For Release: June 11, 1998
CFTC ISSUES A CONCEPT RELEASE REGARDING
PERFORMANCE REPORTING AND DISCLOSURE ISSUES
FOR CTAs AND CPOs
Washington --The Commodity Futures Trading Commission (Commission)
today issued a concept release seeking public comment regarding
possible changes to regulatory requirements which apply to the
programs offered to the public by commodity trading advisors (CTAs)
and commodity pool operators (CPOs).
The proposals discussed in this release originate from two sources.
First, the National Futures Association (NFA) submitted a set of
proposals to the Commission for its approval which concern
computational and disclosure matters relating to CTA programs on a
partially-funded basis. Second, the Commission staff's preliminary
review of the NFA proposal gave rise to a number of additional related
proposals which the Commission also wishes to consider. The proposals
fall within the following categories:
1) improving risk profile data for clients considering participation in CTA programs on a partially-funded or notionally-funded basis;
2) providing CTA client account information to FCMs for risk management purposes;
3) improving risk profile data on commodity pools;
4) providing a theoretically sound basis of computation and presentation for rate of return (ROR) and related risk profile data;
5) improving the presentation of historical performance and risk profile data; and
6) providing periodic statements of program activity and results to
Comments on the concept release must be received within 60 days of its publication in the Federal Register. Copies of the concept release may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100, or by accessing the Commission's website, www.cftc.gov.