Posts Tagged ‘Customer Segregated Funds’

FCM Data – August 2015

October 12, 2015

Ahead of FIA Expo – I’ll be in Chicago for it next month – I figured this was as good a time as any to post another sorted summary of the CFTC FCM Financial Data reports. Sourced from here, you already know the drill, no doubt: CFTC publishes the report every month based on FCM/Broker Dealer FOCUS Reports, and/or FCM 1-FR reports.

CFTC publishes the report listing FCMs alphabetically, I grab their Excel version and sort it by Customer Seg Required (Column J). The amount of money in Customer Seg – aka Seg Required – is a pretty reliable and useful measure of the relative health of the US derivatives industry.

The sorted report is here: fcmdata0815 Sorted By Seg

Tops is Goldman Sachs, at a little under $24 billion. That’ roughly 25% higher than the second largest amount in Seg Required, JP Morgan at $17.2B. Third is SocGen (formerly Newedge) at $13.8B, then Morgan Stanley at $12.5B, and fifth largest is Merrill Lynch (BAML) at around $12.4B.

Relevant: there are 73 FCMs that submitted reports to CFTC, but only 56 of them had any Customer Seg amounts at all. And one of those – Jefferies (formerly Prudential Bache, before that Bache Securities) is winding down, so soon, there will be just 55 FCMs from which derivatives customers can choose.

Anyway, that’s it for now. If you’re in Chicago, or traveling there for FIA Expo, look for me on the trade show floor, or at some of the panels!

FCM Data – April 2015

June 10, 2015

By now you know the drill: CFTC publishes FCM data from the FCM 1FR reports, or from the broker/dealer FOCUS reports, every month. Every once in a while I download the CFTC report from here and re-sort the report by Customer Segregated Funds Required (Column J).

The report sorted by Customer Seg Req’d is here.

In July, 2014, the total Customer Seg reported by FCMs was $148,214,002,848.

In April, 2015 the total was $149,913,404,903, up a little bit.

The top five FCMs carry 51% of the Customer Seg, those FCMs are Goldman, JP Morgan, SocGen (formerly Newedge), Merrill Lynch and Morgan Stanley.

Add in the next five FCMs are the top-10 carry 74% of the Customer Seg balances. Rounding out the top-10 are Credit Suisse, UBS, Citi, Barclays, RJ O’Brien.

23 FCMs carry more than a billion dollars in Customer Seg, ranging from Goldman ($22B) at the high-end, to the winding down Jeffereis at the low end (just under $1.5B).

Just 57 FCMs reported any Customer Seg balances at all. That’s down six from just last July. And it is down more than 40% in the past 10 years.

I spoke about this a little more than a year ago at the FTF Derivops Conference in Chicago. At year-end 2003, 177 FCMs submitted FOCUS/1FR reports to CFTC. Ten years later, at year-end 2013, just 102 did. By April 2015, that number had dwindled to just 75.

At year-end 2003, 102 FCMs reported to CFTC that they cleared customer business (Customer Seg balances) At year-end 2013, just 69 did. By April 2015, that number had dwindled to just 57.

These are awful numbers, it is an awful trend.

What are your thoughts?

2014 Year-End Customer Seg Figures

February 26, 2015

I’ve been away for a bit, but I saw when I was out that the CFTC published the FCM Financial Data report for December, 2014, so I figured I’d create a post and compare some of the high-level figures to the 2013 year-end report.

CFTC FCM Data Report Page

And here is the December 2014 report sorted by Customer Seg.

Dec2014-Sorted-By-Seg

Total Customer Seg reported was $136,456,771,305. That’s down almost $7B from the 2013 year-end figure of $143,741,158,888. In 2012 the total Customer Seg report showed $145,900,203,492.

Only 66 FCMs reported Customer Seg balances in December 2013. 69 FCMs reported Customer Seg in December 2013.

The top-5 in 2014 were:

Goldman Sachs at $20,285,919,590
JP Morgan at $17,447,852,777
Merrill Lynch at $11,208,908,563
Morgan Stanley at $10,031,840,202
Deutsche Bank at $9,773,050,189

Goldman and JPM were the top-2 in 2013, followed by Newedge (now called SG Americas and not reporting any Customer Seg; confusing, that), Deutsche and Morgan Stanley.

I do wonder what happened to SocGen’s report. The December 2014 report list Newedge among the deletions, and lists SG Americas Securities as an addition, but SG Americas reported zero in Customer Seg in the list above, sorted by Customer Seg Required.

