calendar months

Also, the best brokerages have marketing assistance to affiliates and IBs with banners, landing pages, and embeddable materials for websites. A lot of people are slightly confused regarding the difference between a Forex Affiliate and an Introducing Broker. As formerly mentioned, Introducing Brokers are given important amounts of information concerning their referrals and are frequently expected to foster relationships with those customers. Therefore, an affiliate will receive only a few details regarding the activities of those who signed up under their affiliate link. This leaves the brokerage itself as the one responsible for fostering a relationship with the purchaser, with the affiliate simply attracting business.

If a swap is structured such that on specified dates any outstanding exposure is settled and the terms are reset so that the market value of the swap is zero, the remaining maturity equals the time until the next reset date. We expect the Commission to clarify that a single introducing broker is able to use multiple unaffiliated executing brokers to handle orders on an agency basis . An introducing broker is an individual or organization that solicits or accepts orders to buy or sell futures contracts, commodity options, retail off-exchange forex contracts, or swaps but does not accept money or other assets from customers to support these orders. Calculation of aggregate uncollateralized outward exposure. The aggregate uncollateralized outward exposure shall be the sum of those uncollateralized amounts across all of the person’s swap counterparties in the applicable major category.

Attractive market

For these purposes, the terms daily average aggregate uncollateralized outward exposure and daily average aggregate potential outward exposure shall be calculated the same way as is prescribed in the definition in this section of substantial position, except that these amounts shall be calculated by reference to all of the person’s swap positions, rather than by reference to a specific major swap category. For positions in swaps that are not subject to daily mark-to-market margining and are not cleared by a registered or exempt clearing agency or a derivatives clearing organization, potential outward exposure equals the total notional principal amount of those positions, multiplied by the following factors on a position-by-position basis reflecting the type of swap. For any swap that does not appropriately fall within any of the specified categories, the “other commodities” conversion factors set forth in the following Table 1 are to be used.

  • A person may, at its discretion, calculate the potential outward exposure of positions in swaps that are subject to daily mark-to-market margining in accordance with paragraph of this definition in lieu of calculating the potential outward exposure of such swap positions in accordance with paragraph of this definition.
  • The key is to keep earning commissions, and you will earn commissions by trades.
  • This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.
  • Finally, the fact that portions of the CFTC’s anti-fraud regulations are similar to the anti-fraud provision of the Securities Exchange Act is irrelevant to the inquiry into the CFTC’s jurisdiction in this case.
  • These terms each mean any transaction or agreement in interstate commerce which is or is held out to be of the character of, or is commonly known to the trade as, an “option,” “privilege,” “indemnity,” “bid,” “offer,” “call,” “put,” “advance guaranty,” or “decline guaranty,” and which is subject to regulation under the Act and the regulations in this chapter.

And they have a small explanation as to what, you know, product or service that is being offered. That’s all they have is one or two sentences, I think, wherefor some reason twenty-four characters comes to mind is what you got to explain. Defendants moved for judgment on the pleadings, or in the alternative, for summary judgment seeking judgment on all counts of the Complaint.

The Investors’ Marketplace lets individual traders and investors, institutions and third-party service providers meet and do business together. Easily maintain different fee schedules for multiple client accounts. Apply client fee schedules to individual accounts or store them in templates. If you land a client early on who makes high-value trades only occasionally, that is good. If you have a client who is a rookie trader and wants to keep making trades every few days with moderate amounts, that is also good. The key is to keep earning commissions, and you will earn commissions by trades.

Exemptions for Institutional-Only Broker-Dealers

Introducing broker earns through commission payments. Clients pay directly to the FCM, who executes the trade. Resident or firm with only non-US customers who submits all trades to an FCM. Now let us discuss how to become an introducing broker. First, there is a separate IB registration process.


This often means it is much easier to become an affiliate than an Introducing Broker, as a brokerage has to do less to check the suitability of the person promoting the brokerage. Some IBs operate as individuals; others operate as a firm. IBs handle the customer-facing side of stock trading.

For complete information, see Provides retail clients with USD 0 commissions on US listed stock and ETF trades. Our statements and reports cover real-time trade confirmations, margin details, transaction cost analysis, sophisticated portfolio analysis, tax optimization and more. And if you need trade surveillance support, we may be able to help. Our proprietary API and FIX CTCI solutions let institutions create their own automated, rules-based trading system that takes advantage of our high-speed order routing and broad market depth.

