(Editor’s note: Futures commission merchants (FCMs) have been facing major challenges in the years after the Great Recession and many FCMs have left the market entirely. However, Yuriy Shterk, head of product management for the Derivatives, Americas unit at Fidessa, says that there may be better days ahead for FCMs. Shterk, who is based in… Read More >>
Are FCMs Going to Survive?
(Editor’s note: Are futures commission merchants (FCMs) headed for extinction? It’s a fair question as the number of them, 64 as of this past March, has dropped by more than 50 percent over the past 15 years — a key point made in a special report authored by Hester Peirce, director of the financial markets… Read More >>
Credit Suisse to Leverage FIS Utility
Swiss banking giant Credit Suisse will be outsourcing its post-trade futures and cleared over-the-counter derivatives operations and technology to banking and payments technology vendor FIS in order to leverage the cost savings of a utility model, bank officials say. The Derivatives Utility from FIS targets market participants “including futures commission merchants (FCMs)” that want cost-efficient… Read More >>
JPMorgan Penalized $225K for Reporting Errors
Officials at JPMorgan Ventures Energy Corp. (JPMVE) and JPMorgan Chase, N.A. (JPMCB) have an idea of how much errors in large trader reports (LTRs) will cost them as the CFTC recently issued an order settling charges and imposing a $225,000 civil monetary penalty. For the Large Trader Reporting program, the CFTC operates “a comprehensive system… Read More >>
Bigger Volumes Meet Fewer FCMs
Fewer futures commission merchants are handling greater volumes of U.S. customer segregated funds compared to a decade ago, resulting in 75% of these funds being held by 10 major FCMs, reports John P. Needham, president of Needham Consulting, in his presentation for FTF’s DerivOps Chicago conference this week. The segregation of funds stipulates that broker-dealers… Read More >>
