Commodity Pool Operator (CPO)
I was thinking over the weekend on how we, doing what we do would be defined in a business or market sense, we are educators & not advisers yet we have a platform that allows you to participate & profit in pre-sold physical commodities contracts.
We are unique and innovative and COL is not a CPO…..
“A CPO is an individual or organization which operates or solicits funds for a commodity pool; that is, an enterprise in which funds contributed by a number of persons are combined for the purpose of trading futures contracts or commodity options, or to invest in another commodity pool.” National Futures Association (NFA) definition. The NFA regulates every firm or individual who conducts futures trading business with public customers.
A CPO will generally consist of an entity that accepts funds, securities or property for the purpose of trading commodity futures contracts. The CPO may also make its own trading decisions or more usually it will engage a commodity trading adviser (CTA) to do so on its behalf.
CPO’s and CTA’s are regulated by US federal government through the Commodity Futures Trading Commission (CFTC) with additional oversight from the National Futures Association NFA.
“The CTA / CPO fund industry is over $350B in size and I believe it will grow to over $1 Trillion in assets over the next 7 years”.
OK, that’s an officious definition, and heres how we differ:
1. We do not solicit funds.
2. We are not a Broker.
3. We do not trade in futures or options.
4. We do not advise or recommend positions.
I welcome questions, comments & greetings……