Designated contract market and Designated investment firm: Difference between pages

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imported>John Grout
(To create the entry)
 
imported>Doug Williamson
(Create the page. Source: Bank of England webpage http://www.bankofengland.co.uk/pra/Pages/authorisations/designatedfirmslist.aspx)
 
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US
''Bank regulation and supervision.''


Designated contract market (DCMs) are defined in Section 5 of the Commodity Exchange Act (CEA), as "boards of trade (or exchanges) that operate under the regulatory oversight of the CFTC". DCMs are most like traditional futures exchanges, which may allow access to their facilities by all types of traders, including retail customers. They may list for trading futures or option contracts based on any underlying commodity, index or instrument.  
In the UK, the Prudential Regulation Authority (PRA) defines a designated investment firm as one which:
*Has, or has applied for, permission to deal in investments as principal; and
*Meets minimum amount capital requirements; and
*Qualifies under the PRA’s designation criteria.




Under the [[Dodd-Frank]] legislation, DCMs are one of two types of "exchange" on which [[mandatory cleared swaps]] may be traded. The other type of exchange is a [[swap execution facility]] (SEF). The intention of the legislation is to move what were bilateral derivative contracts on to the two types of exchange that enable participants to execute or to trade swaps with other market participants - so called "many to many" functionality.
== See also ==
* [[Broker]]
* [[Broker-dealer]]
* [[Dealer]]
* [[Investment bank]]
* [[Price discovery]]
* [[Principal]]
* [[Proprietary trading]]
* [[Prudential Regulation Authority]]


Unlike SEFs, DCMs may trade with persons/legal entities with a net worth of less than USD 10 m.
 
The term 'designated investment firm' is sometimes used interchangeably with 'broker-dealer'.
 
 
====External link====
 
[http://www.bankofengland.co.uk/pra/Pages/authorisations/designatedfirmslist.aspx PRA designated firms list]

Revision as of 08:17, 8 August 2016

Bank regulation and supervision.

In the UK, the Prudential Regulation Authority (PRA) defines a designated investment firm as one which:

  • Has, or has applied for, permission to deal in investments as principal; and
  • Meets minimum amount capital requirements; and
  • Qualifies under the PRA’s designation criteria.


See also


The term 'designated investment firm' is sometimes used interchangeably with 'broker-dealer'.


External link

PRA designated firms list

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