The annual publication of the Disclosure Document CTA (DDOC) is a mandatory requirement of capital management in the futures and options markets. Commodity Trading Advisors (CTA) must deliver a Disclosure Document for the offered program to a prospective client prior to or when it delivers the advisory agreement to the client. CTAs must obtain from prospective clients an acknowledgement signed and dated by the client stating that they received a Disclosure Document.
The main objective of the Disclosure Document disclosure of information to existing and potential customers of the management company, principles of its work and the proposed trading programs.
Disclosure Documents (“Documents”) for CTAs must include the following information:
• Risk Disclosure Statement,
• CTA introduction information (Principals, business background, office address etc.),
• Principal risk factors,
• Advisor’s fees (a complete description of each fee the CTA will charge),
• Additional Disclosures for Partially-Funded or Notionally-Funded Accounts,
• Conflicts of Interest (a full description of any actual or potential conflicts of interest regarding any aspect of the trading program),
• Additions and withdrawals to existing accounts
• Description and Performance of the offered trading program,
• Brokerage arrangements,
• Acknowledgment of receipt of disclosure document,
• Additional information.