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 ?
The line that Gensler is walking is intended to allow him to participate in regulatory activities involving futures commission merchants in general without participating in activities involving MF Global in particular.
GCM is, and would continue to be, registered as a broker-dealer with the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934,(5) and as a futures commission merchant with the Commodity Futures Trading Commission ("CFTC") under the Commodity Exchange Act.
The regulations apply to banks and trust companies, savings associations, credit unions, securities brokers and dealers, mutual funds, futures commission merchants, and futures introducing brokers.
The rules require institutions such as banks, savings associations, broker and dealers, and futures commission merchants to establish procedures to verify the identities of new account holders.