CFTC Releases New FCM Data for February, 2011

Usually this shows up in my Inbox but today I got word from industry colleague Mike Wilkins via Twitter that CFTC had released the new FCM Customer Seg Fund and Customer Secured Funds. I’m still looking at this in my Inbox but for now, let’s look at the data.

Here is the report in PDF form sorted alphabetically. The data is as-of February 28th, with a reporting date of March 31, published by CFTC on April 11.

As usual, I like to take the CFTC report in Excel format and sort it by Customer Seg Funds. fcmdata0311 Sorted By Seg. It is sometimes interesting to me to take a look at some points that literally leap off the page.

Example: in the top 25 of FCMs as measured by Customer Seg Funds is McVean Trading, weighing in at 23 on the list. Put another way, they are the 23rd largest FCM in the U.S. as measured by Customer Segregated Funds. Interestingly enough, their Customer 30.7 funds – sometimes called Secured Funds – is zero. McVean is the largest of the U.S.-based FCMs that focuses entirely on U.S. exchange trading. And large McVean is, with more than $800 million set aside for the benefit of their customers.

And look at Newedge at the top, and Goldman right behind, with $30 trillion ed. note: billion and $28 trillion ed. note: billion in Customer Seg PLUS Customer Secured set aside for the benefit of their customers. Newedge has more than $2.5 trillion ed. note: billion dollars more than Goldman in Customer Seg. Enormous for a non-Too Big To Fail entity who received no TARP money.

Nine out of the top ten – comprising (get this) more than $100 trillion ed. note: billion – all use the same back-office system to process their exchange-traded U.S. regulated futures, and thus their Customer Segregated Funds.

When the time comes that CFTC starts requiring FCMs to include Customer Sequestered Money (a CME term that is approaching critical mass in terms of industry-wide acceptance), I’ll be very eager to see where that business lands – specifically, which back-office system users adopt. I have some thoughts on that. Some might call those thoughts ‘strong opinions.’ I’ll save that for a future post, perhaps.

In the meantime, without editorial commentary, here is the same data sorted exclusively by Customer 30.7 (Secured) Funds. It will give you some idea which U.S.-based FCMs have large business lines focused on non-CFTC-regulated exchanges. fcmdata0311 Sorted By 30.7

When the time comes, when my work experience and/or interests lead me that way, I’ll start exploring the FCM Retail Forex Obligation column. For the moment, those figures are outside my area of expertise and interest.

Closing: I’d ask you, readers: what figures from the sorted spreadsheets intrigue you?

One Response to “CFTC Releases New FCM Data for February, 2011”

  1. A Modest Proposal For A Better Way For Regulators To Track U.S. Futures Customer Segregated Funds « John P. Needham's Blog Says:

    […] talked about those CFTC releases several times in the past: November, 2011 and June, 2011 and February, 2011, for […]

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