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NBR
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QUESTION
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DDA
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1
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Update FACTS External
Tracking Update Screen for the date of most recent
DD.
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DDA
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2
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Update FACTS External
Tracking Update Screen for current FCM and/or IB. In
addition to updating FACTs, document names in cell to
right
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DDA
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3
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Update FACTS External
Tracking Update Screen for the applicable NAV
information
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DDA
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4
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Review NFA's records
and document any exemptions or "No-Action"
positions.
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DDA
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5
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If the CTA is advising a
pool, ensure that the value of that a recent DDP has
been submitted.
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DDA
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6
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If the CTA is advising a
pool and no DDP is on file, prepare a CPO Discrepancy
Report and forward to the applicable audit
group.
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DDA
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7
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Review audit reports
issued within the last year to ensure all disclosure
document deficiencies have been addressed.
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DDA
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8
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Review the CFTC Status
Report to determine whether the firm was required to
make changes to its document, upon this filing. Ensure
such changes have been made.
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DDA
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9
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The cover page of the
Disclosure Document contains the cautionary statement
required by CFTC Regulation 4.34(a) and the statement
is displayed in capital letters and boldface
type.
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DDA
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10
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The Risk Disclosure
Statement contains the language required by CFTC
Regulation 4.34(b)(1) and appears as the only language
on the page immediately following any disclosures
required to appear on the cover page pursuant to
registered futures associations, thecommission and
applicable securities law. Also, the statement is
displayed in capital letters and in boldface
type.
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DDA
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11
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If the CTA intends to
trade foreign futures and options, the paragraph
required by CFTC Regulation 4.34(b)(2) is included in
the Risk Disclosure Statement in boldface type.
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DDA
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12
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If the CTA is not also an
FCM, the Risk Disclosure Statement includes the
paragraph prescribed by CFTC Regulation
4.34(b)(3).
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DDA
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13
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The document is paginated
and fastened in a secure manner.
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DDA
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14
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The document includes a
table of contents immediately following the Risk
Disclosure Statement.
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DDA
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15
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The forepart of the DDA
contains the name of CTA
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DDA
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16
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The forepart of the DDA
contains the address and telephone number of the main
business office
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DDA
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17
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If address is a P.O. Box
or not within the U.S., the location of records
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DDA
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18
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The forepart of the DDA
contains the form of organization
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DDA
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19
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The forepart of the DDA
contains the date when CTA first intends to use the
document.
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DDA
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20
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The DDA contains the name
of each principal
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DDA
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21
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Pending or concluded
mateiral administrative, civil or criminal ation
against the CTA and principals in the past five years
(Reconcile with NFA's Clearinghouse system for any
material actions)
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DDA
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22
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Business background for
past 5 years of the CTA and trading principals,
including name of employers, nature of
business/venture, duties, and location in DDA of any
required past performance.
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DDA
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23
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If commodity interests
will be/are traded for the CTA?s or principals? own
account(s), the document discloses whether participants
will be permitted to inspect records of such trades and
any written policies related to such trading.
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DDA
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24
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The DDA contains a
discussion of the principal risk factors of the offered
trading program, including volatility risks, leverage,
liquidity, counterparty creditworthiness, types of
transactions and expected investment activity.
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DDA
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25
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The DDA discloses the
types of commodity interests and other interests the
CTA will trade including any restrictions or
limitations on trading
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DDA
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26
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If known, the DDA contains
the name of the FCM that will be clearing trades or, if
the client is free to choose the FCM, the document must
include such a statement.
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DDA
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27
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The DDA contains
information regarding all pending or concluded material
administrative, civil or criminal action against the
FCM in the past five years as defined by CFTC
Regulation 4.34(k)(2) (Reconcile with NFA's
Clearinghouse system for any material actions)
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DDA
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28
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If applicable, the DDA
contains the name of the IB through which the CTA will
introduce its trades to the FCM or, if the client is
free to choose the IB, the document must include such a
statement.
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DDA
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29
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The DDA contains
information regarding all pending or concluded material
administrative, civil or criminal actions against the
IB in the past five years as defined by CFTC Regulation
4.34 (k)(2).
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DDA
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30
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All actual or potential
conflicts of interest are disclosed relating to the
CTA.
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DDA
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31
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All actual or potential
conflicts of interest are disclosed relating to
principals of the CTA.
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DDA
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32
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All actual or potential
conflicts of interest are disclosed relating to the
FCM.
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DDA
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33
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All actual or potential
conflicts of interest are disclosed relating to
principals of the FCM.
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DDA
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34
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All actual or potential
conflicts of interest are disclosed relating to the
IB.
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DDA
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35
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All actual or potential
conflicts of interest are disclosed relating to
principals of the IB.
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DDA
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36
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All actual or potential
conflicts of interest are disclosed relating to any
other material conflict involving any aspect of the
offered trading program.
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DDA
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37
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The Disclosure Document
contains a description of each expense to be charged by
the CTA, including the dollar amount if possible. (If
the document discloses a specific selling agent, ensure
that the seling agent is properly registered).
