US CTA From Ontario

Discussion in 'Professional Trading' started by air, May 1, 2013.

  1. air


    Good day,

    Can a Commodity Trading Advisor registered with the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) operate from Ontario if It has all its business in the US (clients), does not have nor plan to have any Canadian clients and does not trade nor plan to trade any Canadian futures or options markets?

    Thank you.
  2. I would think so. Dighton Capital is/was a CTA operating from the Cayman Islands, so I don't see why Canada would not be possible. But I assume you have checked with the NFA or CFTC by now?
  3. air


    Good day gone,

    Thank you for your reply.
    Yes, I have checked with the NFA/CFTC. A CTA can work from anywhere, as long as it is registered.

    The question I would like to answer is regarding the Canadian authorities, which I have also contacted with not answer so far.

    Can a CTA registered in the US work out of Ontario, if the business would be in the US and no Canadian futures markets would be used?

  4. My guess (and it's only a guess, I am no expert) would be that since you would not be trading anything listed on Canadian exchanges and you would not soliciting any Canadian clients, your only obligations to any Canadian authorities would be to the Canadian Tax authorities for income earned as a CTA. I hope you will get an official answer soon!
  5. air


    Thanks gone.

    I got an answer.

    They suggested I ask a lawyer, since it could be either way...


  6. air


    Thank you odd,

    It is a very interesting discussion.

    A good performance is only the first step.
  7. I see regulators aren't better in Canada than elsewhere, they can't even answer a simple question for the rules they made confuse them as much as anybody else.
  8. Ontario may still regulate you, even if you have no Ontario or Canadian clients.

    *Some* states regulate advisers operating in their states, even if they have no U.S. clients. Others do not.
  9. air


    Thank you all.

    #10     May 17, 2013