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Using data from the Commodity Futures Trading Commission (CFTC), the FCM Observer tracks the most notable changes in the Futures Commissions Merchants landscape. For a more in-depth look into any of the visualizations below, please visit our FCM Dashboard.

Customer Funds in Listed Derivatives

 

Customer Funds held by the FCM community saw a modest quarterly increase of 1.54% or just over $4.5 billion, in Q2 2021. This was in line with the increase from Q4 2020 to Q1 2021. These balances are still below the March 2020 high of just over $318 billion and currently sit at just over $300 billion. There were 63 FCMs Registered with the CFTC as of Q2 2021. Twelve of the 63 FCMs are dormant or reported zero Seg or 30.7 Customer Funds. The average Customer Funds held by the 51 FCMs, reporting Customer Funds, was $5.875 billion, and JP Morgan still maintains the top spot, with just over $53.5 billion, up from $50.5 billion in Q1 2021. There were no new FCMs registered in Q2 2021. One firm did change its name; York Business Associates is now doing business as NinjaTrader.

Top 20 FCMs by Customer Funds in Listed Derivatives | June 2021

The Top 10 FCMs witnessed very little movement, as the Top 8 spots remained the same. Mizuho jumped two spots from 11th to 9th and broke into the Top 10. Mizuho jumped ahead of UBS and pushed Interactive Brokers into the 11th spot. Not surprisingly, Mizuho gained the largest percentage of Customer Funds at 14.09%, while JP Morgan saw the largest dollar increase of just under $3.0 billion. Credit Suisse, once again saw the largest percentage decrease of 19.49% and the largest dollar reduction of just over $2.25 billion. The Top 10 FCMs still account for over 78% of the total Customer Funds held by FCMs, with an average of just under $23.4 billion. In total, this group was responsible for just over $1.7 billion of the $4.5 billion increase in Customer Funds quarter over quarter, which accounts for 38% of the overall increase.In contrast, the bottom half of the Top 20 saw quite a bit of movement again. Macquarie jumped three spots from 20th to 17th. While ABN Amro and RBC both slipped two spots to 18th and 20th, respectively. StoneX Financial Inc jumped one spot to 16th and gained the largest percentage of Customer Funds at 16.68%, while RJ O’Brien Associates saw the largest dollar increase of just over $686 million. ABN Amro saw the largest percentage decrease of 8.41% and the largest dollar reduction of just over $315 million. The 11th to 20th ranked FCMs account for over 16% of the total Customer Funds held by FCMs, with an average of just over $4.65 billion. In total, this group gained just over $2.1 billion of the $4.5 billion in Customer Funds quarter over quarter, which accounts for 47% of the overall increase. This is rather impressive and could be an indicator that these firms have a larger appetite for new business than the Top 10 FCMs.

Market Shares of Top 20 FCMs in Listed Derivatives | June 2021

With the Top 20 FCMs controlling 94% of all Customer Funds, the 21st through 63rd ranked FCMs hold approximately 6%, with an average of just over $450 million. The remaining $700 million in growth came from the 21st – 63rd ranked FCMs and can be mostly attributed to Marex, which alone increased Customer Funds by over $755 million. Without the growth at Marex, this group would have had a net loss of Customer Funds, quarter over quarter. Marex is currently ranked as the 21st FCM, up two spots since last quarter and behind the 20th ranked FCM (RBC), by $236 million.

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