January 25, 1991
TO: SEC RULES COMMITTEE NO. 8-91
RE: PROPOSED AMENDMENTS TO CFTC RULE 4.5
__________________________________________________________
The Institute recently submitted to the Commodity Futures
Trading Commission ("CFTC") the attached letter proposing
amendments to CFTC Rule 4.5. As you know, Rule 4.5 provides an
exclusion from the definition of and need to register with the
CFTC as a commodity pool operator for certain qualifying
entities, including registered investment companies, provided
certain conditions are met. The Institute’s letter stated that
Rule 4.5 in its current form unduly inhibits the use by
registered investment companies of futures and options
strategies. The Institute proposed that the exclusion from
commodity pool operator registration should be available for any
registered investment company that invests primarily in
securities such that, over time, its primary risks are
attributable to securities investments (rather than transactions
in options and futures).
We will keep you informed of developments.
Frances M. Stadler
Assistant General Counsel
Attachment
cc: Robert I. Frenkel, Dreyfus
Peter Hanson, The New England
David Jones, Fidelity Mgmt & Research
Gary MacDonald, Wellington Management Co.
Paul Wallace, Eaton Vance Corp.