FAQs

FREQUENTLY ASKED QUESTIONS

WHEN WILL TRADING COMMENCE?
FutureCom has no way of determining the date when trading can begin. Our application is being processed by the Commodities Futures Exchange Commission and we will start trading once we have received approval. CFTC has assured us that they will process our application with due dispatch.

HOW DO YOU APPLY FOR A MEMBERSHIP IN THE EXCHANGE?
Once trading is approved we will provide for an online application. We will be posting additional information on memberships on this site in the near future.

DO YOU HAVE TO BE A MEMBER TO TRADE ON THE EXCHANGE?
Yes. All Members will also be clearing members of the Exchange. There will be different levels of membership depending on credit issues. Some members may choose to work through a FCM but they will still maintain member status.

WHO OWNS FUTURECOM?
FutureCom is a Texas Limited Partnership. It is one of several companies operating under The Texas Beef Group -- several companies involved in grain and cattle production. W.H. O'Brien is the manager of all of the companies.

HOW SECURE IS TRADING ON FUTURECOM?
Traders will be logging on to secure servers using user ID, passwords and customer account numbers. Additionally, each computer used by a member to enter trades will be required to be certified with the Exchange. FutureCom will also utilize other common security features used by other online trading sites that will assure the users of protected access.

HOW WILL I VIEW THE CURRENT BIDS AND OFFERS THAT ARE AVAILABLE FOR TRADING?
FutureCom will offer a view of the current "Best 5" bids to buy and offers to sell on each contract month. This view will be available as you enter your order by selecting the targeted month. In addition a free quote screen will offer traders a view of the open, high, low, last and change in each contract and contract month.

WHAT HAPPENS IF I MAKE A MISTAKE ENTERING MY ORDER?
We realize that traders may make a mistake entering their order. To prevent or minimize the errors, we present you with a second screen, after you have entered your order, that will display the results of the order entry. You will see the order including all the specifications, margin required, before you are asked to confirm the information for final execution.

HOW ARE MARGIN CALLS HANDLED?
All communicationswith the Exchange will be handled through encrypted e mail. This will include margin calls that will specify the amount due and the time the amount is due. Traders may allow the Exchange to handle the transaction or they may handle the transfer themselves. Should a margin requirement fail to be delivered to the Exchange on time, the position will be automatically liquidated.

WHAT ARE THE RULES OF THE EXCHANGE?
The FutureCom rulebook will be posted on public folders of the Exchange and available to any member or qualified trader.

WHAT HAPPENS IF THE INTERNET GOES DOWN OR MY INTERNET PROVIDER CAN NOT BE ACCESSED?
While parts of the internet have been disabled in the past, the internet is a fairly stable communication mode. Certain extraordinary events may caused disruptions to the Exchange but the Internet should be as reliable as our phone system. If your Internet provider can not provide you access, for whatever reason, the Exchange can not be responsible. Regular traders will want to arrange alternative access options.

HOW SECURE IS MY MARGIN MONEY?
Traders comfort level with the security of their money on deposit with the Exchange is fundamental to our success. FutureCom will keep margin accounts with the clearinghouse bank in a custodial account. There will be a minimum margin requirement maintained every day based upon trading in the designated contract. Trader defaults will be met by the Exchange using draw down letters of credit up to $8 million dollars per contract depending on open interest in the contract. The Exchange may supplement this protection with a re-insurance product.