What does Eligible Commercial Entity (1) mean?
An eligible contract participant that also meets additional criteria laid down by Commodities Exchange Act.
Futures Knowledge Explains Eligible Commercial Entity (1)
The eligible commercial entity can be a dealer, risk manager, hedge manager or market maker or should have ability to make or take delivery of an underlying commodity of a contract and also has capacity to bear risks related to the commodity. Financial institutions and investment or insurance companies may become eligible commercial entities. An individual cannot be an eligible commercial entity.