Please refer to NFA's Disclosure Documents: A Guide for CPOs and CTAs as you come across references to it below.
Please note that the use of the word "prominently" below means that the statements should be typed in CAPITAL letters and boldface type.
1) Procedures for CTAs
- If a CTA trades commodity interests, the Risk Disclosure Statement found on pages 2-3 of NFA's Disclosure Documents: A Guide for CPOs and CTAs must be prominently displayed immediately after the cover page of the Disclosure Document.
- If a CTA trades forex, the Risk Disclosure found on pages 4-5 of NFA's Disclosure Documents: A Guide for CPOs and CTAs must be prominently displayed immediately after the cover page of the Disclosure Document.
- If the CTA trades both commodity interests and forex, then both of the above Risk Disclosure Statements are required.
- If the CTA trades foreign futures or options contracts on foreign exchanges, the center paragraph found on page 5 of NFA's Disclosure Documents: A Guide for CPOs and CTAs must be included in the Risk Disclosure Statement.
- If the CTA is not a registered futures commission merchant (FCM), the last paragraph found on page 5 of NFA's Disclosure Documents: A Guide for CPOs and CTAs must be included as the last paragraph of the Risk Disclosure Statement.
2) Procedures for CPOs
- If the pool trades commodity interests, the Risk Disclosure Statement found on pages 23-24 of NFA's Disclosure Documents: A Guide for CPOs and CTAs must be prominently displayed immediately after the cover page of the Disclosure Document.
- If the pool trades forex (as defined in NFA Bylaw 1507(b)), the Risk Disclosure Statement found on pages 24-25 of NFA's Disclosure Documents: A Guide for CPOs and CTAs must be prominently displayed immediately after the cover page of the Disclosure Document.
- If the pool trades both commodity interests and forex, then both of the above Risk Disclosure Statements are required.
- If the pool trades foreign futures or options contracts on foreign exchanges, the Risk Disclosure Statement found at the top of page 26 of NFA's Disclosure Documents: A Guide for CPOs and CTAs must be included in the Risk Disclosure Statement.
- If the potential liability of a participant in the pool is greater than the amount of the participant's contribution for the purchase of an interest in the pool and the profits earned thereon, whether distributed or not, the CPO must prominently disclose the center paragraph found on page 26 of NFA's Disclosure Documents: A Guide for CPOs and CTAs.