Futures Agreements

Futures agreements are entered into to facilitate trading of futures and options on futures exchanges. Underlying assets include physical commodities and other financial instruments. These agreements are bespoke agreements provided by the futures commission merchants (FCMs) who act as the client’s agent vis-à-vis the exchange. FCMs are typically members of exchanges and must operate within the parameters established by these exchanges.

• Fundamentals of Futures Trading Compliance for Broker-Dealers