Futures commission merchant

Brokerage Anatomy™

{{{2}}}

FIA/ISDA documentation \| Trading capacities: Principal \| Undisclosed principal Riskless principal \| Agent \| Undisclosed agent Broker types: Broker \| Dealer \| Broker/dealer \| Executing broker \| Clearing broker \| Prime broker \| FCM \| CCP Clearing: Clearing overview \| How clearing works \| What gets cleared? \| Who clears? \| Clearing documentation

Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

A futures commission merchant is an individual or organization which does both of the following:

Solicits or accepts orders to buy or sell futures contracts, options on futures, retail off-exchange forex contracts* or swaps and
Accepts money or other assets from customers to support such orders.

Registration is required unless:

You handle transactions only for yourself or your firm itself or your firm’s affiliates, top officers, or directors or
You are a non-U.S. resident or firm with only non-U.S. customers and you or your firm submits all trades for clearing to an FCM.

All registered FCMs must be Members of NFA in order to conduct futures business with the public.