Since the introduction of financial futures at the Chicago Mercantile Exchange in 1972, the importance of futures (and hence a futures broker) in transferring financial risk has been proven by the explosive growth in the market. The vast array of CME interest rate products allows futures brokers and other professionals to manage interest rate risks ranging from one day to ten years.

Selecting A Futures Broker

Futures and options on futures contracts are bought and sold through brokerage firms, just like stocks. You may want to talk to several futures brokers before making your selection; you shouldn't enter the market until you feel comfortable with your choice. Your futures broker represents YOU - he or she will enter your order as you instruct and report the execution price back to you promptly. In addition, you may wish your broker to give you advice and help on various aspects of the market and to simply "be there" when you have questions.

All futures brokers in the U.S. must pass qualifying examinations and receive a license before they are permitted to handle customer orders. You can check on the registration status of your futures broker, or "associated person" by calling the National Futures Association at 312-781-1410.

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