Commodity Pool


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Commodity Pool

A pool of liquidity that an investment company places in futures and options with the goal of producing a certain return. Because a commodity pool contains more liquidity than investors could afford on their own, it distributes risk between investors and allows them to forego margin requirements. Commodity pools are actively managed by the company to maintain the investment goals. Commodity pools are designed for investors who wish to take advantage of a highly diversified futures and options portfolio without a large amount of capital. See also: Commodity pool operator.
References in periodicals archive ?
IASG has been serving commodity trading advisors, commodity pool operators and the investors in those vehicles since 1992.
LongTail Alpha LLC is an SEC-registered investment adviser and CFTC-registered commodity pool operator and commodity trading adviser that focuses on adding value to portfolios during volatile markets.
Dr Chan is the Managing Member of the QTS Capital Management LLC., a commodity pool operator and trading advisor.
Last year, for instance, a cyberattack against one of the world's largest fund administrators resulted in a series of fraudulent wire transfers that cost a commodity pool operator (CPO) nearly $6 million in assets.
He had previously served as a consultant with Phoenix Global Capital Management and earlier served as chief executive officer, and in other executive positions at the commodity pool operator and futures trading subsidiary of a major South Korean multinational conglomerate.
Commodity pool operators and commodity trading advisors dually registered with the SEC and the CFTC are also required to file Form PF.
Effective January 1, 2013, HIRE requires a "foreign financial institution," which includes a bank, broker-dealer, hedge fund or commodity pool formed under the laws of a non-U.S, country, to enter into an agreement with the IRS to report certain information about its "United States accounts" or be subject to a 30% U.S.
A "commodity pool" is an alternative to mutual funds, but has many of the same characteristics.
Acting as a commodity pool operator for private investment funds organized as commodity pools that invest in assets in which a bank holding company is permitted to invest.
A hedge fund manager seeking to engage in commodities trading will, as a general rule, have to be registered as a commodity pool operator with the Commodity Futures Trading Commission (CFTC).
The Commodity Futures Trading Commission (CFTC) issued an Order filing and settling charges against Swapnil Rege, a former portfolio manager for a Connecticut-based hedge fund registered with the CFTC as a commodity pool operator (CPO), for fraudulently mismarking swap valuations to artificially inflate the profits of his employers trading book in order to obtain an increased performance bonus.