November 2014 FCM Financial Data

January 18, 2015

By now you all know the drill: the CFTC publishes monthly financial data for FCMs, or futures commission merchants. Every once in a while, I download the spreadsheet and sort it by Customer Segregated Funds, which I consider among the most useful measures of the relative health of the U.S. futures market.

Then I post the sorted report here, mainly for my own reference, but for yours, too, if you want. Since the FIA Divisions Meetings are this week in Florida, and since CFTC published the latest report this past week, I figured this was a good time to post a fresh update.

Here is the November, 2014 data.

See anything interesting in the report?

Observations:

– JPM is tops, as measured by Customer Seg. GS is second. GS was first last month, with JPM second.
= DB is 5th, with $10.5B; the top five all have more than $10B. Morgan Stanley is 6th, at $9.9B.
– 25 FCMs have more than $1B in Customer Seg.
– Only 59 US FCMs reported Customer Seg, and the last, LEK Securities, had less than $1MM.

2013 Year-End FCM Financial Data Report

February 16, 2014

Here are the 2013 results from the CFTC report on financial data for U.S. FCMs. The ORIGINAL source is here: CFTC Financial Data for FCMs

The same data sorted by U.S. Customer Seg required (FCM Data 2013 Year-End) is posted here. (Downloads as an Excel spreadsheet.)

For perspective, the same data (sorted by U.S. Customer Seg required) for year-end 2012 is posted here: (FCM Data 2012 Year-End) 2012 Year-End Results. (Also downloads as an Excel spreadsheet.)

The Details

The TOTAL US Customer Seg amount reported in 2013 was $143,741,158,888, compared to a 2012 amount of $145,900,203,492, down almost $2.15 billion. or roughly 1.5%.

Following is a list of all US FCMs that reported Customer Seg requirements in their December 2013 reports to CFTC.

