Just Say No To CTA Capital Requirements

Discussion in 'Professional Trading' started by CPTrader, Mar 22, 2014.

  1. To CTAs and CPOs on the forum, please review this website and sign the letter if you support the cause.

    www.ctaplaybook.com


    Thank you.
     
  2. A word of advice......

    Organizations that are meant to protect the consumers are actually in the business of protecting those who they should be regulating. FDA, FAA, NFA and so on... They need to get rid of competition to keep big business on top (AKA frat brothers and people who have their backs).

    Your idea is excellent in principle but in the real world it does not matter because you are not part of the club!
     
  3. I really don't understand the reason for requiring CTAs to have a capital requirement. Is it for liability insurance in case of civil suits and/or to pay for a govt(CFTC, NFA) managed restitution fund? I would understand that but its obvious that they (NFA) is not being specific enough on how the proposed capital requirements would deter CTA/CPO s from committing violations.


    1st time you misuse or mishandle client funds.....you're DONE !! You pay back restitution and you are banned from the industry ....FOREVER

    I do think that CTAs and CPOs should be required to have an independant 3rd party(administrator) to verify the books on a quarterly or semi annual(every 6 months) basis if they are in control of greater than $25K in client funds under the firm's control. On this note, I think CTAs/CPOs should be exempt from the capital requirements AND third party "overseeing" IF they trade managed client accounts thru ONE SOLE BROKER. For example: I manage my client accts thru one sole broker..,,,,my broker handles all my client's daily/monthly/yearly accounting resposibilities.......effectively and conveniently keeping me out of the "client funds handling" loop.

    .....my 2 cents
     
  4. Your efforts can only be commended. In my views, if you want to be effective :

    1) create an association of CTAs/CPOs as quickly as possible

    2) get the association to hire a set of good lawyers to pleade your case.

    The reason being : as a finance person, you have no idea about what goes really on when new regulatory frameworks are put in place. Also, your wordings/logic might look weak to those who want to establish these regulations.

    I guess all the 2496 CTAs can thank the 4 firms for these burdens.
    But then of course : why didn't they do anything to police themselves?