Omnibus Account

What is Omnibus Account?

Omnibus Account meaning An account carried by one futures commission merchant, the carrying FCM, for another FCM, the originating FCM, in which the transactions of two or more persons, who are customers of the originating FCM, are combined and carried by the carrying FCM. Omnibus account titles must clearly show that the funds and trades therein belong to customers of the originating FCM. An originating broker must use an omnibus account to execute or clear trades for customers at a particular exchange where it does not have trading or clearing privileges.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary