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Futures Commission Merchants (FCMs)

  • Registration

    The Commodity Exchange Act requires all futures commission merchants (FCMs) and introducing brokers (IBs) to register as such, unless they qualify for an exemption, e.g.:

    • A firm handling transactions only for proprietary persons (such as the firm itself, affiliates, top officers, or directors) need not register as an FCM.
    • A non-U.S. firm with only non-U.S. customers does not have to register if it submits all trades for clearing to an FCM.

    Oversight of Registrants by Self-Regulatory Organizations

    All registered FCMs and IBs are required to be members of the National Futures Association (NFA), and may also be members of one or more designated contract markets (commodity exchanges). The NFA and the commodity exchanges are self-regulatory organizations that are required to enforce CFTC-approved minimum financial and reporting requirements for their members.

    Futures Commission Merchant and Introducing Broker Requirements

    FCMs and IBs must satisfy minimum standards for: