OptionsHouse Forms FCM, Tapping into US Futures Market

OptionsHouse, an online brokerage specializing in equities, has officially formed a non-clearing futures commission merchant (FCM), enhancing futures trading capabilities for its customer base, according to an OptionsHouse statement.

The new push will see OptionsHouse fortify an existing futures offering, whereby extending the latitude of its product suite to clients as an FCM. OptionsHouse will launch the FCM by Q2 2016, pending requisite regulatory approvals.

The main impetus behind the FCM was the streamlining of futures trading capabilities, including several benefits and functionalities for customers. These include mitigated account creation times, additional cash management, and trading strategies, among others. The decision to launch an FCM comes at an interesting time when many others in the industry are exiting the business in the US, given the increased regulatory atmosphere.

In addition, existing and new OptionsHouse clients will also gain access to a host of US exchanges under the CME Group and Intercontinental Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term mantle, along with the VIX futures and other products listed at the CBOE Futures Exchange. Collectively, this includes some of the largest exchange venues in the world for futures trading.

According to Joe Corso, OptionHouse’s Senior Vice President (SVP) of Brokerage, in a recent statement on the FCM launch: “While others are exiting the FCM business, we decided to step up to ensure an outstanding Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term class trading experience for our customers and further establish ourselves as a leader in terms of value in the online brokerage industry.”

“We recognize how important futures are to many of our traders, as they are often used in conjunction with options and stock trading strategies. For those customers that are seeking additional education and support, we will have a full-service futures desk coupled with trading webinars to supplement the platform’s embedded education,” added Daniel Ryba, OptionsHouse VP of Futures in an accompanying statement.