Gross Collection of Exchange-Set Margins for Omnibus Accounts

Commission Regulation 1.58 requires that future commission merchants (“FCMs”) margin omnibus accounts on a gross, rather than a net, basis. The regulation provides that the carrying FCM need not collect margin for positions traded by a person through an omnibus account in excess of the amount that would be required if the same person, instead of trading through an omnibus account, maintained its own account with the carrying FCM. To prevent abuse of this exception to the regulation, a carrying FCM must maintain a written representation from the originating FCM or foreign broker that the particular positions held in the omnibus account are part of a hedge or spread transaction. This collection of information is necessary in order to provide documentation that can be inspected with regard to questions of proper compliance with gross margining requirements.

The latest form for Gross Collection of Exchange-Set Margins for Omnibus Accounts expires 2027-03-31 and can be found here.