What does Eligible Contract Participant mean?
An entity that meets the criteria laid down by the Commodity Exchange Act (CEA) and is allowed to do specific transactions that are not directly available to retail customers. The examples of such transactions are trading on a swap execution facility or entering into a bilateral swap trade.
Futures Knowledge Explains Eligible Contract Participant
A financial institution, an insurance company, commodity pool or other entity can be classified as an eligible contract participant by the Commodity Exchange Act. This however depends on their regulated status or the amount they invests on a discretionary basis. An eligible contract participant has with more choices of investment, futures and options.