Trading Activities

12 Months Ended

Dec. 31, 2023

4.	Trading Activities:

The Partnership was formed for the purpose of trading contracts in a variety of commodity interests, including derivative financial instruments and derivative commodity instruments. The results of the Partnership’s trading activities are shown in the Statements of Income and Expenses.

The Partnership Customer Agreement with MS&Co. and foreign exchange brokerage account agreements give the Partnership the legal right to net unrealized gains and losses on open futures contracts and open forward contracts in the Statements of Financial Condition. The Partnership nets, for financial reporting purposes, the unrealized gains and losses on open futures contracts and open forward contracts in the Statements of Financial Condition as the criteria under ASC

210-20,

“

Balance Sheet

,” have been met.

The Partnership’s trading of futures, forward and option contracts, as applicable, on commodities is done primarily on U.S. and foreign commodity exchanges. The Partnership engages in such trading through commodity brokerage accounts maintained with MS&Co.

All of the commodity interests owned by the Partnership are held for trading purposes. The monthly average number of futures contracts traded by the Partnership during the years ended December 31, 2023 and 2022 were 3,984 and 3,642, respectively. The monthly average number of metals forward contracts traded by the Partnership during the years ended December 31, 2023 and 2022 were 201 and 134, respectively. The monthly average notional value of currency forward contracts traded by the Partnership during the years ended December 31, 2023 and 2022 were $123,209,511 and $223,377,721, respectively.

Trading and transaction fees are based on the number of trades executed by the Advisors.

All clearing fees paid to MS&Co. for the Partnership’s trading are borne by the Partnership.

The following tables summarize the gross and net amounts recognized relating to assets and liabilities of the Partnership’s derivatives and their offsetting subject to master netting arrangements or similar agreements as of December 31, 2023 and 2022, respectively.


				Gross Amounts			Net Amounts			Gross Amounts Not Offset in the
				Offset in the			Presented in the			Statements of Financial Condition
	Gross Amounts			Statements of Financial			Statements of Financial			Financial		Cash Collateral Received/		Net
December 31, 2023	Recognized			Condition			Condition			Instruments		Pledged*		Amount
Assets
Futures	$	2,995,671		$	(2,625,198	)	$	370,473		$	-	$	-	$	370,473
Forwards		888,922			(888,922	)		-			-		-		-

Total assets	$	3,884,593		$	(3,514,120	)	$	370,473		$	-	$	-	$	370,473

Liabilities
Futures	$	(2,625,198	)	$	2,625,198		$	-		$	-	$	-	$	-
Forwards		(1,226,688	)		888,922			(337,766	)		-		337,766		-

Total liabilities	$	(3,851,886	)	$	3,514,120		$	(337,766	)	$	-	$	337,766	$	-

Net fair value														$	370,473	*


				Gross Amounts			Net Amounts			Gross Amounts Not Offset in the
				Offset in the			Presented in the			Statements of Financial Condition
	Gross Amounts			Statements of Financial			Statements of Financial			Financial		Cash Collateral Received/		Net
December 31, 2022	Recognized			Condition			Condition			Instruments		Pledged*		Amount
Assets
Futures	$	4,783,634		$	(2,338,243	)	$	2,445,391		$	-	$	-	$	2,445,391
Forwards		767,869			(767,869	)		-			-		-		-

Total assets	$	5,551,503		$	(3,106,112	)	$	2,445,391		$	-	$	-	$	2,445,391

Liabilities
Futures	$	(2,338,243	)	$	2,338,243		$	-		$	-	$	-	$	-
Forwards		(807,192	)		767,869			(39,323	)		-		39,323		-

Total liabilities	$	(3,145,435	)	$	3,106,112		$	(39,323	)	$	-	$	39,323	$	-

Net fair value														$	2,445,391	*

In the event of default by the Partnership, MS&Co., the Partnership’s commodity futures broker and the sole counterparty to the Partnership’s

non-exchange-traded

contracts, as applicable, has the right to offset the Partnership’s obligation with the Partnership’s cash and/or U.S. Treasury bills held by MS&Co., thereby minimizing MS&Co.’s risk of loss. In certain instances, MS&Co. may not post collateral and as such, in the event of default by MS&Co., the Partnership is exposed to the amount shown in the Statements of Financial Condition. In the case of exchange-traded contracts, the Partnership’s exposure to counterparty risk may be reduced since the exchange’s clearinghouse interposes its credit between buyer and seller and the clearinghouse’s guarantee funds may be available in the event of a default. In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization.

