What Is 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.
What is a qualified ECP? the concept of a “Qualified ECP Guarantor” – an. entity that is itself undoubtedly an ECP – that agrees. to provide funds or other support for the obligations. of each other guarantor under the loan documents.
What is ECP in finance? Eurocommercial paper (ECP) is a form of unsecured, short-term loan that is issued by a bank or corporation in the international money market. Notably, ECPs are denominated in a currency that is different from the domestic currency of the market where the paper—debt security, or bond—is issued.
What is an ECP NFA? Related Content. An entity that is classified by the Commodity Exchange Act (CEA) based on its regulated status or amount of assets.
Do you have to be an ECP to trade OTC swap?
Eligible Contract Participants No registration is required, but both parties must be ECPs and the transactions may not be executed or traded on a trading facility.
Is a security based 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 …
What are SEF trades?
Swap execution facilities (SEFs) are trading platforms intended for swaps products. They are mandated under the Dodd-Frank Wall Street Reform Act of 2010. Because of the complex nature of swaps, these platforms are not exchanges per se but they do function as a counterparty matching service.
Is an introducing broker an associated person?
An associated person (AP) is an individual who solicits orders, customers or customer funds (or who supervises persons so engaged) on behalf of a futures commission merchant (FCM), retail foreign exchange dealer (RFED), introducing broker (IB), commodity trading advisor (CTA) or commodity pool operator (CPO).
Do I need a license to trade futures?
Every commodity broker must be licensed and registered with the National Futures Association (NFA) as an “associated person.” To get that license, the applicant must pass a test called the Series 3 examination. The outline form for the test can be found on the NFA website.
Does NFA have jurisdiction to bring a disciplinary proceeding?
NFA has the authority to take disciplinary actions against any Member or Associate that violates its rules. If an NFA Member or Associate engages in conduct that puts customers, the futures markets, or other Members at risk, immediate action will be taken accordingly.
Can CFTC prosecute criminal violations?
Criminal activity involving commodity-related instruments can result in prosecution for criminal violations of the CEA and for violations of other federal criminal statutes, including commodities fraud, mail fraud, wire fraud and conspiracy.
Do you need to be an ECP to trade on SEF?
Part 1, can be traded on a SEF or pursuant to the rules of a SEF by Eligible Contract Participants (ECPs). … An applicant may operate as a SEF upon the Commission granting temporary registration.
Does a swap dealer make markets in futures?
A swap dealer is an individual or entity that serves as a swaps broker, makes markets in swaps, or enters into swaps contracts with counterparties.
Does an associated person of an introducing broker qualify as an eligible contract participant?
78a et seq.) or a foreign person performing a similar role or function subject as such to foreign regulation, except that, if the broker or dealer or foreign person is a natural person or proprietorship, the broker or dealer or foreign person shall not be considered to be an eligible contract participant unless the …
Who is a swap dealer?
A swap dealer (SD) is an entity that holds itself out as a dealer in swaps; makes a market in swaps; regularly enters into swaps with counterparties as an ordinary course of business for its own account; or engages in any activity causing the entity to be commonly known in the trade as a dealer or market maker in swaps …
Does NFA carries out the CFTC registration function for swap dealers?
The CFTC has delegated registration responsibility to NFA. All futures professionals required to register with the CFTC are granted registration only after a thorough investigation of their background to determine if they meet the fitness standards set forth in the CEA.
Is tradeweb a MTF?
Tradeweb has operated its multilateral trading facility (MTF) since 2007. It has been regulated by the FCA since its inception, and by the AFM since 2019. After Brexit, our MTFs will together continue to serve our clients in the EU and UK alike.
How does a swap work?
A swap is an agreement for a financial exchange in which one of the two parties promises to make, with an established frequency, a series of payments, in exchange for receiving another set of payments from the other party. These flows normally respond to interest payments based on the nominal amount of the swap.
What is SEF and 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.
Who has to register as a CPO?
Commodity pool operators are regulated by the CFTC. They must register with the CFTC as principals or as associated persons. A CPO may also be asked to pass the FINRA Series 31 exam.
How do Introducing brokers make money?
Depending on the broker, the introducing broker can work in any financial market including stocks, forex, futures, metals or commodities. Just like any other type of broker, Introducing Brokers earn their revenue based on a commission charged on their clients.
Who is required to be an associate member of NFA?
All registered FCMs, RFEDs, IBs, SDs, MSPs, CPOs and those registered CTAs who direct client accounts or provide tailored investment advice must be NFA Members. CFTC registered APs of NFA Members must be NFA Associate Members.
Can I take the Series 3 exam without a sponsor?
Unlike the Series 7 exam, candidates do not need to be sponsored by a firm in order to take the Series 3. Candidates must achieve a score of around 70% in each part to pass the exam. (There is no official pass rate, but the widely accepted pass rate is around 70%.)
Is the Series 7 Hard?
Is the Series 7 Exam Difficult? Clocking in at 125 questions to be answered in three hours and 45 minutes, the Series 7 exam is considered the most difficult of all the securities licensing exams. The minimum passing score is 72, which may not seem that difficult.
Do I need a Series 7 to trade?
Individuals who want to enter the securities industry to sell any type of securities must take the Series 7 examination—formally known as the General Securities Representative Examination.
Can NFA take enforcement action against all individuals?
NFA may take disciplinary action against any Member which fails to properly list all of its offices.