Who qualifies as an ECP?

An eligible contract participant (ECP) is an entity or individual allowed to engage in certain financial transactions that are not open to the average investor. ECPs are often corporations, partnerships, organizations, trusts, brokerage firms, or investors that have total assets in the millions.

Do you have to be an ECP to trade on a DCM?

The Dodd-Frank Act makes it unlawful for a person who is not an ECP to enter into a swap other than on or subject to the rules of a designated contract market (DCM).

Who can trade on DCM?

Designated contract markets (DCMs) are exchanges that may list for trading futures or option contracts based on all types of commodities and that may allow access to their facilities by all types of traders, including retail customers.

What is an eligible commercial entity?

An eligible commercial entity is a company authorized to make and take the delivery of commodities in commodities futures trading. Their requirements are set out in the Commodity Exchange Act (CEA) and their activities are regulated by the Commodity Futures Trading Commission (CFTC).

Is a swap dealer an ECP?

Commission Regulations §§ 1.3(m)(1)-(4) provide that the ECP definition now includes swap dealers, security-based swap dealers, major swap participants and major security-based swap participants, as those terms are defined in the Page 6 Commodity Futures Trading Commission ♦ Office of Public Affairs ♦ 202-418-5080 CEA …

Do all swaps are required to be transacted on a designated contract market?

Designated contract markets (DCMs) are boards of trade (or exchanges) that operate under the regulatory oversight of the Commodity Futures Trading Commission (CFTC). According to the Act, any swap eligible for clearing must be transacted on an exchange, or on a SEF.

Who owns Erisx?

Eris Exchange, LLC
Eris Clearing, LLC/Parent organizations

What is the difference between a SEF and a DCM?

DCMs offer CFTC-regulated exchange-traded derivatives products, such as futures and options. Unlike swap execution facilities (SEFs), which permit open access to market participants, DCMs can only be accessed by entering into an agreement with a futures commission merchant (FCM) that is a member of that DCM.

What is an excluded commodity?

Excluded Commodity: In general, the Commodity Exchange Act defines an excluded commodity as: any financial instrument such as a security, currency, interest rate, debt instrument, or credit rating; any economic or commercial index other than a narrow-based commodity index; or any other value that is out of the control …

What is a commercial entity example?

Commercial Entity means any corporation, partnership, limited partnership, proprietorship, sole proprietorship, firm, enterprise, franchise, or association that performs a commercial activity in this state.

Who can trade on SEF or DCM?

Section 5h(a)(1) of the Act provides that any person who offers a trading system or platform in which more than one market participant has the ability to execute or trade swaps with more than one other market participant on the system or platform must apply to the Commission to register as a SEF or be designated as a …