Series 3 - National Commodities Futures
Regulations - Commodity Pool Operators And Commodity Trading Advisors
Commodity Pool Operators And Commodity Trading Advisors
Disclosure Documents
CPOs and CTAs must disclose to their prospective customers:
Records to be maintained
In addition to the usual financial records, CPOs and CTAs must also maintain a written record of any so-called "alternative execution." These fall into two categories:
Disclosure Documents
CPOs and CTAs must disclose to their prospective customers:
- all upfront fees,
- performance records,
- trading strategy,
- five-year business background of principals, and
- any conflicts of interest.
Records to be maintained
In addition to the usual financial records, CPOs and CTAs must also maintain a written record of any so-called "alternative execution." These fall into two categories:
- A "block trade" is a large transaction that is negotiated away from the exchange, but executed on the exchange's floor. The CFTC retains the right to regulate block trades on a case-by-case basis.
- A "bunched order" is an order entered on behalf of multiple customers.
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