Question re CTA/CPO exemption

Discussion in 'Professional Trading' started by jwcapital, May 13, 2008.

  1. Any Board members actually trade OPM and are exempt from NFA/CFTC designations CTA and CPO? If so, what do your business entities look like? How many "qualified investors" do you have? I am asking, for I am considering applying for CPO exemption (CTA exemption is automatic is you advise fewer than 15 clients, and you do not call yourself a CTA). As I understand it, CPO exemption status requires the CPO to fit into a number of categories. The one that attracts me is the one that limits me to only accepting funds from "qualified investors." Therefore, suppose I create an LLC that acts as the exempt advisor, and I create another LLC that is the exempt CPO. Technically, the exempt CTA is only advising one client--the investment vehicle LLC. If that is true, then the investment vehicle can hold as many qualified investors as I want. Am I missing something or am I interpreting the regulations incorrectly? Appreciate feedback.
  2. MGJ


  3. Any similar limit for funds under management if you apply for CTA exemption ?
  4. No. The limit applied to CTA exemption is the number of people (entities?) being advised--15.