NexusFi: Find Your Edge


Home Menu

 





CFTC / Large Trader


Discussion in Commodities

Updated
      Top Posters
    1. looks_one SMCJB with 6 posts (20 thanks)
    2. looks_two comegetme with 5 posts (1 thanks)
    3. looks_3 myrrdin with 4 posts (22 thanks)
    4. looks_4 FuturesTrader71 with 2 posts (14 thanks)
      Best Posters
    1. looks_one FuturesTrader71 with 7 thanks per post
    2. looks_two Schnook with 6.5 thanks per post
    3. looks_3 myrrdin with 5.5 thanks per post
    4. looks_4 SMCJB with 3.3 thanks per post
    1. trending_up 6,958 views
    2. thumb_up 84 thanks given
    3. group 7 followers
    1. forum 22 posts
    2. attach_file 0 attachments




 
Search this Thread

CFTC / Large Trader

  #1 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,687
Thanks Received: 2,651

I have been "invited" by CFTC to register as a "larger trader", and to complete the CFTC Form 40 “Statement of Reporting Trader”.

What are the consequences of being registered ?

Best regards, Myrrdin

Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Trade idea based off three indicators.
Traders Hideout
Exit Strategy
NinjaTrader
ZombieSqueeze
Platforms and Indicators
Any futures traders in Texas looking to give back to tho …
Traders Hideout
Better Renko Gaps
The Elite Circle
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Diary of a simple price action trader
20 thanks
My NQ Trading Journal
17 thanks
Coding money management strategies.
14 thanks
Just another trading journal: PA, Wyckoff & Trends
12 thanks
Daytrading ES & NQ
9 thanks
  #2 (permalink)
 
Schnook's Avatar
 Schnook 
Munich, Germany
 
Experience: Advanced
Platform: Sierra Chart
Broker: Interactive Brokers
Trading: liquid products
Posts: 570 since Jul 2016
Thanks Given: 1,166
Thanks Received: 1,917

Apparently your position size has exceeded one or more of these thresholds.

I can't offer any personal insight beyond that which is written on the CFTC website, but since you now hold a large futures position you don't have a choice in the matter. You "must" report.

Form 40 instructions,

"A reportable trader must file a Form 40 on call by the Commission or its designee"

"Every person who holds or controls a reportable position must file a CFTC Form 40, Statement of Reporting Trader"


I do know that the information you supply will be used by the CFTC in both monitoring and reporting activities, such as the COT reports that they publish each week. Punters like me are classified in these reports as "non-reportable". You, however, are apparently a big boy now. Congratulations. You're on the CFTC's radar.

If I were in your position I would call your broker or clearing firm and speak to their compliance department. I'm sure they would have resources to help you with your reporting requirements and perhaps offer some additional guidance for how you might be able to minimize your administrative burdens going forward.

Reply With Quote
  #3 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,687
Thanks Received: 2,651



Schnook View Post
Apparently your position size has exceeded one or more of these thresholds.

I can't offer any personal insight beyond that which is written on the CFTC website, but since you now hold a large futures position you don't have a choice in the matter. You "must" report.

Form 40 instructions,
[I]

Looking ar the table of the thresholds, most of them are far beyond my position numbers. With one exception: "All other Commmodities: 25".

Indeed, I hold 40 futures for the Bloomberg Commodity Index, which is a small future with a maintenance margin of 700 - 800 USD at Interactive Brokers.

I hope this position does not cause me a lot of problems ...

Best regards, Myrrdin

Started this thread Reply With Quote
  #4 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,048 since Dec 2013
Thanks Given: 4,380
Thanks Received: 10,205


myrrdin View Post
I have been "invited" by CFTC to register as a "larger trader", and to complete the CFTC Form 40 “Statement of Reporting Trader”.

Welcome to the Club!

myrrdin View Post
What are the consequences of being registered ?

In reality, other than the government getting information about you - the loss of privacy, none at all - at least for me.


Schnook View Post
but since you now hold a large futures position you don't have a choice in the matter. You "must" report.

Agreed not a choice.


Schnook View Post
If I were in your position I would call your broker or clearing firm and speak to their compliance department. I'm sure they would have resources to help you with your reporting requirements and perhaps offer some additional guidance for how you might be able to minimize your administrative burdens going forward.

For me all I have to do is file a form with the CFTC every two years. They even email me when the form is due. It's a pretty simple form as well. All the actual reporting is done automatically by the broker to the CFTC. I'm sure every broker has systems in place to do this - if they don't they must have small clients!


Schnook View Post
You're on the CFTC's radar.

