What is a Futures Clearing Merchant (FCM)?

A Futures Clearing Merchant is an organization that solicits or accepts orders to buy or sell futures or options contracts

A Futures Clearing Merchant is an organization that solicits or accepts orders to buy or sell futures or options contracts and accepts money or other assets from customers in connection with such orders. FCM’s work with the exchanges to handle confirmation, delivery, and settlement of transactions. In addition, they hold customer funds and supply statements to clients. Most FCM's act as exchange liaisons for Introducing Brokers and rely on them to communicate with clients.