CFTC Releases Full Metrics For Every FCM & FX Dealer In North America

The US Commodity Futures Trading Commission (CFTC) has today released a full set of statistics which encompasses the full set of financial data for every Futures Commission Merchant (FCM) and FX Dealer Member (FDM) within its jurisdiction, based on reports filed on January 2, 2014 representing data as of November 30, 2013.

As a yardstick among the United States' financial institutions, Goldman Sachs reported the highest net adjusted capital at $15,375,609,515, substantially higher than that of Barclays, its peer from across the pond, which reported a net adjusted capital figure of $5,904,654,061

The performance and condition of FXCM is often considered a benchmark by which to measure other FX firms, and in this particular report, the company recorded a net adjusted capital figure as of November 30, 2013 of $56,257,002 and fulfilling its capital adequacy requirements quite comfortably with a net capital of $27,176,296 in clear funds.

Compatriot rival GAIN Capital's net adjusted capital stood at $41,523,231 as of November 30, 2013, and the company's capital adequacy more than satisfies the requirements of the National Futures Association with $24,661,190 set aside.

Japanese giant MONEX Group's North American subsidiary Tradestation recorded a net adjusted capital figure of $56,180,832 following several months of increasing activity and strong performance, whereas IBFX continues to dominate the US market with regard to retail FX commitment, with $71,145,240 committed to retail FX as of November 30, 2013, a figure substantially higher than the few remaining retail FX companies operating in the United States.

The set of statistics can be viewed in its entirety here:

https://www.cftc.gov/ucm/groups/public/@financialdataforfcms/documents/file/fcmdata1113.pdf

Handling of Client Funds

In addition to the announcement of these figures, the CFTC has today released a further notice which details that the CFTC is to provide time-limited relief with respect to compliance with certain conditions associated with the receipt of customer funds by futures commission merchants (FCMs) pursuant to Commission Regulations 1.20, 22.2, and 30.7.

This was issued to all FCMs in the form of a no-action letter, granting relief from compliance with certain conditions associated with the receipt of customer funds by FCMs.

The CFTC reiterated that this position is conditioned upon the FCM maintaining compliance with its obligation to hold sufficient funds in section 4d(a)(2) segregation accounts, Part 30 secured accounts, and cleared Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term accounts to meet the net liquidating Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term of all of the FCM’s customers in each respective account origin at all times, a metric which is confirmed for each FCM by the financial results detailed on the report issued today.

In North America's increasingly sparsely populated retail FX sector, it is most certain that customer protection is paramount.