Eligible Commercial Entity

This Issue in United States

Concept of Eligible Commercial Entity in Futures Trading

In this context of financial law, the following is a definition of Eligible Commercial Entity: An eligible contract participant or other entity approved by the CFTC that has a demonstrable ability to make or take delivery of an underlying commodity of a contract; incurs risks related to the commodity; or is a dealer that regularly provides risk management, hedging services, or market-making activities to entities trading commodities or derivative agreements, contracts, or transactions in commodities. See 7 USC 1a(17).