City, foremost in commerce, one holding record (7)
I believe the answer is:
cologne
'city' is the definition.
(Cologne is an example)
'foremost in commerce one holding record' is the wordplay.
'foremost in' suggests taking the first letters.
'holding' means one lot of letters goes inside another.
'record' becomes 'log' (logging is a kind of recording).
The initial letter of 'commerce' is 'c'.
'one' placed around 'log' is 'ologne'.
'c'+'ologne'='COLOGNE'
(Other definitions for cologne that I've seen before include "Eau de _____" , "European city" , "Refreshing scent" , "Scent - German city" , "Scented toilet water" .)