What is a commodity pool operator?
A Commodity Pool Operator (CPO) is a firm that has met the requirements of the Commodity Futures Trading Commission (CFTC) for trading managed futures products on behalf of clients in a pooled account. CPO firms are required to register with the CFTC and become members of the NFA. CPO firms are subject to periodic audits of their practices, procedures and published performance results by the NFA.
A commodity pool operator (CPO) is defined as “any person engaged in a business which is of the nature of an investment trust, syndicate, or similar for of enterprise, and who, in connection therewith, solicits, accepts, or receives from others, funds, securities, or property, either directly or through capital contributions, the sale of stock or other forms of securities, or otherwise, for the purpose of trading in any commodity for future delivery or commodity option on or subject to the rules of any contract market.” In most cases, commodity pools are organized as limited partnerships, with the general partner as the its CPO.
