Eligible Contract Participant

This Issue in United States

Concept of Eligible Contract Participant in Futures Trading

In this context of financial law, the following is a definition of Eligible Contract Participant: An entity, such as a financial institution, an insurance company, or commodity pool, that is classified by the Commodity Exchange Act as an eligible contract participant based upon its regulated status or the amount it invests on a discretionary basis. This classification permits these persons to engage in specific transactions (such as trading on a swap execution facility or entering into a bilateral swap trade) not directly available to non-eligible contract participants, i.e., retail customers. See 7 USC 1a(18).