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DDA
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38
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If base amounts are used
in determining expenses, the DDA explains how the base
amount will be calculated.
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DDA
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39
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If a fee is based on an
increase in value of the account, the DDA discloses how
the increase is calculated.
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DDA
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40
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If a fee is based on an
increase in value of the account, the DDA discloses the
fees to be charged at the end of the time
period.
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DDA
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41
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If a fee is based on an
increase in value of the account, the DDA discloses the
time period used for the calculations.
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DDA
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42
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If a fee is based on an
increase in value of the account, the DDA discloses the
value of the account when payment of fees
begins.
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DDA
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43
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The DDA contains a
dilution table if upfront fees are charged.
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DDA
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44
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The DDA includes all other
material information not specifically mentioned in the
regulations.
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DDA
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45
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If unusual items are noted
during the review of this CTA disclosure document,
consider requesting promotional material utilized by
the firm in soliciting for clients. Prior to making
such request consult team members.
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DDA
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46
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Document any type of
feedback received regarding NFA's review process in
the Analyst Notes column.
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DDA
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47
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Ensure past performance
(current as of a date not more than 3 months preceding
the date of the Disclosure Document) is in capsule form
for all accounts directed by the CTA and its trading
principals.
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DDA
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48
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Ensure all performance
disclosures are in accordance with their respective
CFTC Advisories.
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DDA
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49
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The performance capsule of
the CTA and its trading principals discloses the name
of the CTA or trading principal.
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DDA
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50
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The performance capsule of
the CTA and its trading principals discloses the name
of the trading program.
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DDA
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51
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The performance capsule of
the CTA and its trading principals discloses the date
on which the CTA or trading principal began trading
clients accounts.
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DDA
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52
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The performance capsule of
the CTA and its trading principals discloses the date
when client funds began trading pursuant to the
specified trading program.
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DDA
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53
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The performance capsule of
the CTA and its trading principals discloses the number
of accounts directed by the CTA or trading principal
purusant to the specified trading program as of the
date of the Disclosure Document.
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DDA
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54
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The performance capsule of
the CTA and its trading principals discloses the total
assets under management of the CTA or trading principal
as of the date of the Disclosure Document.
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DDA
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55
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The performance capsule of
the CTA and its trading principals includes the total
assets traded pursuant to the specified trading program
as of the date of the Disclosure Document.
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DDA
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56
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The performance capsule of
the CTA and its trading principals discloses the worst
peak-to-valley draw-down for the specified trading
program during the most recent five calendar years and
year-to-date (expressed as a percentage of net asset
value) and the months and year of the draw-down
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DDA
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57
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The performance capsule of
the CTA and its trading principals discloses the worst
peak-to-valley draw-down for the specified trading
program during the most recent five calendar years and
year-to-date (expressed as a percentage of net asset
value) and the months and year of the draw-down
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DDA
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58
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The performance capsule of
the CTA and its trading principals discloses the annual
rates of return for the specified trading program for
the most recent five calendar years and
year-to-date.
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DDA
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59
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The performance capsule of
the CTA and its trading principals discloses the
monthly rates of return for the most recent five
calendar years and year-to-date presented in a numerial
table or bar graph.
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DDA
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60
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The performance capsule of
the CTA and its trading principals discloses the number
of accounts traded pursuant to the offered trading
program that closed with positive net performance(
profits) during the most recent five calendar years and
year-to-date.
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DDA
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61
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The performance capsule of
the CTA and its trading principals discloses the number
of accounts traded pursuant to the offered trading
program that closed with negative net performance(
losses) during the most recent five calendar years and
year-to-date.
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DDA
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62
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Performance results of the
CTA and its trading principals are identified as the
offered program and are separately presented as the
first performance results in the Disclosure
Document.
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DDA
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63
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If performance of accounts
traded pursuant to the same trading program is
presented on a composite basis, the document includes a
discussion of all material differences among the
accounts included in the composite.
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DDA
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64
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If the CTA or its trading
principals have not directed any accounts the statement
required by CFTC Regulation 4.35(b) is
disclosed.
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DDA
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65
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If proprietary performance
results are disclosed they are presented separately and
appear after all other required and non-required
performance disclosures in the document.
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DDA
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66
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Proprietary performance is
prominently labeled as such.
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DDA
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67
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All differences between
the proprietary performance and the performance of the
offered CTA is discussed.
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DDA
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68
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All performance
information, whether or not required by CFTC
regulations, is preceded by the statement required by
NFA Compliance Rule 2-29(b)(4).
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DDA
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69
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If hypothetical, extracted
or simulated trading results are contained in the
document they are clearly labeled as such and appear as
the last items disclosed in the document.
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DDA
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70
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If hypothetical
performance is included, ensure that the performance
presented is for a trading program with less than 3
months of actual trading results.
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DDA
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71
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The hypothetical
disclaimer prescribed by NFA Compliance Rule 2-29(c) is
included if hypothetical or other simulated results are
presented.
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