What is an FCM in trading?
A futures commission merchant (FCM) is an entity that 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.
Is an FCM a broker dealer?
Notice registered futures commission merchants (FCM) and introducing brokers (IB) are SEC-registered broker-dealers that limit their futures-related activities to the sale of security futures products on contract markets.
Can FCM act as clearing broker?
A FCM may act as intermediary between a customer and exchange members that actually execute or clear trades. Additionally, a FCM may be a member of an exchange and serve as a clearing member.
How does an FCM make money?
FCMs make money through commissions and interest income. Their profit is falling due to a number of market and rule changes. The brokers hold client money in what are known as “segregated accounts,” and they are entitled to invest that money in low-risk securities.
How many FCMs are there?
six FCMs
The FCM selection process is different based on the specific needs of each client, and our clients are divided amongst the six FCMs that we use. Some FCMs that managed futures investors should stay away from are the ones that are not equipped to handle managed futures accounts.
How often must clearing FCM test lines of credit?
(8) Test all lines of credit at least once per year. (2) Keep full, complete, and systematic records documenting its compliance with this regulation.
Can a FCM hold customer funds?
NOTE: Commission rules currently permit an FCM to hold customer funds deposited for other purposes in the foreign futures and foreign options secured amount account. Such funds may currently be held in the foreign futures and foreign options secured amount account.
What does FCM stand for?
FCM
| Acronym | Definition |
|---|---|
| FCM | Fixed Content Management (software) |
| FCM | Frequency Controlled Motor |
| FCM | Financial Capital Maintenance |
| FCM | Facilitated Compliance Management |
How often must an FCM file its leverage report?
Futures commission merchants (FCMs) must file monthly unaudited financial reports (Form 1-FR-FCM) with the Commission and their designated self-regulatory organizations.
What is a non clearing FCM?
A non-clearing FCM, or “carrying broker,” maintains its customers’ positions with another FCM that is a clearing member. Customer margin collateral, including cash and securities, deposited with an FCM may be used by the FCM to meet the FCMs customer account margin requirements at the CCP.
How does an FCM work?
The Android push notifications through FCM actually treats the Data Messages as notification messages itself. As the interactions in the data messages are handled by the app itself, FCM’s work is just to deliver a notification and the message content. A Mobile app. Connection to the FCM server.
How often must a clearing FCM test lines of credit?
What does total amount of retail forex obligation mean?
Total Amount of Retail Forex Obligation: This represents the total amount of funds at an FCM, RFED, or FCMRFD that would be obtained by combining all money, securities and property deposited by a retail forex customer into a retail forex account or accounts, adjusted for the realized and unrealized net profit or loss.
What does FCM part 30 secured amount mean?
Customer Part 30 Secured Amount: This represents the amount of funds an FCM is required to set aside for customers who trade on commodity exchanges located outside of the United States.
What does 4d ( a ) ( 2 ) mean in FCM report?
Customers’ 4d (a) (2) Seg Required: This represents the total amount of funds that an FCM is required to segregate on behalf of customers who are trading on designated contract markets (DCMs). This is the sum of all accounts that contain a net liquidating equity.