CFTC Staff Issues Futures Commission Merchant FAQs

WASHINGTON, D.C. — The Commodity Futures Trading Commission’s Market Participants Division (MPD) today published responses to frequently asked questions (FAQs) regarding registering an entity as a futures commission merchant (FCM) and the ongoing regulatory obligations of operating an FCM. The FAQs address, among other issues, the FCM registration process, customer protections, and governance obligations and other requirements. 

MPD has received an increased number of inquiries concerning the registration and operation of FCMs by entities that have not been registered with the CFTC or subject to oversight as a financial institution by a federal financial regulator. The responses to the FAQs are to assist entities in considering the significant responsibility of an FCM and the substantial resources needed to operate one.