1. Goldman Sachs – 1st in 2013, 1st in 2012, 2013 Seg required was $19,505,062,033 down about $600 MM.

2. JP Morgan Securities- 2nd in 2013, 2nd in 2012, 2013 Seg required was $16,068,072,825 down more than $2 B.

3. Newedge – 3rd in 2013, 3rd in 2012, 2013 Seg required was $13,164,428,650 down about $1.7 B.

4. Deutsche Bank – 4th in 2013, 4th in 2012, 2013 Seg required was $12,402,354,155 UP about $1.5 B.

5. Morgan Stanley – 5th in 2013, 7th in 2012, 2013 Seg required was $10,233,308,793 UP about $1.3 B.

6. Merrill Lynch – 6th in 2013, 8th in 2012, 2013 Seg required was $10,097,450,250 UP about $3 B.

7. UBS Securities – 7th in 2013, 5th in 2012, 2013 Seg required was $8,191,731,999 UP about $400 MM.

8. Credit Suisse – 8th in 2013, 9th in 2012, 2013 Seg required was $7,918,920,731 UP about $1.4 B.

9. Barclays Capital – 9th in 2013, 10th in 2012, 2013 Seg required was $6,377,915,171 UP about $170 MM.

10. Citigroup – 10th in 2013, 6th in 2012, 2013 Seg required was $4,844,742,715 down about $2.8 B.

11. RJ O’Brien – 11th in 2013, 11th in 2012, 2013 Seg required was $3,703,754,600 down about $100 MM.

12. ADM Investor Services – 12th in 2013, 12th in 2012, 2013 Seg required was $2,931,401,486 UP about $150 MM.

13. Mizuho Securities – 13th in 2013, 17th in 2012, 2013 Seg required was $2,054,124,905 UP about $300 MM.

14. BNP Paribas Prime Brokerage – 14th in 2013, 15th in 2012, 2013 Seg required was $2,019,918,460 UP bout $100 MM.

15. ABN AMRO Clearing Chicago – 15th in 2013, 13th in 2012, 2013 Seg required was $1,981,333,752 down about $500 MM.

16. Interactive Brokers – 16th in 2013, 16th in 2012, 2013 Seg required was $1,939,801,946 UP a little under $200 MM.

17. Jefferies Bache – 17th in 2013, 14th in 2012, 2013 Seg required was $1,879,889,000 down about $500 MM.

18. FC Stone – 18th in 2013, 19th in 2012, 2013 Seg required was $1,582,727,766 UP about $30 MM.

19. RBS Securities – 19th in 2013, 20th in 2012, 2013 Seg required was $1,449,331,490 down about $80 MM.

20. Rosenthal Collins Group – 20th in 2013, 18th in 2012, 2013 Seg required was $1,412,661,189 down about $17 MM.

21. MacQuarie Futures – 21st in 2013, 22nd in 2012, 2013 Seg required was $1,228,662,410 UP more than $230 MM.

22. HSBC Securities – 22nd in 2013, 21st in 2012, 2013 Seg required was $1,048,317,517 UP about $30 MM.

23. RBC Capital Markets – 23rd in 2013, 29th in 2012, 2013 Seg required was $913,109,618 UP about $350 MM.

24. BNP Paribas Securities – 24th in 2013, 31st in 2012, 2013 Seg required was $867,187,524 UP more than $300 MM.

25. Goldman Sachs Execution & Clearing – 25th in 2013, 24th in 2012, 2013 Seg required was $847,350,112 UP about $60 MM.

26. McVean Trading & Investments – 26th in 2013, 23rd in 2012, 2013 Seg required was $780,942,381 down about $140 MM.

27. Merrill Lynch Professional Clearing – 27th in 2013, 26th in 2012, 2013 Seg required was $768,875,721 UP about $160 MM.

28. Santander Investment – 28th in 2013, 30th in 2012, 2013 Seg required was $755,009,247 UP about $190 MM.

29. JP Morgan Clearing – 29th in 2013, 32nd in 2012, 2013 Seg required was $700,772,180 UP about $170 MM.

30. Timber Hill – 30th in 2013, 27th in 2012, 2013 Seg required was $697,230,646 UP about $85 MM.

31. Morgan Stanley Smith Barney – 31st in 2013, 25th in 2012, 2013 Seg required was $541,746,031 down about $110 MM.

32. Vision Fin’l Markets – 32nd in 2013, 28th in 2012, 2013 Seg required was $508,664,310 down a little more than $100 MM.