Related Legal Terms

This term means any day other than a Sunday or holiday. In all notices required by the Act or by the rules and regulations in this chapter to be given in terms of business days the rule for computing time shall be to exclude the day on which notice is given and include the day on which shall take place the act of which notice is given. Therefore, in Europe there is no requirement that Introducing Brokers be regulated, which principally allows any individual or company to act as an Introducing Broker by presenting new customers to a brokerage. Even though the potential Introducing Broker may have to undergo a vetting technique and will also be required to offer identification and documents, in order to verify they are who they say.

If the swap is not accepted for clearing by a derivatives clearing organization, the insured depository institution reports the swap as required by section 4r of the Act, 7 U.S.C. 6r (except as otherwise provided in section 4r, 7 U.S.C. 6r, or section 4r, 7 U.S.C. 6r of the Act). The person must keep such representation in accordance with § 1.31. For purposes of section 1a of the Commodity Exchange Act and this definition, the term foreign exchange forward has the meaning set forth in section 1a of the Commodity Exchange Act. A foreign exchange forward or a foreign exchange swap shall not be considered a swap if the Secretary of the Treasury makes a determination described in section 1a of the Commodity Exchange Act. A swap shall be considered to be subject to daily mark-to-market margining if, and for so long as, the counterparties follow the daily practice of exchanging collateral to reflect changes in the current exposure arising from the swap .

Comments or questions about document content can not be answered by OFR staff. Please do not provide confidential information or personal data. The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. We recommend you directly contact the agency responsible for the content in question.

Find other enlightening terms in Shmoop Finance Genius Bar(f)

Solomon is the gold standard for customer service. I passed the 66, SIE first tries — received a 69% on the 7 , but passed on the 2nd attempt. I’m in awe over the outreach I received from day 1 but especially from Jeremy on how to move forward after falling short on the Series 7 – followed his advice – one of which was to get the accompanying videos and passed. Watching/studying the Chapter 5 video had a big impact. I also printed the questions I got wrong that I particularly struggled with while taking the online exams, printed and/or turned them into flashcards, then taped many of them around the house. It forced me to constantly revisit the information and moved me past a superficial understanding.

A person that is deemed to be a major swap participant shall continue to be deemed a major swap participant until such time that its swap activities do not exceed any of the daily average thresholds set forth within this rule for four consecutive fiscal quarters after the date on which the person becomes registered as a major swap participant. Notwithstanding paragraphs and of this definition, the term “futures customer funds” shall exclude money, securities or property held to margin, guarantee or secure security futures products held in a securities account, and all money accruing as the result of such security futures products. Otherwise provides clearing services or arrangements that mutualize or transfer among participants in the derivatives clearing organization the credit risk arising from such agreements, contracts, or transactions executed by the participants.

The common define introducing broker exchanges include the New York Mercantile Exchange that trades in a variety of commodities, Chicago Board of Trade that trades in wheat, rice, soybeans, oats, corn, silver, gold, and ethanol, and the Intercontinental Exchange that trades in crude oil, electricity, and natural gas. Others include the CME Group, Kansas City Board of Trade, London International Financial Futures and Options Exchange, and the New York Board of Trade. A person who currently is registered as a swap dealer may apply to withdraw that registration, while continuing to engage in swap dealing activity in reliance on this section, so long as that person has been registered as a swap dealer for at least 12 months and satisfies the conditions of paragraph of this definition. Registration period for persons that can no longer take advantage of the exception. An agreement, contract, or transaction that is willfully structured to evade any provision of Subtitle A of the Wall Street Transparency and Accountability Act of 2010, including any amendments made to the Commodity Exchange Act thereby , shall be deemed a swap for purposes of Subtitle A and the rules, regulations, and orders of the Commission promulgated thereunder. For futures and commodity option positions, this term means the debit balance which would be obtained by combining the margin balance of any person with the net profit or loss, if any, accruing on the open futures or commodity option positions of such person.

