52316 - Commodity Contracts Intermediation
Navigating the complex world of commodity markets requires specialized services. NAICS code 52316 - Commodity Contracts Intermediation identifies businesses acting as essential intermediaries in the buying and selling of commodity contracts. If you’re involved in government contracting, finance, or commodity trading, understanding this code is vital for compliance, eligibility, and market insight.
What is NAICS Code 52316?
NAICS code 52316 pertains to Commodity Contracts Intermediation—a niche but critical function within the finance and insurance sector. This code covers firms that facilitate transactions between buyers and sellers of commodity contracts, including futures and options on commodities. These intermediaries are the backbone of commodity markets, ensuring liquidity, transparency, and efficient price discovery.
Key Aspects of Commodity Contracts Intermediation:
- Acting as brokers or intermediaries in commodity markets
- Handling futures and options contracts on commodities
- Facilitating transactions between producers, consumers, investors, and traders
Sector: Finance and Insurance
Commodity Contracts Intermediation falls under the broader sector of Finance and Insurance, which encompasses a variety of financial service providers. This sector is integral to economic stability, capital flow, and risk management.
Typical Business Activities Include:
- Commodity Brokers: Professionals who execute commodity trades on behalf of clients.
- Futures Commission Merchants (FCMs): Firms that solicit or accept orders for commodity futures contracts and options and accept money or assets from customers to support such orders.
- Commodity Trading Advisors (CTAs): Individuals or firms providing advice and trading guidance on commodity futures and options trading.
Size Standards for NAICS 52316
To qualify under NAICS 52316 for government contracting or small business programs, businesses must adhere to size standards based on annual receipts.
- Small Business Size Standard: $38.5 million in average annual receipts (may vary, verify with SBA guidelines)
- Meets eligibility criteria for small business contracting assistance if revenue is below this threshold.
Code Details Table
| Attribute | Details |
|---|---|
| NAICS Code | 52316 |
| Title | Commodity Contracts Intermediation |
| Sector | Finance and Insurance |
| Description | Intermediaries in buying and selling commodity contracts including futures and options |
| Typical Businesses | Commodity brokers, Futures commission merchants, Commodity trading advisors |
| Size Standard | $38.5 million (average annual receipts) |
| Related NAICS Codes | 523110 (Investment Banking), 523120 (Securities Brokerage) |
Examples of Businesses Under NAICS 52316
- ABC Futures Brokerage LLC – Facilitates commodity futures contracts trading.
- Global Commodity Advisors Inc. – Provides trading advice and portfolio management on commodity futures.
- Midwest Futures Merchants – Acts as a futures commission merchant for agricultural commodity contracts.
Frequently Asked Questions (FAQ)
What types of contracts are covered under NAICS 52316?
This code includes commodity contracts such as futures, options on commodities, and other derivative contracts on physical commodities.
Does NAICS 52316 include firms trading securities or stocks?
No, this code specifically focuses on commodity contracts intermediation. Securities and stock brokerage fall under different NAICS codes like 523110 or 523120.
How can a company verify if it qualifies as a small business under this NAICS code?
Businesses should check their average annual receipts against SBA size standards, currently set at $38.5 million for NAICS 52316. SBA size standards may be updated, so always confirm with the latest data.
Are Commodity Trading Advisors regulated differently?
Yes, CTAs must register with the Commodity Futures Trading Commission (CFTC) and conform to specific regulatory requirements apart from general NAICS classification.
Conclusion
NAICS code 52316 - Commodity Contracts Intermediation plays a crucial role in the trading ecosystem by bridging buyers and sellers of commodity contracts. Whether you’re a commodity broker, futures commission merchant, or trading advisor, understanding this classification helps streamline compliance and enhances opportunities within the finance and insurance industry.
For businesses involved in commodity contracts, leveraging the precise characterization of NAICS 52316 paves the way for better market access, government contracting opportunities, and targeted industry insights.
Keywords: NAICS 52316, Commodity Contracts Intermediation, Commodity brokers, Futures commission merchants, Commodity trading advisors, Finance and Insurance sector, Small business size standards, Commodity futures, Government contracting
