As I’ve mentioned before, Customer Segregated Funds is a uniquely U.S.-centric measurement of FCM ‘size’ but I think it is often useful to look at the data this way. It is, after all, the only regulator-required measurement readily available.
A few observations:
First, Newedge leads the pack, again, when looking strictly at Customer Seg Fund. Newedge has a little less that $2 billion more Customer Seg than the Number Two on the list, Goldman Sachs. Newedge has $21.6 billion in Customer Seg; Goldman has $19.6.
It is interesting to me to note that the top 5 brokers (Newedge, Goldman, Deutsche Bank, J.P. Morgan Securities, and Citigroup) collectively have more than 52% of all the Customer Seg Funds reported to CFTC.
Merrill Lynch, UBS, MF Global, Barclays Capital and Credit Suisse round out the top 10 on the list. Along with the top 5 above, these 10 brokers comprise more than 76% of the Customer Seg Funds reported.
Add in the next 5 brokers from the list – Morgan Stanley, ADM, R.J. O’Brien, Prudential Bache, and Merrill Lynch Professional Clearing – and the top 15 names have more than 86% of the Customer Seg Funds reported.
Rounding out the top 20 – ABN Amro Chicago Clearing, RBS Securities, Rosenthal Collins Group, BNP Paribas, FC Stone – and more than 91% of Customer Seg Funds are held at the top 20 brokers on the list.
Also notable: while there are 123 names on the list, only 77 FCMs reported any Customer Seg Funds at all, as of June 30. But of those 77 names, 91% of the Customer Seg funds are held at just 20 FCMs.
Like before, McVean Trading in Memphis is the largest FCM to report Customer Seg Funds ($838 million) that also has no Foreign Secured Funds (aka 30.7 Funds) to report. Morgan Stanley Smith Barney LLC is the largest FCM reporting Customer Seg Funds ($562 million) whose Foreign Secured Funds ($1.9 billion) exceed the Customer Seg.
These are a few of the observations I made when looking over the list. When you look at the list, what tidbit of information leap off the page at you? If anything intrigues you, post it in the comments.