Futures Commission Merchant


Also found in: Acronyms.

Futures commission merchant (FCM)

A firm or person engaged in soliciting or accepting and handling orders for the purchase or sale of futures contracts, subject to the rules of a futures exchange and, who, in connection with such solicitation or acceptance of orders, accepts any money or securities to provide margin for any resulting trades or contracts. The FCM must be licensed by the CFTC. Related: Commission house, omnibus account.

Futures Commission Merchant

A broker or brokerage on a futures exchange. A futures commission merchant receives and executes orders on behalf of clients and extends credit for margin transactions. It is also called a commodity broker.

futures commission merchant (FCM)

A firm that carries out futures transactions for another party. Essentially, futures commission merchants are to futures trading what ordinary brokerage firms are to stock and bond trading. Some futures commission merchants are full-line brokerage firms in which futures trades make up only a small part of their business. Also called commodity brokerage firm, futures commission firm.

Futures Commission Merchant (FCM).

A futures commission merchant (FCM) is a person or a firm that acts as an agent to execute buy or sell orders for futures contracts or commodity options.

You may open an account directly with an FCM or place your orders through an introducing broker or commodity trading adviser.

References in periodicals archive ?
"Beginning on 8 March, US clients will be able to access SwapClear's unique expertise and product range within the security of the familiar futures commission merchant framework."
USA, a wholly-owned subsidiary of WSD Global Markets Ltd is registered as a Futures Commission Merchant with the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC), USA.
While the IRS may take a broad view of the definition of "foreign currency contract," it is not clear that its view trumps Congress's expressed intent that the term not include contracts entered into by private parties where neither party is a bank, futures commission merchant, or other "similar participant" in the interbank market.
This paper describes the fourfold role of a business economist with a futures commission merchant: short-term economic analysis for brokers and trading customers; long-term analysis for the asset management division; marketing the firm's expertise; and strategic planning as a member of the firm's executive committee.
A futures commission merchant is an individual (or company) who handles a sizable portion of the futures orders executed on a trading floor and who owns a seat on the commodity exchange.
The Order finds that from December 1, 2014, to September 24, 2017, ADM Investor Services Inc., a registered futures commission merchant which guaranteed Essex, failed to adequately supervise its employees to ensure (i) they properly executed bunched orders, and (ii) they executed orders for non-discretionary Essex customers only when Essex had obtained specific customer authorization for the transaction.
Commodities broker Marex Spectron has announced that it has signed an agreement to acquire the customer business of Chicago-based Rosenthal Collins Group LLC (RCG), a Futures Commission Merchant (FCM), the company said.
UK-based commodities broker Marex Spectron has agreed to acquire the customer business of Chicago, US-based futures commission merchant Rosenthal Collins Group LLC (RCG), the company said.
The court further finds that, from at least July 16, 2011 and continuing through at least July 27, 2012, Oakmont, by and through its employees, solicited retail customers by telephone to engage in financed precious metals transactions, which constitute illegal off-exchange retail commodity transactions and acted as a futures commission merchant without being so registered.
Alpari (US), LLC is dually registered with the CFTC as a Futures Commission Merchant and Retail Foreign Exchange Dealer and has been a member of the NFA since 2007 - Member ID: 0379678.
MF Global, a futures commission merchant, filed for bankruptcy Oct.
FXCM is a registered retail foreign exchange dealer and futures commission merchant headquartered in New York.