An Omnibus account can allow investors to access foreign markets while maintaining a certain degree of anonymity, although omnibus accounts are not allowed in some parts of the world. An investment fund is a pool of prefabricated investments whose funds come from different investors pursuing the same investment objectives. The funds raised are managed by licensed fund managers and placed on tables of UITF-type financial instruments that an investor has chosen. If a country accepts an omnibus account from abroad, it becomes a host market. Depending on the host country, regulatory concerns may arise. Since the individual investors participating in the account are not known, it is not possible to determine the intentions of the investors concerned. The addition of foreign funds can destabilize a small host market if the Omnibus account represents a very large amount of money. Meanwhile, many investors trust the companies to come, which is considered crucial for the fluctuations that often occur in the market. An Omnibus account is normally monitored by a manager in the long term.
The futures manager uses the funds in the account to enter into trades on behalf of the participating individual investors….