Definition

An Eligible Contract Participant (ECP) is a regulatory classification under U.S. law that determines whether an individual or entity qualifies to participate in certain derivatives or leveraged trading activities.

Qualification is generally based on financial thresholds such as net worth, assets under management, or institutional status.

Example in Context

A trading platform may require U.S.-based clients to qualify as Eligible Contract Participants before accessing certain leveraged derivatives products.

FAQs

How does someone qualify as an ECP?

Qualification is typically based on meeting financial thresholds defined by U.S. regulatory standards.

Why is ECP status required?

Certain derivatives products are restricted to ECPs under U.S. regulations.

Is ECP status permanent?

Eligibility depends on meeting qualification criteria at the time of participation.

Related Terms