The business model for Futures Commission Merchants (FCMs) is undergoing radical change. Cost pressures, regulatory burdens, fragmenting liquidity, and evolving client demands are posing major challenges.
To explore these issues, FOW Magazine and Object Trading brought together a group of senior executives from buy-sides, sell-sides, and an exchange, for an unusually candid discussion. Several important topics emerged, including:
- How some FCMs are giving clients better transparency into fee structures
- The delicate balance between competitive advantage and complexity
- The need to provide capital efficiencies across increasingly fragmented venues
- Buy-side empowerment, direct exchange relationships, and FCM adaptation
- How risk controls offered by exchanges vs. FCMs benefit buy-sides differently
Whilst all of these themes are interlinked, each one poses a unique challenge. Taken together, they highlight a new business model for FCMs. Click below or on the image to download the whitepaper written by FOW Magazine, which offers a deeper dive into these issues.