Managed Futures, Commodity Trading Advisors

(D) Comply with all other requirements applicable to pool Disclosure Documents under part 4. The pool operator may satisfy the requirement of § 4.26(b) to attach to the Disclosure Document a copy of the pool’s most current Account Statement and Annual Report if the pool operator makes such Account Statement and Annual Report readily accessible on an Internet Web site maintained by the pool operator. (iv) In the case of § 4.23(a) (10) and (11), to exempt the pool operator from the requirements of those sections with respect to the pool. (iii) A good faith and reasonable attempt was made to comply with all applicable terms, conditions and requirements of § 4.7.

(1) Pool means any investment trust, syndicate or similar form of enterprise operated for the purpose of trading commodity interests. (C) Agrees to keep such required books and records open to inspection by any representative of the Commission, the National Futures Association, or the United States Department of Justice in accordance with § 1.31 of this chapter. (iv) The applicable subparagraph of paragraph (b) of this section pursuant to which such entity is a qualifying entity. Some societies use Oxford Academic personal accounts to provide access to their members. They involve a standardized contract to buy or sell a certain security at a specific price and at a specified time in the future.

Khrom Capital Master Feeder Hedge Fund Restructure

The placement of contingent orders by you or broker, or trading advisor, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders. The high degree of leverage that is often obtainable in commodity interest trading can work against you as well as for you. Optimus Futures, LLC is not affiliated with nor does it endorse any trading system, methodologies, newsletter or other similar service. The term managed futures describes an industry comprised of professional money managers known as commodity trading advisors (CTAs).

We spare no effort in finding CTA’s that we feel offers the potential for good returns while also employing good risk management strategies. We use very specific criteria when recommending Commodity Trading Advisors, including a disciplined investment approach, a positive track record and a strong management team. Registration requires CTAs to advise on all forms of commodity investments.

Commodity trading advisors definition

Most managed futures strategies display trend-following and momentum-type systematic trading features, which result in adopting a long-short portfolio approach. This chapter explains the characteristics and the growth of this commodity investing industry and provides an extensive literature review. Much of the literature finds that managed futures investing through CTAs provides excellent diversification benefits and performs well, especially in crisis times. Conversely, the non-uniformity of the databases and indices used in these studies lead to several biases. Some recent studies that directly address these shortcomings question the performance persistence of CTAs after fees. A commodity trading advisor (CTA) is an individual or firm who advises a customer on buying and selling of futures contracts or options on futures, or certain foreign exchange contracts.

• (4) A subsidiary ledger or other equivalent record for each participant in the pool showing the participant’s name and address and all funds, securities and other property that the pool received from or distributed to the participant.
• A commodity pool operator or commodity trading advisor may present to the Commission proposals regarding any alternative method of addressing the effect of additions and withdrawals on the rate of return computation, including documentation supporting the rationale for use of that alternate method.
• (3) Any exemption claimed hereunder shall cease to be effective upon any change which would cause the commodity pool operator of an exempt pool to be ineligible for the relief claimed with respect to such pool or which would cause a commodity trading advisor to be ineligible for the relief claimed.
• The provisions of section 4o of the Act shall apply to any person even though such person is exempt from registration under this part 4, and it shall continue to be unlawful for any such person to violate section 4o of the Act.

Here you will find options to view and activate subscriptions, manage institutional settings and access options, access usage statistics, and more. Our free CTA database provides comprehensive insight into the industry’s leading managed futures programs. In 1922, the Grain Futures Act was passed, regulating futures trading. It was later replaced by the Commodity commodities trading advisor Exchange Act of 1936, which further regulated commodities and futures trading and required certain trading to be done on exchanges. This article describes that growth and discusses our “top 5 list” of reasons why investors should be interested in managed futures investments. Management fees are often around 2%, but can be lower or higher, depending on the CTA.

RISK DISCLOSURE STATEMENT

(3) The notice will be effective upon filing, provided the notice is materially complete. (B) A description of the criteria pursuant to which it qualifies for such exemption from registration. (ii) The total gross capital contributions it receives for units of participation in all of the pools it operates or that it intends to operate do not in the aggregate exceed $400,000. (i) Any claim of exemption effective hereunder shall be effective only with respect to the pool for which it has been made. (1) The Commission may exempt any person or any class or classes of persons from any provision of this part 4 if it finds that the exemption is not contrary to the public interest and the purposes of the provisions from which the exemption is sought.

(C) Owns a portfolio comprised of a combination of the funds or property specified in paragraphs (a)(1)(v)(A) and (B) of this section in which the sum of the funds or property includable under paragraph (a)(1)(v)(A), expressed as a percentage of the minimum amount required thereunder, and the amount of futures margin and option premiums includable under paragraph (a)(1)(v)(B), expressed as a percentage of the minimum amount required thereunder, equals at least one hundred percent. An example of a composite portfolio acceptable under this paragraph (a)(1)(v)(C) would consist of $1,000,000 in securities and other property (50% of paragraph (a)(1)(v)(A)) and $100,000 in exchange-specified initial margin and option premiums (50% of paragraph (a)(1)(v)(B)). A money manager’s role is to help clients reach their financial goals, buy and sell securities on their clients’ behalf, and measure performance and report to regulators in lieu of their client. CTAs focus their advice on commodities and futures, while also assisting their clients with their financial goals. Individuals with the designation will be able to pursue the business they are interested in.

What is a Commodity Trading Advisor?

Nothing set forth in §§ 4.21, 4.24, 4.25 or § 4.26 shall relieve a commodity pool operator from any obligation under the Act or the regulations thereunder, including the obligation to disclose all material information to existing or prospective pool participants even if the information is not specifically required by such sections. (1) The Statement of Operations required by this section must itemize brokerage commissions, management fees, advisory fees, incentive fees, interest income and expense, total realized net gain or loss from commodity interest trading, and change in unrealized net gain or loss on commodity interest positions during the pool’s fiscal year. Gains and losses on commodity interests need not be itemized by commodity or by specific delivery or expiration date.