The following tables indicate the gross fair values of derivative instruments of futures and forward contracts held by the Partnership as separate assets and liabilities as of December 31, 2023 and 2022, respectively.


	December 31,
	2023
Assets
Futures Contracts
Currencies	$	146,769
Energy		482,993
Grains		236,801
Indices		733,965
Interest Rates U.S.		130,664
Interest Rates Non-U.S.		559,490
Livestock		220
Metals		156,905
Softs		547,864

Total unrealized appreciation on open futures contracts		2,995,671


Liabilities
Futures Contracts
Currencies		(239,168	)
Energy		(996,165	)
Grains		(184,709	)
Indices		(245,853	)
Interest Rates U.S.		(113,358	)
Interest Rates Non-U.S.		(672,519	)
Metals		(126,095	)
Softs		(47,331	)

Total unrealized depreciation on open futures contracts		(2,625,198	)

Net unrealized appreciation on open futures contracts	$	370,473	*


Assets
Forward Contracts
Currencies	$	562,573
Metals		326,349

Total unrealized appreciation on open forward contracts		888,922


Liabilities
Forward Contracts
Currencies		(691,946	)
Metals		(534,742	)

Total unrealized depreciation on open forward contracts		(1,226,688	)

Net unrealized depreciation on open forward contracts	$	(337,766	) **

*	This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.

**	This amount is in “Net unrealized depreciation on open forward contracts” in the Statements of Financial Condition.


	December 31,
	2022
Assets
Futures Contracts
Currencies	$	335,390
Energy		1,086,847
Grains		454,808
Indices		347,516
Interest Rates U.S.		98,297
Interest Rates Non-U.S.		2,262,386
Livestock		310
Metals		131,732
Softs		66,348

Total unrealized appreciation on open futures contracts		4,783,634


Liabilities
Futures Contracts
Currencies		(128,154	)
Energy		(801,290	)
Grains		(169,873	)
Indices		(514,146	)
Interest Rates U.S.		(151,219	)
Interest Rates Non-U.S.		(411,124	)
Livestock		(1,200	)
Metals		(112,209	)
Softs		(49,028	)

Total unrealized depreciation on open futures contracts		(2,338,243	)

Net unrealized appreciation on open futures contracts	$	2,445,391	*


Assets
Forward Contracts
Currencies	$	713,033
Metals		54,836

Total unrealized appreciation on open forward contracts		767,869


Liabilities
Forward Contracts
Currencies		(729,014	)
Metals		(78,178	)

Total unrealized depreciation on open forward contracts		(807,192	)

Net unrealized depreciation on open forward contracts	$	(39,323	) **

*	This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.

**	This amount is in “Net unrealized depreciation on open forward contracts” in the Statements of Financial Condition.

The following table indicates the trading gains and losses, by market sector, on derivative instruments traded by the Partnership for the years ended December 31, 2023, 2022 and 2021, respectively.


Sector	2023				2022				2021
Currencies	$	(763,584	)		$	1,868,856			$	(610,839	)
Energy		(3,025,817	)			4,221,030				11,006,591
Grains		(351,578	)			193,707				2,268,001
Indices		124,217				225,406				3,540,100
Interest Rates U.S.		253,640				(2,062,820	)			(807,159	)
Interest Rates Non-U.S.		(3,144,974	)			8,906,493				(3,572,828	)
Livestock		10,170				(462,710	)			(301,560	)
Metals		(1,860,735	)			906,913				(923,008	)
Softs		1,442,785				(1,385,707	)			1,026,679

Total	$	(7,315,876	)	***	$	12,411,168		***	$	11,625,977		***

***	This amount is included in “Total trading results” in the Statements of Income and Expenses.

CERES TACTICAL SYSTEMATIC L.P. 10-K