CPOs and CTAs

Practice Areas > CPOs and CTAs

We work closely with both registered and exempt commodity pool operators (CPOs) and commodity trading advisors (“CTAs”). Our CPO services include:

  • Advising CPOs (and Forex Firms) regarding registration requirements and available exemptions from registration
  • Registering CPOs with the CFTC and NFA, including preparing and filing Form 7-R on behalf of CPOs and Form 8-R for principals and associated persons of CPOs
  • Advising CPOs regarding overall pool structure, including liquidity provisions, manager compensation, appropriate risk disclosures, etc.
  • Working with managers to accurately describe commodity pool and forex fund strategies and risk disclosures
  • Preparing customized disclosure documents for pools, including a private placement memorandum, a limited partnership agreement / operating agreement, and subscription documents for individual and institutional investors, as well as interfacing with NFA compliance personnel regarding the disclosure document approval process
  • Preparing NFA-required compliance documentation for CPOs
  • Reviewing any promotional materials used to market commodity pools
  • Structuring the management company that will serve as the CPO and drafting the CPO’s operating agreement
  • Assisting with selecting and negotiating agreements with other pool service providers, including third-party administrators, auditors, brokers and custodians
  • Drafting investor side letter agreements, seed capital arrangements and other investor negotiations
  • Advising managers regarding the use of broker-dealers and finders in connection with capital raising and negotiating third-party marketing agreements
  • Handling ongoing compliance and regulatory matters, including preparing and filing Form D annual amendments, “blue sky” renewal filings and assisting with quarterly and annual NFA filings and disclosure document updates
  • Preparing required regulatory filings on behalf of the manager and the pool, including entity formation documents, SEC Form D filings and state “blue sky” notices

Our CTA services include:

  • Advising commodity trading advisors (and Forex Firms) regarding registration requirements and available exemptions from registration
  • Registering commodity trading advisors with the Commodity Futures Trading Commission (“CFTC”) and National Futures Association (“NFA”), including preparing and filing Form 7-R on behalf of CTAs and Form 8-R for principals and associated persons of commodity trading advisors
  • Preparing disclosure documents and managed account agreements for CTAs and interfacing with NFA compliance personnel regarding the disclosure document approval process
  • Preparing operating agreements for CTAs
  • Preparing NFA-required compliance documentation for CTAs
  • Reviewing any promotional materials used to market CTA trading platforms

If you have any questions regarding our CPO and / or CTA services or would like to schedule a free consultation, please do not hesitate to contact us.