This is true. I actually had a meeting with the CFTC. They literally called me up and said 'hey we're in town mind if we get together'. I nearly had a heart attack! In reality it was purely informational - and I actually learnt a lot from them. They were literally in town (Houston) from Chicago for the week and doing a round of meetings. They'd seen one of my positions, were curious about it and added me to the list of meetings! This definitely puts you on their radar!

Reply With Quote
  #5 (permalink)
 
FuturesTrader71's Avatar
 FuturesTrader71 
 
Posts: 391 since Feb 2012
Thanks Given: 174
Thanks Received: 1,514


myrrdin View Post
I have been "invited" by CFTC to register as a "larger trader", and to complete the CFTC Form 40 “Statement of Reporting Trader”.

What are the consequences of being registered ?

Best regards, Myrrdin

Hi Myrrdin,

I see that nobody responded, so I will do my best to help out with the understanding that I'm not a regulatory or compliance attorney and this is not legal advice. This is my view based on what I know about this process.

Not sure what it means to be "invited" to file Form 40. Generally, you are required to do so if you are holding or controlling a reportable position. This isn't an option. A trader must do so. The goal of this is for this federal regulator to understand what you are doing with the position, whether it is hedged or speculative and so on. Their mandate is to make sure that the markets remain orderly and we don't see another LTCM-type of blow-up or cornering of the market. By filing Form 40, you are not "registering" in the classical sense (meaning someone who is holding a license or anything).

If you need the name/number of a good compliance attorney, please drop me a private message.

Good luck!

Risk Disclaimer: Trading Futures is not suitable for all investors. Past Performance is not indicative of future results.

If you have any questions about the products or services provided, please send me a Private Message or use the futures.io " Ask Me Anything" thread
Follow me on Twitter Reply With Quote
  #6 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,048 since Dec 2013
Thanks Given: 4,380
Thanks Received: 10,205


FuturesTrader71 View Post
I see that nobody responded

Guess I don't count!

FuturesTrader71 View Post
If you need the name/number of a good compliance attorney, please drop me a private message.

I've been subject to this for approx 10 years. You don't need to spend a lot of money on a lawyer for this. It's not a big deal!

Reply With Quote
Thanked by:
  #7 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
Site Administrator
Developer
Swing Trader
 
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
Frequency: Every few days
Duration: Weeks
Posts: 50,439 since Jun 2009
Thanks Given: 33,201
Thanks Received: 101,598

He might have needed NFA approval before submitting his post, causing a significant delay. Not sure, just guessing.
SMCJB View Post
Guess I don't count!

I've been subject to this for approx 10 years. You don't need to spend a lot of money on a lawyer for this. It's not a big deal!

Sent using the NexusFi mobile app

We're here to help: just ask the community or contact our Help Desk

Quick Links: Change your Username or Register as a Vendor
Searching for trading reviews? Review this list
Lifetime Elite Membership: Sign-up for only $149 USD
Exclusive money saving offers from our Site Sponsors: Browse Offers
Report problems with the site: Using the NexusFi changelog thread
Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote
Thanked by:
  #8 (permalink)
 
FuturesTrader71's Avatar
 FuturesTrader71 
 
Posts: 391 since Feb 2012
Thanks Given: 174
Thanks Received: 1,514


SMCJB View Post
Guess I don't count!

I've been subject to this for approx 10 years. You don't need to spend a lot of money on a lawyer for this. It's not a big deal!

That is so weird. I came here and looked and there were no replies. I refreshed and there they all are. Sorry about this!

Risk Disclaimer: Trading Futures is not suitable for all investors. Past Performance is not indicative of future results.

If you have any questions about the products or services provided, please send me a Private Message or use the futures.io " Ask Me Anything" thread
Follow me on Twitter Reply With Quote
Thanked by:
  #9 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,048 since Dec 2013
Thanks Given: 4,380
Thanks Received: 10,205


FuturesTrader71 View Post
That is so weird. I came here and looked and there were no replies. I refreshed and there they all are. Sorry about this!

No worries. I thought your reply was a little strange. You do a lot for the trading community in general, for which I salute you. Stay Safe in these interesting times!

Reply With Quote
  #10 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,687
Thanks Received: 2,651



FuturesTrader71 View Post

Not sure what it means to be "invited" to file Form 40.

In Austrian language, "invited", using quotation marks, means the same as "required". Sorry - our language is not as clear as yours ...

There is a saying regarding Germans and Austrians, who both have German as their native language: "The major difference between Germans and Austrians is the common language."

Best regards, Myrrdin

Started this thread Reply With Quote




Last Updated on September 4, 2021


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts