As a CTA, do you need to register with each State?

D

dabao91

As a CTA, do you need to register with each State?

Assuming you pass S-3 exam and you become a registered CTA with CFTC/NFA.

You live in Illinois.

1. Can you manage separated managed accounts (only trade futures and do not trade stocks) for the clients from the states other than Illinois?
2. Do you need to register with other States?
3. If yes, which States?
4. Can you manage separated managed accounts (only trade futures and do not trade stocks) for the clients from other countries?

Please advise. Thanks.
 
as long as you stick to individually managed accounts, you do not need to register in every state. if you get into being a CPO and managing pools, then your compliance requirements go up dramatically. you may have pools as customers as a cta.

the only registration is federally, although your business entity will need to register with a state just like any other business. there are no special state registrations due to your being a cta.
 
Quote from dabao91:

As a CTA, do you need to register with each State?

Assuming you pass S-3 exam and you become a registered CTA with CFTC/NFA.

You live in Illinois.

1. Can you manage separated managed accounts (only trade futures and do not trade stocks) for the clients from the states other than Illinois?
2. Do you need to register with other States?
3. If yes, which States?
4. Can you manage separated managed accounts (only trade futures and do not trade stocks) for the clients from other countries?

Please advise. Thanks.
More...

Years ago, you MAY have to register if you have a client in that state and are charging fees or profit sharing.

Some states would let you have up to 5 clients before having to register in it.

Mostly states want the revenue, so some make you register and pay an annual fee if you have even one client there.... think of it as a tax.

Suggest you contact each state in which you have a client and inquire about registration requirements... and perhaps contact new states BEFORE accepting a client in them. I recall Texas being especially annoying.
 
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