managing accounts

Discussion in 'Professional Trading' started by pierson, Oct 1, 2004.

  1. Aaron,

    Thank you for pointing out that clause. I completely forgot about it.
     
    #21     Feb 21, 2005
  2. Manu

    Manu

    Aaron,
    if I could please ask you about how you structured your business?! I tried to look you / your company up on both the NFA and the NASD / SEC websites, but could not find anything under "Schindler". How does one get around registration (legally, of course!!!), but still advertise and / or have more than $400K under management?
    Thanks for your help.
    :)
     
    #22     Feb 23, 2005
  3. I believe you have to be under $200K in order to be exempt from having to register as a CPO.
     
    #23     Feb 23, 2005
  4. Aaron

    Aaron

    Hi Manu,

    Not sure how you missed me or Schindler Trading in the NFA database. Just go to the NFA website (www.nfa.futures.org), select "Broker/Firm Information (BASIC)" from the menu at the top, and search on "Schindler" for either firm name or individual last name, and you'll see me. :) Here's a link directly to my record: http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0310098&rn=N

    You have to register with the CFTC and be an NFA member to "hold yourself out to the public as a CTA", i.e. advertise with the www.SchindlerTrading.com website like I do.
     
    #24     Feb 23, 2005
  5. Aaron

    Aaron

    It used to be $200k when I started my fund, but now it is up to $400k: http://www.nfa.futures.org/registration/cpo.asp
     
    #25     Feb 23, 2005
  6. Aaron,

    FYI, your web site is down.

    What is the difference between COMMODITY TRADING ADVISOR and COMMODITY POOL OPERATOR? I see that you registered for both.

    Thanks.
     
    #26     Feb 23, 2005
  7. Has that changed recently? I registered as a CPO because I started with $250K. I could have sworn $200K was the cut off. I see your link and see you are correct. I guess I missed something when I read over the rules and regs.
     
    #27     Feb 23, 2005
  8. Aaron

    Aaron

    Thanks for the heads up about our website. I'll check into it.

    Here're the CTA and CPO definitions from the NFA:

    A CTA basically either publishes trading signals with something like a newletter or chatroom, or else has power of attorney to actuallly make trades in a client's account for them. A CTA never takes posession of your money -- if a CTA trades your account _you_ will still be the owner of that account.

    A CPO collects investor funds and pools them together into a single brokerage account owned by the pool (and then the pool is, in turn, owned by the investors). The pool is typically a limited partnership.

    A futures pool is more commonly called a "managed futures fund" and some people include managed futures funds as a category of hedge funds.

    An advantage to investing in a pool/fund is that they usually have lower minimums and you can't lose more than your initial investment. On the other hand, an advantage to having a CTA trade your separate account is the safety of maintaining custody of your assets -- you have to initiate or sign off on any withdrawals. Schindler Trading manages both separately managed accounts and a fund, so we are registered as both a CTA and CPO.
     
    #28     Feb 23, 2005
  9. Aaron

    Aaron

    Yes, the CFTC changed the CPO exemption limit from $200k to $400k in August, 2003.
     
    #29     Feb 23, 2005
  10. Manu

    Manu

    Aaron,
    thanks for being so forthcoming and helpful...the true spirit of ET!!!

    I don't know either how I could have missed you (found you this time), as I did the same search last night and nothing came up...perhaps the website was partially down.
    :confused:
    :D
     
    #30     Feb 23, 2005