FIA Data Shows Decline in FCMs Holding Future and Swap Accounts
Commentary by Steven Lofchie
The FIA released its December 2023 data on customer funds held at US FCMs.
FIA stated that the number of FCMs holding customer funds in futures accounts "was recorded at 45 in December, down from 47 a year ago and down from 54 five years ago."
According to December 2023 snapshot, the FIA data showed 13 FCMs holding customer funds in cleared swaps, down from 17 five years ago and 22 ten years ago. FIA found that "customer funds held in cleared swaps accounts at US FCMs reached $162 billion in the month of December, the highest level ever recorded."
Commentary
The continuing decrease in the number of firms providing clearing services may be a point of concern in light of the SEC's recently adopted mandate for the clearing of certain repos and cash trades in U.S. government securities. It seems likely that the number of firms willing to provide clearing services in repos may be less than the number of firms willing to enter bilateral transactions in repos.