The Birth Of Commodity Trading Advisors In Japan
In Japan, with the arrival of the monetary Big Bang, and also with the wave of the deregulation, the needs of the investors are becoming more and more complex each day to find a more profitable investment opportunity. Thus the form of the monetary services are being looked over again.
Many services are being designed to match the needs of the investors. One of the services that is being focused on is the commodity fund business (commodity investment distributing business) which manages the assets by investing in the commodity and monetary markets, and the commodity trading advisor business which are entrusted the investment judgement in mainly the commodity markets. By managing a fair operation in each field, and by fair investment in the commodity market, we will be able to expect an economical meaning through the smooth flow of the production and distribution of each commodity and by the diversification of the investment chances.
The commodity trading business along with the commodity fund business (commodity pool business) was proclaimed on May 1991, and enforced in April 1992, based upon the "Commodity Investment Regulations" (so called "commodity fund law") under the jurisdiction of the Ministry of Finance, the Ministry of Agriculture, Forestry and Fisheries and the Ministry of International Trade and Industry.
The commodity trading advisor, with the expert knowledge of investment in the commodity futures, commodity index and the commodity option markets are traders who will manage assets entrusted by investors, offering the same services as the securities investment advisor and the CTAs in the US. As with these businesses, a CTA is prohibited to receive assets in any way.
| The flow of the commodity trading advising contract are as follows. |
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