33. KCG Americas – 33rd in 2013, 34th in 2012, 2013 Seg required was $479,067,087 UP about $63 MM.

34. Advantage Futures – 34th in 2013, 33rd in 2012, 2013 Seg required was $472,691,258 down about $18 MM.

35. Tradestation – 35th in 2013, 35rd in 2012, 2013 Seg required was $405,195,906 UP about $17 MM.

36. State Street – 36th in 2013, 44th in 2012, 2013 Seg required was $313,855,544 UP more than $210 MM.

37. Rand Financial – 37th in 2013, 36th in 2012, 2013 Seg required was $305,541,900 down about $70 MM.

38. EFL Futures – 38th in 2013, NOT ON LIST in 2012, 2013 Seg required was $251,656,003 UP $251 MM.

39. ED&F Man Capital Mkts – 39th in 2013, 61st in 2012, 2013 Seg required was $224,076,887 UP around $200 MM.

40. Gain Capital – 40th in 2013, 43rd in 2012, 2013 Seg required was $141,613,581 UP around $28 MM.

41. Dorman Trading – 41st in 2013, 40th in 2012, 2013 Seg required was $139,473,664 UP around $5 MM.

42. CHS Hedging – 42nd in 2013, 39th in 2012, 2013 Seg required was $138,600,871 down around $62 MM.

43. Phillip Futures – 43rd in 2013, 38th in 2012, 2013 Seg required was $128,018,797 down around $90 MM.

44. UBS Financial Services – 44th in 2013, 42nd in 2012, 2013 Seg required was $127,693,950 UP around $11 MM.

45. BNY Mellon Clearing – 45th in 2013, 41st in 2012, 2013 Seg required was $127,163,740 UP a little over $2 MM.

46. TD Ameritrade – 46th in 2013, 45th in 2012, 2013 Seg required was $125,798,949 UP around $26 MM.

47. Straits Fin’l – 47th in 2013, 47th in 2012, 2013 Seg required was $105,553,578 UP around $21 MM.

48. Marex North America – 48th in 2013, 50th in 2012, 2013 Seg required was $103,751,249 UP around $26 MM.

49. Optionsxpress – 49th in 2013, 48th in 2012, 2013 Seg required was $88,080,380 UP around $2.5 MM.

50. Cunningham Commodities – 50th in 2013, 49th in 2012, 2013 Seg required was $78,442,862 down around $5 MM.

51. Linn Group – 51st in 2013, 51st in 2012, 2013 Seg required was $76,819,233 UP around $1.3 MM.

52. Crossland – 52nd in 2013, 46th in 2012, 2013 Seg required was $76,240,649 down around $8 MM.

53. Institutional Liquidity* – 53rd in 2013, NOT ON LIST in 2012, 2013 Seg required was $54,415,840 UP $54.4 MM.

54. York Business Associates – 54th in 2013, 53rd in 2012, 2013 Seg required was $50,049,543 down around $9.6 MM.

55. Nomura Securities – 55th in 2013, 59th in 2012, 2013 Seg required was $48,479,739 UP around $17 MM.

56. AMP Global Clearing – 56th in 2013, 56th in 2012, 2013 Seg required was $42,518,643 UP around $4.5 MM.

57. E Trade Clearing – 57th in 2013, NOT ON LIST in 2012, 2013 Seg required was $39,409,278 UP $39 MM.

58. Mid Co Commodities – 58th in 2013, 55th in 2012, 2013 Seg required was $36,944,999 down around $2 MM.

59. Ironbeam – 59th in 2013, 54th in 2012, 2013 Seg required was $36,264,716 down around $11.5 MM.

60. Xchange Financial Access – 60th in 2013, NOT ON LIST in 2012, 2013 Seg required was $27,685,254 UP $27.6 MM.

61. Frontier Futures – 61st in 2013, 60th in 2012, 2013 Seg required was $25,658,100 down a little less that $5 MM.

62. Wells Fargo Securities* – 62nd in 2013, NOT ON LIST in 2012, 2013 Seg required was $21,409,743 UP $21.4 MM.

63. Oppenheimer & Co. – 63rd in 2013, 58th in 2012, 2013 Seg required was $13,893,625 down around $19 MM.

64. GH Financials – 64th in 2013, 68th in 2012, 2013 Seg required was $6,012,801 UP about $5.5 MM.

65. Daiwa Capital Mkts America – 65th in 2013, 64th in 2012, 2013 Seg required was $4,340,614 UP about $1.3 MM.

66. Friedberg Mercantile Group – 66th in 2013, 62nd in 2012, 2013 Seg required was $3,996,235 down about $5 MM.

67. LEK Securities – 67th in 2013, 63rd in 2012, 2013 Seg required was $2,309,600 down about $2.5 MM.

68. Cantor Fitzgerald – 68th in 2013, 67th in 2012, 2013 Seg required was $1,312,018 UP about $100K.

69. Alpari (US) – 69th in 2013, 66th in 2012, 2013 Seg required was $322,439 down about $1.7 MM.

* – Institutional Liquidity and Wells Fargo Securities were both on the list as an FCM in 2012 but both FCMs had zero for Customer Seg Required.

U.S. FCM Data – July 2013

October 10, 2013

With the CFTC shut down along with much of the rest of the U.S. government, I figured this is as good a time as any to post the most recent CFTC FCM Financial Data report from their website. I downloaded the Excel file (from here) and sorted it by Customer Seg Required (Column J).

fcmdata0713 sorted by Seg Required

The by-now unsurprising results: more than 50% of all U.S. Customer Seg is in just five firms (Goldman, JP Morgan, Newedge, Deutsche Bank and UBS). The following five firms (Morgan Stanley, Merrill Lynch, Credit Suisse, Barclays and Citi) add another 25%. So 75% of Customer Seg is housed at just the top-10 FCMs. There are 69 FCMs that booked Customer Seg in this reporting period (July 2013). So 59 firms divide up 25% of the Customer Seg while 10 firms divide up 75%.

I’ll leave it to wiser folks than me to decide what this says about the health of the U.S. futures industry.

Drop in a comment: what do these figures tell you about the U.S. futures industry?

A Quick Look at MBF

April 10, 2013

MBF never had Customer Seg funds in the period I looked at below. The firm’s net capital requirements was never greater than the FCM minimum of $1,000,000 as required by CFTC. I don’t know why the firm de-listed as an FCM.

Source for the details below is here: http://cftc.gov/MarketReports/FinancialDataforFCMs/index.htm

June, 2013
Customer Assets in Seg: $0
Customer Seg Required: $0
Adjusted Net Capital: $1,311,027
Net Capital Required: $1,000,000

July, 2013
Customer Assets in Seg: $0
Customer Seg Required: $0
Adjusted Net Capital: $2,362,149
Net Capital Required: $1,000,000

August, 2013
Customer Assets in Seg: $0
Customer Seg Required: $0
Adjusted Net Capital: $2,099,107
Net Capital Required: $1,000,000

September, 2013
Customer Assets in Seg: $0
Customer Seg Required: $0
Adjusted Net Capital: $1,960,067
Net Capital Required: $1,000,000

October, 2013
Customer Assets in Seg: $0
Customer Seg Required: $0
Adjusted Net Capital: $1,872,412
Net Capital Required: $1,000,000

November, 2013
Customer Assets in Seg: $0
Customer Seg Required: $0
Adjusted Net Capital: $1,623,543
Net Capital Required: $1,000,000

MBF was deleted from the CFTC FCM Data Report in December 2012.