Eligible Contract Participant (ECP)
An Eligible Contract Participant (ECP) is an entity or individual that meets specific financial thresholds under the Commodity Exchange Act, allowing it to enter into certain OTC derivatives contracts.Common ECP categories
- Financial institutions: banks, trust companies, and broker-dealers regulated by U.S. or foreign governments.
- Insurance and investment companies: regulated entities acting for their own account.
- Corporations and partnerships: entities with total assets exceeding $10M, or a net worth over $1M if hedging commercial risk.
- Commodity pools: entities with more than $5M in assets under management.
- Government entities and employee benefit plans: plans with assets exceeding $5M.
Verification thresholds
- Entities (corporations, funds, LLCs, partnerships): $10M or more in total assets.
- Individuals: $10M or more in investments, or $5M or more if trading for risk management purposes.
Acceptable ECP evidence
Acceptable evidence depends on your ECP category. Upload one document that matches your category.Trading authorization
We also need a document that expressly authorizes derivatives trading and identifies the individuals authorized to trade. Acceptable documents depend on your organization’s structure. Upload one document that matches your entity type.Firm Trading Authorization form
Complete and sign this form only if your organization has no governing document that expressly authorizes derivatives trading and names the individuals authorized to trade. If such a document exists, upload it instead.Firm Trading Authorization form
Word document. Download the template.