Futures Commission Merchant (FCM) Registration
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.
Registration is required for an FCM unless the entity:
- Handles transactions only for the firm itself, firm's affiliates, firm's top officers, or firm's directors; or
- Is a non-U.S. resident or firm with only non-U.S. customers and submits all trades for clearing to a CFTC-registered FCM.
All registered FCMs must be NFA Members.
Registration Requirements for FCMs
To register as an FCM and become an NFA Member:
- Designate a Security Manager in order to obtain secure access to NFA's Online Registration System (ORS)
- Complete online Form 7-R
- Satisfy compliance requirements for FCM applicants
- Complete online Annual Questionnaire
- Pay a non-refundable application fee of $500
- Pay non-refundable FCM membership dues
Registration Requirements for Principals and Associated Persons (AP) of FCMs
- Complete online Form 8-R for each principal and AP
- Submit fingerprint cards
- Satisfy proficiency requirements for each sole proprietor, AP and forex AP; effective January 31, 2020, swap APs will be required to complete NFA's Swaps Proficiency Requirements by the compliance date of January 31, 2021
- Pay a non-refundable application fee of $85 for each principal and AP
An application fee for principals and APs is not required if the individual is currently registered with the CFTC in any capacity or is listed as a principal of a current CFTC registrant. Only one application fee is required if the individual is filing an application as both an AP and Principal. One principal must be an AP. One principal of a forex FCM must be a forex AP. One principal of a swap FCM must be a swap AP.