What is a Commodity Trading Advisor?

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What is a Commodity Trading Advisor?

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A Commodity Trading Advisor (CTA) 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 individually managed accounts. CTA firms are required to register with the CFTC and become members of the NFA. CTA firms are subject to periodic audits of their practices, procedures and published performance results by the NFA.

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Commodity trading advisors are licensed financial professionals who assist investors in the buying and selling of commodities. More specifically, the commodity trading advisor often functions as a money manager within the context of the futures market. Depending in the working arrangement between the investor and the commodity trading advisor, futures trading may be conducted on behalf of the client at the discretion of the advisor, of as a result of interaction between the investor and the advisor. The commodity trading advisor is well versed in how commodity trading works. Along with understanding the structure and operation of commodity markets, the advisor will also have a solid understanding of the underlying commodities themselves. This means the effective commodity trading advisor will understand the current status of worth associated with the metals, grains, and foodstuffs that are commonly traded as commodities. The advisor will also be able to competently project the upward o

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Genuine Trading Solutions is duly registered with the Commodity Futures Trading Commission, CFTC as a Commodity Trading Advisor (CTA). We have two primary business profiles. The first is to analyze and implement a Hedging strategy designed to reduce exposures brought about by Operational or Market Risk. This is done by using exchange traded and OTC derivatives to Hedge exposure to Interest Rates, Indices, Currency and base Commodities. In this field we have a strategic focus in the energy sector with greenhouse gases including CO2 Carbon Emission Credits. The second is to trade and manage the Global Climate Fund. This ethically minded pooled asset fund is focused on generating returns from the reduction of greenhouse gases and emission credits. Our clients are Hedge Funds, mutual funds, pension funds, endowments, corporations, trusts and select individual investors. Our services as a Commodity Trading Advisor are most often requested to reduce or manage adverse circumstances brought ab

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The National Futures Association (NFA) defines a Commodity Trading Advisor as an individual or firm that directly or indirectly advises clients on buying or selling futures or options contracts. These professional money managers, which must be registered with the Commodity Futures Trading Commission (CFTC), are ultimately compensated by sharing in performance and/or charging a management fee.

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Person who manage separate accounts for each client are required to register as a commodity trading advisor (CTA). A CTA is defined as “any person who, for compensation or profit, engages in the business of advising others, either directly or through publications, writings or electronic media, as to the advisability” of buying or selling commodity futures or option contracts. Persons meeting this definition are required to register as a CTA unless they have: provided advice to 15 or fewer persons during the past 12 months and do not generally hold themselves out to the public as a CTA; or furnishes trading advice solely to a commodity pool (or pools) of which they are the registered CPO or are exempt from CPO registration; or is in one of a number of businesses or professions listed in the Commodity Exchange Act or the CFTC regulations and the providing of advice is solely incidental to the conduct of that business or profession; or is registered in another capacity and the advice is s

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