A Compliance Perspective on Managed Futures

As investors look to diversify their investment portfolio, one option is trading of derivative contracts, including futures and options on futures.  However, as the normal investor may not have much knowledge or experience trading derivatives, many investors choose the route of managed futures.  Traditionally, there are three ways in which an investor can pursue this opportunity:  a broker assisted account, an individual managed account, or a pooled investment vehicle.  To gain a better understanding of a particular firm, a customer can research a firm via NFA’s BASIC system found on NFA’s website, www.nfa.futures.org.  This system allows a potential customer to…

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