Commodity Trading Advisor, Genuine Trading Solutions, a CTA registered with the CFTC, states that today's role of a CTA is constantly evolving.

Dwayne Strocen, Chairman of Genuine Trading Solutions, says that once a Commodity Trading Advisor was content to be known as a portfolio manager by exchanging commodities and futures for a managed fund. There is no doubt that today's investor has become more sophisticated. In response, today's selection of investment products has become increasingly complex and varied, the need for the CTA to understand the uses and management of these products becomes even more acute.

So, what exactly is the role of the current Commodity Trading Advisor. Surely the derivatives trading for a managed futures fund continues to be as important as before. A CTA has also become more involved in the analysis of derivatives. This role is essentially focused on becoming an analyst to structure and analyze the most multifaceted requirements required by hedge funds, pension funds and structured products.

The use of derivative analysis to manage the adverse risk of an equity or bond portfolio determined by unfavorable market conditions is critical to preserving asset growth. The uses of hedging to prevent volatility have long been understood by major institutions, but are now available for smaller companies and individual investors. Without a doubt, as products continue to evolve, even the CTA will evolve to meet the needs of today's professional money manager.

Derivative products are no longer limited to futures and commodity options traded. There continues to be an ever-expanding list of over-the-counter derivatives. These are SWAPS. SWAPS and privately negotiated products were exchanged without the use of a recognized exchange. The difficulty is that the buyer and the seller must find each other to undertake such an agreement, which is not always easy. The second problem is not liquidity. There is no one to sell this even if one of the parties wishes to terminate the transaction before the agreed date.

A role of Commodity Trading Advisor is no longer sufficient to be limited to trading. Now it is imperative to understand the industry in a new light, so as to understand the changing investment environment. Analysis now becomes the catalyst to include a value-added service to retain customers. This includes structured products Health Fitness items, risk management and OTC derivatives. Continuous training has been and continues to be the hallmark of the best in the industry.

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