eligible contract participant

Definition of "eligible contract participant"
  1. An entity recognized by the Commodity Exchange Act, because of its regulated status or assets, that can partake in transactions not usually open to retail customers, such as trading on a derivatives transaction execution facility
How to use "eligible contract participant" in a sentence
  1. The insurance company became an eligible contract participant after meeting the regulated status requirements.
  2. As an eligible contract participant, the commodity pool could engage in certain restricted transactions.
  3. Despite having substantial assets, the company could not become an eligible contract participant due to stringent regulations.

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