DEFINITION of 'Commodity Pool Operator - CPO'

Persons or limited partnerships responsible for investing a commodity pool's assets in commodity-futures and options positions. Commodity pool operators solicit funds for trading in securities such as futures contracts, or off exchange foreign exchange contracts.

BREAKING DOWN 'Commodity Pool Operator - CPO'

CPOs typically hire Commodity Trading Advisors (CTA) to make investment decisions for the pool. They require registration in most circumstances and must be a member of the National Futures Association.

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