. ' 

DIVISION OF 

TRADING AND MARKETS 

COMMODITY FUTURES TRADING COMMISSION 

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

(202) 264--8955 

(202) 254-3534 FACSIMILE 

April 20, 1992 

Re: -- Request for Interim Relief 

Pending Final Action on Proposed Rule 4.7 

Dear 

This is in response to your letter dated March 11, 1992, 

wherein, on behalf of , you 

request relief from certain requirements contained in Part 4 of 

the Commission's regulati£?s, pending final action by the Commission on proposed Rule 4.7- • 

Based upon the representations made in your letter, we 

understand the pertinent facts to be as follows. was 

registered as a commodity trading advisor ("CTA") on October 11, 

1991. As of the date of your letter, has not offered 

commodity interest advisory or management services. intends 

to offer these services to institutioQal and other large clients 

who meet the standards set forth for "qualified eligible clients" 

in proposed Rule 4.7 and commodity pools operated by registered 

commodity pool operators ("CPOs") who may be granted interim 

relief under proposed Rule 4.7 (collectively the "Rule 4.7 

Clients"). Pending final action on proposed Rule 4.7, you 

request interim relief on behalf of from the disclosure 

requirements of ~u~' 4.31 and from certain recordkeeping requirements· of Rule 4.32- as provided in paragraphs (c)(l) (i) and 

(c)(l)(ii) of proposed Rule 4.7. In connection with your request, you have provided the Division with the representations 

required by proposed Rule 4.7(c)(2) for aCTA claiming relief 

thereunder. 

Based on the foregoing, the Division will not recommend that 

the Commission take any enforcement action against for 

1/ Proposed 

3148 (January 1992. 

Rule 4.7 was published for comment in 57 Fed. Reg. 

28, 1992). The comment period closed.on March 30,. 

:6.1 Commission rules referred to herein are found at 17 C.F.R. Ch. 

I (1991). 
. . . 

Page 2 

failure to comply with Rules 4.31 and 4.32 if complies with 

the requirements of proposed Rule 4.7(c) with respect to its Rule 

4.7 Clients. This relief is, however, subject to the condition 

that upon final action by the Commission on proposed Rule 4.7, 

will submit to the Division the notice of claim for relief 

required by Rule 4.7 and will comply with the terms and conditions of that notice and the provisions of Rule 4.7 as adopted, 

which will be deemed to supersede the relief granted herein. 

That notice must be filed within 30 days following the effective 

date of Rule 4.7. In addition, if has provided advice under 

proposed Rule 4.7 to clients or pools that do not meet the 

criteria set forth in adopted Rule 4.7 for qualified eligible client~ and pools or if Rule 4.7 is not adopted or the relief set 

forth in the proposed rule is for any reason unavailable under 

the rule as adopted, will: (1) promptly provide the Division and the National Futures Association with the names of such 

clients and pools and the CPOs thereof; (2) promptly commence 

making and keeping the records required by Rule 4.32 with respect 

to these clients and pools; (3) provide such clients and the CPOs 

of such pools with the Disclosure Document required by Rule 4.31 

within forty-five days of the date of either announcement by the 

Commission that it has determined not to adopt Rule 4.7 or 

publication in the Federal Register of the release announcing the 

adoption of Rule 4.7; and (4) provide such clients and the CPOs 

of such pools the right to terminate their advisory agreement 

with for a period of thirty days following their receipt of 

.the Disclosure Document required by Rule 4.31. 

We note that this letter does not excuse from any other 

applicable requirements contained in the Commodity Exchange Act 

(the "Act") or the Commission's regulations issued thereunder. 

For example, it remains subject to the anti-fraud provisions of 

Section 4Q of the Act, 7 u.s.c. S 6Q (1988), the reporting 

requirements for traders set forth in Parts 15, 18 and 19 of the 

regulations, and to all other provisions of Part 4. 

This letter is based on the representations that have been 

made to us and is subject to compliance with the conditions set 

forth above. Any different, changed or omitted 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 's operations change from those as represented to 

us. 

Further, this letter represents the position of the DiVision 

of Trading and Markets only. It does not necessarily reflect the 

views of the Commission or of any other office or division of the 

Commission. 
. . . 

Page 3 

If you have any questions concerning this correspondence, 

please feel free to contact me or Susan C. Ervin, the Division's 

Chief Counsel, at (202) 254-8955.