Meet the Futures Industry: A Breakdown of Terminology, Roles and Responsibilities
By Attain CapitalOur weekly newsletter is out, and this week we’re breaking down the players in the futures industry. These days, the futures industry has been in the spotlight in a way we’ve never seen. Granted, we can think of better reasons to pay attention to our corner of the world, but the enhanced attention to our space has highlighted another issue – the fact that the public, at large, has little understanding of the futures industry in general. From reporters referring to FCMs as brokers, to the press using the term managed futures funds, to a seemingly never ending stream of questions related to what, exactly, an FCM does, it appears that the only thing that’s clear is a desperate need for clarity.
Understanding the distinctions between various actors in this space is important to both investors and media alike. It can help provide guidance on who to work with, and what to be thinking about when making investment decisions. It’s also pretty critical to establishing a wider understanding of the significance of what’s been happening in our industry. So let’s break it down – who the players are, who they answer to, and how those roles might be evolving in the coming months and years. To see the full breakdown on our site, click here.
- - - - - -
To read more Managed Futures research pieces, visit Attain’s Managed Futures Newsletter archive and our Managed Futures Blog.
DISCLAIMER
Forex trading, commodity trading, managed futures, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors.
The entries on this blog are intended to further subscribers understanding, education, and – at times- enjoyment of the world of alternative investments through managed futures, trading systems, and managed forex. Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts.
The mention of asset class performance is based on the noted source index (i.e. Newedge CTA Index, S&P 500 Index, etc.) , and investors should take care to understand that any index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices: such as survivorship and self reporting biases, and instant history.
Managed Futures Disclaimer:
Past Performance is Not Necessarily Indicative of Future Results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.
Copyright © 2011 Attain Capital Management, licensed Managed Futures, Trading System & Commodity Brokers. All Rights Reserved. Reprinted with permission.

