index 

contracts on u.s. futures exchanges. ~ does no public 

customer business. Specifically i you request that the Applicant be 

allowed to trade in commodity interests on behalf of 

prior to the effectiveness of his registration as a floor broker 

( II FB II ) • 

In support of this request, by your letter you make, among others, the following representations: 

(1) the Applicant will only be permitted to 

trade for the proprietary account of 

He is not perrni tted to 

trade for his own accounts nor for the 

accounts of others; 

( 2) the Applicant recently applied to the 

National Futures Association ( "NFA") for 

registration as a floor broker pending receipt of reports from the Federal 

Bureau of Investigation ("FBI") and was 

assigned NFA ID No, NFA has advised you that ' fingerprints 

were sent to the FBI on February 20, 

1991; 

( 3) has no knowledge of facts 

that would constitute a statutory dis-
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qualification under the Commodity Exchange Act ("Act") of the Applicant;l.l 

(4) is not engaged in any public 

customer business; it is not a vehicle 

for public participation in either securities or commodity interests; and it 

does not sell partnerships or any other 

interests to 'the public; and 

( 5) assumes full financial responsibility for the trades of the Applicant on the Chicago Mercantile Exchange 

("CME"). 

In support of your request, you also note that the Applicant will have no contact with the general public and that, unlike the 

case with associated persons of futures commission merchants and 

introducing brokers who may solicit and accept customer orders, a 

temporary license to enable him to act as a floor broker is 

unavailable. 

Based upon the foregoing, and as you have requested, we 

believe that the relief which you request with respect to proprietary trading of the Applicant pending his registration as a floor 

broker has merit. Accordingly, the Division of Trading and Markets 

will not recommend that the Commodity Futures Trading Commission 

(the "Commission"} take any enforcement action against the 

Applicant, or the Chicago Mercantile Exchange based 

solely upon the Applicant's trading on the CME for 's 

proprietary account prior to the effectiveness of the Applicant's registration as an FB. 

We note that this letter does not excuse the Applicant or 

from compliance with any applicable requirement 

contained in the Act or in the Commission's regulations promulgated thereunder other than the requirement of floor broker registration 

in Section 4e of the Act. The temporary no action position which 

we have taken herein applies solely to the Applicant in connection 

with his transactions for the proprietary account of , and will expire at the earlier of: sixty days from the date of 

this letter or the date at which his FB registration is granted. 

1.1 For the purposes of our position, we are deeming the term 

"statutory disqualification'' to refer to Sections 8a(2) and 8a(3) 

of the Act, 7 U.S.C §§ 12a(2) and 12a(3) (1988). 
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This letter is based upon the representations that have been 

made to us and is subject· to strict·compliance with those representations. Any different, omitted or changed facts or circumstances might require us to reach a different conclusion. In this 

connection,, we request that you notify us immediately in the event 

that the activities of or of the Applicant change in 

any way from those as represented to us. Further, this letter 

represents the position of this division of the Commission only and 

does not necessarily represent the views of the Commission or of 

any other office or division of the Commission. 

truly yours, 

. e. t;_ 

'us an c. Ervin 

Chief Counsel