Daily average aggregate potential outward exposure. An issuer of securities that is an issuing entity of an asset-backed security as defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c). Any commodity pool operator which, acting in its capacity as a commodity pool operator, solely operates commodity pools, regardless of whether that commodity pool operator is registered or exempt from registration in such capacity. Does not accept any money, securities, or property to margin, guarantee, or secure any trades or contracts that result or may result therefrom. Not held to hedge or mitigate the risk of another swap or security-based swap position, unless that other position itself is held for the purpose of hedging or mitigating commercial risk as defined by this definition or § 240.3a67–4 of this title. New York Yankees legend Yogi Berra once said, “Nothing succeeds like success.” This is certainly true as an introducing broker, particularly in the environment of internet reviews where reputation is everything.

Broker-dealer/FCMs! You need to have a talk with your clients about … – Lexology

Broker-dealer/FCMs! You need to have a talk with your clients about ….

Posted: Wed, 08 Feb 2023 08:00:00 GMT [source]

Structured products and fixed income products such as bonds are complex products that are more risky and are not suitable for all investors. Before trading, please read the Risk Warning and Disclosure Statement. Welcome to the RJO Futures trading terms glossary. Within this glossary, you will find an expansive list of trading terms covering commodity, option, and futures trading terminology. Bookmark this section as a quick reference for definitions of trading terms as you browse the Internet and our site for more information on futures and options trading within the financial and commodities markets.

This provision prohibits persons who offer to enter into, enter into or confirm the execution of any transaction involving any commodity, to do so contrary to CFTC’s rules and regulations. Accordingly, any rules or regulations promulgated by the CFTC, including the anti-fraud regulations at issue in this case, are applicable only to entities who engage in the activities listed in § 4c. First, Defendant advertisers’ primary goal is to obtain leads, not orders for commodity futures. The CFTC’s expert opines that Defendants’ «entire activities are tied to the number of leads that they generate» and Defendants conduct their advertisements «for the sole purpose of obtaining the names, phone numbers and addresses of individuals who may be interested in purchasing options.» . Defendants never collected any money from viewers of the advertisements and never received compensation for the number of callers who subsequently opened accounts through an Introducing Broker.

Many eager candidates want to make the most out of their money, but they need a helping hand to understand trading platforms and how brokerages work. Reaching out to them will enhance their financial opportunities and create strong returns for you, your clients and your brokerage partner. If you have a common name like John Smith , consider using a more distinctive name that Google will immediately hone in on. If you’re operating an honest business, there is absolutely nothing wrong with using a professional name. If you don’t want to change your name, try always using it in conjunction with a distinctive brand name or a corporate name that advertises your IB service. Once you have a unique, Google-friendly identity that compliments your role as a Forex introducing broker, it’s time to get your name and links published across the internet.

If the viewer was calling in to a commodities advertisement, the answering service operator would give the caller a short description of the product or service being offered and would try to obtain the callers name, address and telephone number in order to create a «lead.» All registered FCMs and IBs are required to be members of the National Futures Association , and may also be members of one or more designated contract markets . The NFA and the commodity exchanges are self-regulatory organizations that are required to enforce CFTC-approved minimum financial and reporting requirements for their members. In determining whether a person is a swap dealer, that person’s swaps with majority-owned affiliates shall not be considered. Insured depository institution swaps in connection with originating loans to customers.

Guide to Broker-Dealer Registration –

Guide to Broker-Dealer Registration.

Posted: Thu, 16 Feb 2023 15:33:51 GMT [source]

The term swap dealer does not include a person that enters into swaps for such person’s own account, either individually or in a fiduciary capacity, but not as a part of regular business. An interest rate swap or currency swap, including but not limited to a transaction identified in paragraph of this definition, that is willfully structured as a foreign exchange forward or foreign exchange swap to evade any provision of Subtitle A shall be deemed a swap for purposes of Subtitle A and the rules, regulations, and orders of the Commission promulgated thereunder. The terms swap as used in section 1a of the Commodity Exchange Act and security-based swap as used in section 1a of the Commodity Exchange Act do not include an agreement, contract, or transaction that was entered into on or before the effective date of paragraph of this definition, and that, at such time that it was entered into, was provided in accordance with the conditions set forth in paragraph of this definition. For swap positions other than commodity option positions, this term means the credit balance which would be obtained by combining the margin balance of any person with the net profit or loss, if any, accruing on the open swap positions of such person.


An introducing agent earns a commission for referrals. IBs do not execute trades themselves; they refer the client to someone on the trading floor. The client directly pays the FCM, who runs the business. Many IBs are one-person operations, while others are larger, multi-location businesses. IBs are better able to service their clients as they are local, and their primary goal is customer service.