FCM - which one is the safest? or largest = safest?

Spectre2007

Spectre2007

Which FCM is the safest?..

Technically if there is compliance with regulations, a FCM shouldn't fail. Is the safest, the largest? Not sure if this is valid either. Look at the issues with MF Global, and FXCM in regards to regulations and compliance.

What are the requirements in forming your own FCM?

A IB introducing broker seems easier, but still have to rely on FCM to park and clear funds/trades.


Chris
 
Spectre2007 said:
Which FCM is the safest?..

Technically if there is compliance with regulations, a FCM shouldn't fail. Is the safest, the largest? Not sure if this is valid either. Look at the issues with MF Global, and FXCM in regards to regulations and compliance.

What are the requirements in forming your own FCM?

A IB introducing broker seems easier, but still have to rely on FCM to park and clear funds/trades.


Chris
More...

The is an old list. Make note of the large, traditional FCMs on the list highlighted in bold. It is very difficult to get the best rates going to them directly. Most will need an IB, especially retail traders.

Special note on ADM, aka ADMIS, is backed by the one of the largest agricultural firms in the world.

If anybody can get RJO at .65c starting commission, pls send me a PM with the IB name.

*Rankings of FCM's by Customer Segregated Equity -April 30, 2011
- Non Broker Deals Only - (Source: CFTC)
- Ranked by Customer Segregated Funds*

JP MORGAN FUTURES INC: $17,628,775,299
PRUDENTIAL BACHE COMMODITIES LLC: $3,400,585,000
RJ OBRIEN ASSOCIATES LLC: $2,815,862,733
ADM INVESTOR SERVICES INC: $2,797,845,347
ROSENTHAL COLLINS GROUP LLC: $1,832,840,806
BNP PARIBAS COMMODITY FUTURES INC: $1,609,147,270
FCSTONE LLC: $1,164,476,821
PENSON FUTURES: $864,074,811
MCVEAN TRADING & INVESTMENTS LLC: $845,290,957
MACQUARIE FUTURES USA INC: $813,691,662
PEREGRINE FINANCIAL GROUP INC: $511,339,095
ADVANTAGE FUTURES LLC: $430,207,984
ENSKILDA FUTURES LTD: $388,754,287
RAND FINANCIAL SERVICES INC: $327,307,200
TENCO INC: $305,910,159
TRILAND USA INC: $214,973,309
COUNTRY HEDGING INC: $142,691,536
CROSSLAND LLC: $116,808,770
DORMAN TRADING LLC: $101,031,944
MBF CLEARING CORP: $93,507,639
OPEN E CRY LLC: $90,434,711
YORK BUSINESS ASSOCIATES LLC: $72,923,324
VELOCITY FUTURES LLC: $71,700,880
IRONBEAM INC: $62,508,657
MAREX NORTH AMERICA LLC: $59,730,683
CUNNINGHAM COMMODITIES LLC: $53,917,287
LINN GROUP THE: $42,285,565
FRONTIER FUTURES INC: $34,390,668
STERLING COMMODITIES CORP: $31,366,238
BNY MELLON CLEARING LLC: $31,161,559 <===Too Big to Fail.
AMP GLOBAL CLEARING LLC: $28,594,453
CX CAPITAL MARKETS LLC: $26,591,840
MID CO COMMODITIES INC: $25,551,108
IKON GLOBAL MARKETS INC: $16,928,151
FRIEDBERG MERCANTILE GROUP INC: $11,350,990
EAGLE MARKET MAKERS INC: $2,201,733
STRAITS FINANCIAL LLC: $1,443,739
GLOBAL FUTURES & FOREX LTD: $803,063
IG MARKETS INC: $156,289
 
Last edited:
Yes, anything is possible (and more probable) with derivatives.

I do not even have a concept of the various legal maneuvers by which customers of the blue chip firms may be left holding the bag.

You can use T-bills as margin collateral, which are registered to your name, as a form of protection. Is this correct?
 
Even large firms can get into trouble if parent company engages in speculative derivatives exposure. Seems best to stick to firms that don't diversify. Diversification leads to exposure of risk in other ways.
 
my 2cents... look at the size of State Street. the size of assets they sit on represents about 11%+ of all assets worldwide. needless to say, they are huge, making even outfits like FCStone or RJO look like dwarves.

the reason i mention State Street is because they own Currenex and FXConnect.

that being said, Currenex is well connected to a wide pool of liquidity but offers any broker offering it as a platform the ability to B-book client flow.
 
why would you look at segregated client equity. i would look at excess net capital as a start but you also need to look at the equity segment capital position of a company
 
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xandman said:
The is an old list. Make note of the large, traditional FCMs on the list highlighted in bold. It is very difficult to get the best rates going to them directly. Most will need an IB, especially retail traders.

Special note on ADM, aka ADMIS, is backed by the one of the largest agricultural firms in the world.

If anybody can get RJO at .65c starting commission, pls send me a PM with the IB name.

*Rankings of FCM's by Customer Segregated Equity -April 30, 2011
- Non Broker Deals Only - (Source: CFTC)
- Ranked by Customer Segregated Funds*

JP MORGAN FUTURES INC: $17,628,775,299
PRUDENTIAL BACHE COMMODITIES LLC: $3,400,585,000
RJ OBRIEN ASSOCIATES LLC: $2,815,862,733
ADM INVESTOR SERVICES INC: $2,797,845,347
ROSENTHAL COLLINS GROUP LLC: $1,832,840,806
BNP PARIBAS COMMODITY FUTURES INC: $1,609,147,270
FCSTONE LLC: $1,164,476,821
PENSON FUTURES: $864,074,811
MCVEAN TRADING & INVESTMENTS LLC: $845,290,957
MACQUARIE FUTURES USA INC: $813,691,662
PEREGRINE FINANCIAL GROUP INC: $511,339,095
ADVANTAGE FUTURES LLC: $430,207,984
ENSKILDA FUTURES LTD: $388,754,287
RAND FINANCIAL SERVICES INC: $327,307,200
TENCO INC: $305,910,159
TRILAND USA INC: $214,973,309
COUNTRY HEDGING INC: $142,691,536
CROSSLAND LLC: $116,808,770
DORMAN TRADING LLC: $101,031,944
MBF CLEARING CORP: $93,507,639
OPEN E CRY LLC: $90,434,711
YORK BUSINESS ASSOCIATES LLC: $72,923,324
VELOCITY FUTURES LLC: $71,700,880
IRONBEAM INC: $62,508,657
MAREX NORTH AMERICA LLC: $59,730,683
CUNNINGHAM COMMODITIES LLC: $53,917,287
LINN GROUP THE: $42,285,565
FRONTIER FUTURES INC: $34,390,668
STERLING COMMODITIES CORP: $31,366,238
BNY MELLON CLEARING LLC: $31,161,559 <===Too Big to Fail.
AMP GLOBAL CLEARING LLC: $28,594,453
CX CAPITAL MARKETS LLC: $26,591,840
MID CO COMMODITIES INC: $25,551,108
IKON GLOBAL MARKETS INC: $16,928,151
FRIEDBERG MERCANTILE GROUP INC: $11,350,990
EAGLE MARKET MAKERS INC: $2,201,733
STRAITS FINANCIAL LLC: $1,443,739
GLOBAL FUTURES & FOREX LTD: $803,063
IG MARKETS INC: $156,289
More...
Since PEREGRINEFINANCIAL GROUP, aka PFGBest is on this list it is indeed old. It also demonstrates the limits of such lists!
 
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