What is an FCM?

What is an FCM?

A Futures Commission Merchant is an organization that solicits or accepts orders to buy or sell futures or options contracts and accepts money or other assets from customers in connection with such orders. FCM’s work with the exchanges to handle confirmation, delivery, and settlement of transactions. In addition, FCM's hold customer funds and supply statements to members. Most FCM's act as exchange liaisons for Introducing Brokers and rely on them to communicate with traders.

The link below directs you to information regarding the CFTC's Financial Data for FCM's: 

Some key sections we link to look at are:

Adjusted Net Capital: This is the amount of regulatory capital available to meet the FCM's minimum net capital requirement. The classification of assets and liabilities used in arriving at net capital, and the additional capital haircuts that a FCM may be required to take, are set forth in CFTC Regulation 1.17.

Net Capital Requirement: The minimum net capital that each FCM must maintain is determined under CFTC Regulation 1.17(a)(1)(i). Refer to pages 7-11 through 7-12 of the Form 1-FR-FCM Instructions for more information regarding how to compute the net capital requirement.

Excess Net Capital: This is the amount by which the adjusted net capital exceeds the net capital requirement.

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