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
In 2021, Customer Funds held by the FCM community saw a healthy annual increase of 11.78%, or just over $34 billion. At the end of 2021, FCMs held just over $324.5 billion in Customer Funds, which surpassed the March 2020 high of just over $318 billion. There were sixty-two FCMs registered with the CFTC at the end of 2021, compared to sixty-five at the end of 2020, further indicating a consolidation of the FCM community. Although we are seeing new applications being submitted for Digital Asset FCMs, which could reverse this trend over the next year or so. Fifteen of the sixty-two FCMs reported holding no required segregated balances for customers. The remaining forty-seven FCMs’ average Customer Funds balances increased to $6.90 billion at the end of 2021, compared to $5.69 billion at the end of 2020. JP Morgan still maintains the top spot, with just over $58.6 billion, up from $53.2 billion. There were no new FCMs registered in 2021 and four FCMs; BOCI Commodities & Futures USA LLC, Daiwa Capital Markets America INC, HUATAI Financial USA INC & Rand Financial Services INC, have closed their FCMs. Two firms had name changes; TD Ameritrade Futures & Forex LLC is now doing business as Charles Schwab Futures & Forex LLC. & York Business Associates LLC is now doing business as NinjaTrader Clearing LLC.
Top 20 FCMs by Customer Funds in Listed Derivatives | December 2021
Focusing on the Top 10 FCMs, the top four FCM’s did not change, year over year. J.P. Morgan (up 10.26%), Goldman Sachs (up 1.89%), Morgan Stanley (down 2.74%) and BofA (up 3.19%), held the top four spots. Mizuho had the biggest percentage gain up a whopping 88.79% and they jumped four spots in the ranking from 11th to 7th. Citigroup (up 47.29%) and SG (up 15.45%) swapped positions, Citibank moved up to 5th and SG fell to 6th. ADM (up 32.53%) jumped into the Top 10, they were previously ranked 12th. Citigroup saw the largest overall dollar increase of just over $8 billion. Morgan Stanley was the only FCM in the top ten whose funds decreased (down $902 million/2.74%). The Top 10 FCMs still hold over 77% of the total Customer Funds by all FCMs, with an average of just over $25 billion, up from $22.4 billion in 2020. In total, this group was responsible for nearly $27 billion of the $34 billion increase, which accounts for almost 79% of the total increase from 2020 to 2021. In total, this group’s Customer Funds increased by an average of 12.02%.
The bottom half of the Top 20 saw quite a bit of movement again, with seven of the ten firms changing positions. UBS and Credit Suisse dropped out of the Top 10 to 11th (down two spots) and 12th (down five spots) respectively. UBS saw a modest increase of 1.75% while Credit Suisse continues to wind down its operations and posted a reduction of 49.5%. BNP (up 64%) jumped from 16th to 15th while StoneX (up 51%) jumped from 18th to 16th. Macquarie (up 46.5%) and Marex (up 74%) both jumped into the Top 20 and rank 18th and 19th respectively. BNP had the largest overall dollar increase at just over $2.3 billion, and Marex had the highest overall percentage gain of 74%. Except for Credit Suisse, all the other firms in this segment increased their Customer Funds year over year. UBS saw the smallest dollar increase of just over $128 million and had the smallest percentage increase of 1.75%. The bottom half of the Top 20 holds over 16% of the total Customer Funds by all FCMs, with an average of just over $5.19 billion. In total, this group was responsible for just over $4.85 billion of the $34 billion increase, which accounts for 14% of the overall increase from 2020 to 2021. In total, this group’s Customer Funds increased by an average of 10.3%.
Market Shares of Top 20 FCMs in Listed Derivatives | December 2021
While the Top 20 FCMs control 93.3% of all Customer Funds, the 21st – 30th FCMs hold approximately 5.8%, with an average of just over $1.89 billion. The remaining seventeen FCMs hold less than 1%, with an average of just over $158 million. Of the remaining twenty-seven FCMs, Wedbush saw the largest overall dollar increase of just over $1.15 billion and NinjaTrader saw the largest percentage gain of 402.95%. Wedbush saw the largest overall dollar decrease of just over $1.15 billion, while Gain Capital funds dropped 100%, which makes sense, with the StoneX acquisition. Two FCMs dropped out of the Top 20, as ABN dropped three spots from 18th to 21st and HSBC fell seven spots from 15th to 22nd. In total, this group’s Customer Funds increased by an average of 7%.
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