CTA in Asia?

Discussion in 'Professional Trading' started by econometrics, Oct 21, 2009.

  1. Hello, always been hearing that people start out as a CTA and build a record from there. I am based in Asia, so I guess NFA-CTA doesnt apply to me. I am wondering how can someone start out as a CTA (anythign similar) in Asia -HK?

  2. Where in Asia? You may just have to find a clearing firm, open an account and get going. Take your track record and use that to promote a managed futures program. Some places have very little regulatory oversight.

    You could have to register a company and in some Asian nations that can be expensive (requiring like a $50K investment in the country concerned, stupidly).

    If you're not in the US and your clients aren't either, you don't need to register as I understand it. Are you a US citizen? What do you trade? I may be in Asia soon for a while myself. Do you speak any Asian languages? I speak Korean (I'm not Korean though) but it's really tough finding out regulatory details.

    I know managed futures works well in Japan. Other countries, so far there's barely anything, with the good and the bad that entails.
  3. I am based in Japan and HK, can set up the firm in either country.

    What do you mean when you say CTAs work well in japan?
    Is there such thing as a CTA in japan?

    I am currently trading american stocks using a prop firm with my own and some friends' money. I would like to build a track record and considering formally setting up a LLC/LLP/Ltd entity to trade. Any idea as to how to set up a private investment vehicle in asia?
  4. a) start a limited liability corporate structure, e.g., in HK
    b) open a trading account that supports segregated sub-accounts either through some prime brokerage that caters to small start-ups or Interactive Brokers or MAN or the like
    c) depending on whom you intend to solicit you may need to register with local authorities. So, cant give you a definite answer on this

    PM me if interested I run an independent shop myself out of Asia.

    P.S. Your question about language skills is irrelevant, making money does not correlate with language skills.

  5. I know that some managed futures programs have found a lot of clients in Japan, I imagine because of the poor performance of Japanese stocks.

    Asiaprop, what you say is interesting. About the language skills, it had little to do with trading (although I can tell you that, with respect, speaking French sure can help me trade the CAC 40). Instead it had to do with finding out information and finding non-English speaking clients.
  6. well, except for HK and Singapore most prospective clients in Asia will be non-English speaking. If that seems important to you then maybe you wanna look to do business in the US/Canada or in Central Europe.

    What I meant is that language is not a hurdle at all, if your audited performance is worthy of showing around then no investor will give a rats a.. what language you speak. Since human kind began investors are on the hunt for yield thats all it counts.

  7. Asiaprop,

    your suggestions are welcome. As you are a homeplayer in Asia - which of the countries has most favorable tax regime ? And why using HK as a hub if it is SO expensive there, or am I wrong ? Singapore seems a cheaper place and Monetary Authority of Singapore seems to have some useful information on their website....

  8. definitely HK, tax wise. Corporate and also income taxes are dirt cheap, unless you are American (taxation treaty). Thats why pretty much every trading desk has moved out of Tokyo and to HK. Buy side has established itself in Singapore and sell side in HK. Thats how I see it.

  9. Asiaprop, thanks for that info. Do you know how receptive people seem to be to managed futures in Asia compared to the States? Do you think it's a better environment than the US? (I'm building a track record with a few small accounts now to create a low-minimum managed program.) Do you know by chance about demand for managed futures in Korea (since I speak the language and have thought that could help me find clients there). Thanks.
  10. i think its harder to garner interest here than in the US for a start-up. A lot is about relationships. If you know someone who knows someone....then you may get away with a non-existent track record. Otherwise it pays to just keep on going till you have something to show for yourself.

    CTA programs are pretty unknown around here so you may want to do more targeted advertisement (again with your own record once you have established one).

    #10     Oct 21, 2009