Definitions

Commodity Trading Advisor (CTA) is a professional money manager in the futures industry.  A CTA is the equivalent of an investment advisor in traditional stock and bond investments.  CTAs usually manage futures positions on a fully discretionary basis.  They may manage individual accounts or portions of larger partnerships or pools.

Commodity Pool Operator (CPO) is an entity that serves as the general partner of a futures limited partnership.  The CPO may also serve as the manager of the fund or it may hire other CTAs as managers.  If an entity only manages a limited partnership it would register only as a CPO.  However, if the entity manages both separate accounts and a limited partnership it would be registered as both a CTA and a CPO.

Futures Commission Merchants (FCMs) are the brokerage firms that execute, clear, and carry trades for non-member traders and investors.  They may also serve as CPOs and raise funds for management by others.

Commodity Futures Trading Commission (CFTC) is the regulatory body established by Congress to regulate activity in the U.S. futures markets.  It is the futures industry equivalent of the Securities and Exchange Commission (SEC) which regulates the stock and band markets.

National Futures Association (NFA) is a futures industry self regulatory body established by the Commodity Futures Trading Commission to oversee registration and monitoring of professional participants in the futures industry.