For purposes of this definition, if the stated notional amount of a swap is leveraged or enhanced by the structure of the swap, the calculation shall be based on the effective notional amount of the swap rather than on the stated notional amount. (i) Solely with respect to a swap that is traded on or subject to the rules of a designated contract market, swap execution facility, or foreign board of trade, an index that becomes a narrow-based security index under paragraph (2) of this definition solely because it was a narrow-based security index for more than 45 business days over three consecutive calendar months shall not be a narrow-based security index for the following three calendar months. This term means and includes any individual, association, partnership, corporation, trust or other person that is engaged in the business of offering to enter into, entering into or confirming the execution of leverage contracts, or soliciting or accepting orders for leverage contracts, and who accepts leverage customer funds (or extends credit in lieu thereof) in connection therewith. This term means an agreement of guarantee in the form set forth in part B or C of Form 1–FR, executed by a registered futures commission merchant or retail foreign exchange dealer, as appropriate, and by an introducing broker or applicant for registration as an introducing broker on behalf of an introducing broker or applicant for registration as an introducing broker in satisfaction of the alternative adjusted net capital requirement set forth in § 1.17(a)(1)(iii). All registered CTAs who manage or exercise discretion over customer accounts or provide commodity trading advice based on, or tailored to, the commodity interest or cash market positions or other circumstances or characteristics of particular clients must be NFA Members.

This term references both a Cleared Swaps Customer Account and a Futures Account, as defined in this section. An account shall be deemed to be controlled by a person if such person by power of attorney or otherwise actually directs trading for such account. This term includes sales, purchases, agreements of sale or purchase and agreements to sell or purchase. This term has the meaning provided in § 22.1 of this chapter.

Top 10 Commodity Trading Advisors of 2022

(3) Be filed by a representative duly authorized to bind the person. To register as a CTA, visit the CTA registration page. Choose this option to get remote access when outside your institution. Shibboleth / Open Athens technology is used to provide single sign-on between your institution’s website and Oxford Academic. Typically, access is provided across an institutional network to a range of IP addresses.

However, CTAs who wish to actively manage client funds must register with the NFA as a CTA. An individual can register as a CTA only with the Commodity Futures Trading Commission (CFTC) and not the NFA. (ii) Solely with respect to a security-based swap that is traded on a national securities exchange or security-based swap execution facility, an index that becomes a security index that is not a narrow-based security index under paragraph (3) of this definition solely because it was not a narrow-based security index for more than 45 business days over three consecutive calendar months shall be a narrow-based security index for the following three calendar months. (v) No presumption shall arise that a person commodities trading advisor is required to perform the calculations needed to determine if it is a major swap participant, solely by reason that the person does not meet the conditions specified in paragraph (6)(i), (ii) or (iii) of this definition. (2) The sum of the amount calculated under paragraph (6)(iii)(B)(1) of this definition and the product of the total effective notional principal amount of the person’s swap positions in all major swap categories multiplied by 0.15 is less than $1 billion. A person that is a major swap participant shall be deemed to be a major swap participant with respect to each swap it enters into, regardless of the category of the swap or the person’s activities in connection with the swap.

Learn about CTA Member Requirements

You should review the cta’s disclosure document and study it carefully to determine whether such trading is appropriate for you in light of your financial condition. The CFTC has not passed upon the merits of participating in the trading programs described on this website nor on the adequacy or accuracy of the CTA’s disclosure document. The information contained on this website has been prepared by iasg from sources deemed reliable, but IASG does not guarantee the adequacy, accuracy or completeness of any information.

(B) The aggregate potential outward exposure for each of the person’s swap positions in such major swap category that are either subject to daily mark-to-market margining or are cleared by a registered or exempt clearing agency or derivatives clearing organization, as calculated in accordance with paragraph (3)(iii) of this definition. A commodity trading advisor (CTA) is an individual or organization that, for compensation or profit, advises others, directly or indirectly, as to the value of or the advisability of buying or selling futures contracts, options on futures, retail off-exchange forex contracts or swaps. Direct advice includes exercising trading authority over a customer’s account or providing commodity trading advice based on, or tailored to, the commodity interest or cash market positions or other circumstances or characteristics of particular clients. Indirect advice includes  giving advice through written publications or other media.

Exemptions

(6) With respect to a contract that the Commission determines is a significant price discovery contract, any electronic trading facility on which the contract is executed or traded. This term does not include any sale of a cash commodity for deferred shipment or delivery. (vi) A person predominantly engaged in activities that are in the business of banking or financial in nature, as defined in section 4(k) of the Bank Holding Company Act of 1956, 12 U.S.C. 1843(k).

The person must keep such representation in accordance with § 1.31. (i) An agreement, contract, or transaction that is willfully structured to evade any provision of Subtitle A of the Wall Street Transparency and Accountability Act of 2010, including any amendments made to the Commodity Exchange Act thereby (Subtitle A), shall be deemed a swap for purposes of Subtitle A and the rules, regulations, and orders of the Commission promulgated thereunder. (iii) For purposes of section 1a(47)(E) of the Commodity Exchange Act and this definition, the term foreign exchange forward has the meaning set forth in section 1a(24) of the Commodity Exchange Act. (ii) The term swap does not include an agreement, contract, or transaction described in paragraph (2)(i) of this definition that is otherwise excluded by section 1a(47)(B) of the Commodity Exchange Act. (2) Daily average aggregate potential outward exposure. (B) Daily average aggregate potential outward exposure.

S&P Futures

There are various opinions of what defines emerging and what defines established. Emerging managers typically have less than a three-year track record and less than $50 million in assets under management. At first glance, it might seem that the only difference between an emerging and established CTA is their experience levels.

(1) For futures and commodity option positions, this term means the credit balance which would be obtained by combining the margin balance of any person with the net profit or loss, if any, accruing on the open futures or commodity option positions of such person. Meaning of “issuers of securities in a narrow-based security index” as used in the definition of “security-based swap” as applied to index credit default swaps. (2) Maintains a substantial position in outstanding swaps in any major swap category. (iv) Representing accruals (including, for purchasers of a commodity option for which the full premium has been paid, the market value of such commodity option) to a futures customer.