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See the NFA publication "A Guide to CFTC Registration and NFA Membership".
It says you don't need to register as a CTA if you have 15 or fewer clients.
If the 401k can be considered as a single client or if there are 15 or fewer
employees in the 401k, I think you are exempt from registration.
Another regulatory issue is that 401k plans are probably covered by the
Employee Retirement Income Security Act (ERISA). ERISA requires fiduciaries
to invest in a prudent and diversified way. Speculating in futures may not
fit the judge's definition of "prudent" if you lose money and the 401k
participants get litigious. For this reason the Schindler Fund commodity
pool we manage does not take qualified retirement funds.
I'd seek professional advice from a securities lawyer before taking on 401k
funds. The Managed Funds Associaton (MFA; www.mfainfo.org) or your local
bar association can help you find a securities lawyer.
Regards,
Aaron Schindler, CFA
Schindler Trading
1243 Yorkshire Lane
Barrington, IL 60010
telephone: 847-719-2846
fax: 847-719-2846
email: aaron@xxxxxxxxxxxxxxxxxxxx
www.schindlertrading.com
----- Original Message -----
From: "Jim Loftus" <pal9885@xxxxxxxxx>
To: <Omega-list@xxxxxxxxxx>
Sent: Sunday, September 01, 2002 7:19 AM
Subject: Off topic - CTA
>
> Can anyone tell me if it is OK for me, as an employee, to trade the
> company's 401(k) money without becoming a CTA ? I'm not an officer,
> director or shareholder of the company. The 401(k) plan has a provision
(or
> can be modified) to allow trading futures contracts.
>
> I've looked at a dozen websites with CFTC regulations and references and I
> can't find a simple sentence that says 'its OK for an employee to trade
the
> company's 401(k) plan'.
>
> If there's a simple answer, or a place to find it, I would appreciate the
> help.
>
> thanks,
>
>
> Jim
>
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