Key Takeaways
- • A commodity trading adviser (CTA) is a US regulatory term covering investment companies and hedge funds that trade futures or other derivatives, most commonly using systematic strategies.
- • The derivatives held by CTA funds are collectively known as managed futures, which are not limited to commodities and can reference equities, currencies, indexes and interest rates.
- • Most CTA funds pursue trend-following strategies.
- • All CTAs must register with the US Commodity Futures Trading Commission and be members of the US National Futures Association.
Summary
A commodity trading adviser, or CTA, is a US regulatory designation applied to a broad range of investment companies and hedge funds that trade futures or other derivatives, most commonly through systematic strategies, according to the source's risk glossary definition.
The derivatives held within these funds are collectively referred to as managed futures. Despite the name, their underlying exposures are not confined to commodities. Some CTA funds invest in contracts tied to equities, currencies, indexes and interest rates. Most CTA funds follow trend-following strategies.
Regulatory requirements apply to all CTAs: each must register with the US Commodity Futures Trading Commission and must also be a member of the US National Futures Association. The source does not provide additional market data, fund figures or recent developments.
The derivatives held within these funds are collectively referred to as managed futures. Despite the name, their underlying exposures are not confined to commodities. Some CTA funds invest in contracts tied to equities, currencies, indexes and interest rates. Most CTA funds follow trend-following strategies.
Regulatory requirements apply to all CTAs: each must register with the US Commodity Futures Trading Commission and must also be a member of the US National Futures Association. The source does not provide additional market data, fund figures or recent developments.
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