Futures regulation
What is a Futures Commission Merchant (FCM) and what are its strict financial capitalization requirements under the law?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
A Futures Commission Merchant executes and clears customer futures orders, required to meet strict CFTC minimum net capital rules to ensure financial solvency.
How it works
FCMs must segregate customer funds, file regular financial reports, and maintain adjusted net capital under CFTC Regulation 1.17 requirements.
An example
An FCM reports monthly adjusted net capital to the NFA.
Risk & limitations
Capital requirements change periodically; verify current CFTC rules.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.