What does Futures Commission Merchant - FCM mean?
A firm that acts as an agent to execute buy or sell orders for futures contracts or commodity options. A Futures Commission Merchant buys and sells only for customer accounts on commission. It does not trade for its own account. FCMs in futures exchange perform roles similar to that of a stock broker in stock exchanges.
Futures Knowledge Explains Futures Commission Merchant - FCM
In futures market, a futures commission merchant solicits, accepts and executes orders to buy or sell futures contracts, options on futures, retail off-exchange forex contracts or swaps. A FCM makes the settlement and gets a transaction. As per the Commodity Exchange Act, futures commission merchants are required to be registered with the Commodity Futures Trading Commission (CFTC).