Eligible contract participant

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Eligible contract participant ("ECP") is a legal term used to describe certain persons active in the commodity and securities markets. ECP is the statutory minimum qualification for obtaining access to off-exchange products and services.

ECP is defined in the U.S. Commodity Exchange Act at section 1a(18). ECPs must, roughly speaking, have $10 million in invested assets unless the activity for which they need to qualify as ECPs is a hedging or other similar risk management activity, in which case they must have $5 million in invested assets. Additionally, many financial enterprises that are federally regulated are either automatically deemed to be ECPs or are subject to lower or modified minimum requirements.[1]

References

  1. 7 U.S. Code § 1a. Definitions. Legal Information Institute, Cornell Law School.