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There are at least three types of CTAs. First is a publishing CTA. A
newsletter writer or the publisher of a website that offered commodity
information would be examples of someone in this category. A publishing CTA
registers as such with the CFTC through the NFA, but does not have to become a
member of the NFA.
Secondly would be a CTA who manages money. This CTA is a member of the NFA
and must comply with all NFA rules and regulations. This includes producing a
disclosure document which outlines personal background, employment history and
their trading record.
Lastly is a recommending CTA. This CTA tracks the performance of other CTAs
and recommends other CTAs to investors. I believe this CTA is also a member
of the NFA.
A CPO is a Car Pool Operator. Michael Jordan is now a CPO.
Just Kidding. :-) A CPO is a Commodity Pool Operator. A CPO is registered
with the NFA as such and solicits money from investors to be placed in a pool.
The pool of money is then managed by one, or more, CTAs. A CPO might be a CTA
themselves.
A CPO will take a slice of the management fees and maybe a slice of the
incentive fees, I believe.
I am sure you can find out more information about them if you visited the NFA
website (www.nfa.futures.org) or if you e-mailed them and requested
information.
Regards,
John J. Lothian
Disclosure: Futures trading involves financial risk, lots of it!
In a message dated 1/30/99 7:37:46 PM Central Standard Time, a.myers@xxxxxxxx
writes:
<< Recently there was a discussion about CTA's on this list. It has always
been my understanding that managed futures funds were managed by CTA's. I
thought that the CPO (Commodity Pool Operator) was just an old or rarely
used designation still on the books (or something like that).
What is the difference? Is it that a CTA can advise AND invest AND write a
newsletter whereas a CPO can only manage money???
Just curious.
~Alan
>>
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