A fully disclosed carrying agreement, or FDCA, is an agreement between two parties in which one party, typically a broker-dealer, agrees to carry or hold securities on behalf of the other party, typically a customer or client. The FDCA is a common agreement in the securities industry and is subject to regulation by the Securities and Exchange Commission (SEC).

The purpose of the FDCA is to establish a relationship between the broker-dealer and the customer that allows the broker-dealer to hold and trade securities on behalf of the customer. The agreement outlines the terms and conditions of the arrangement, including the fees and charges associated with the holding and trading of securities.

One of the key features of the FDCA is that it requires full disclosure of all fees and charges associated with the holding and trading of securities. This includes fees charged by the broker-dealer for holding and managing the securities, as well as fees associated with trading the securities, such as commissions and other transaction fees.

The FDCA also requires that the broker-dealer provide the customer with regular statements that detail the holdings and activity in the account. This allows the customer to track the performance of their investments and to ensure that they are being managed in accordance with their investment objectives.

Another important aspect of the FDCA is the requirement for segregation of customer funds and securities. This means that the broker-dealer must keep customer funds and securities separate from their own, in order to protect customers in the event of a broker-dealer bankruptcy.

The FDCA is a valuable tool for customers who are looking to invest in securities through a broker-dealer. By requiring full disclosure, regular reporting, and segregation of funds and securities, the FDCA provides customers with the transparency and protection they need to make informed investment decisions.

In summary, the fully disclosed carrying agreement is an important agreement in the securities industry that establishes a relationship between a broker-dealer and a customer for the holding and trading of securities. By requiring full disclosure, regular reporting, and segregation of funds and securities, the FDCA provides customers with the transparency and protection they need to make informed investment decisions.