Commodity Exchanges and Regulation
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Excerpt
The U.S. Commodity Futures Trading Commission (CFTC) intensively regulates commodity futures, options, and swaps pursuant to the provisions of the Commodity Exchange Act of 1936. The Securities and Exchange Commission (SEC) and federal banking agencies also have some jurisdiction over derivative financial instruments. This chapter describes the CFTC regulations, including registration requirements for designated contract markets, clearinghouses, and various swap market participants. It also describes the financial responsibility requirements imposed on futures commission merchants and safeguards for customer funds in the futures markets. Additionally, the chapter addresses prohibitions against misleading sales activities, deceptive trading practices, and price manipulations. Finally, it reviews the role of the SEC and bank regulators in regulating financial derivative contracts, particularly securities derivatives and foreign currency exchange transactions.
ISBN
9780190656010
Publication Date
2018
Publisher
Oxford Scholarship Online
Keywords
Commodity Futures Trading Commission, Commodity Exchange Act of 1936, derivatives-clearing organizations, futures commission merchant, swaps, foreign currency exchange
Disciplines
Economics | Finance
Recommended Citation
Jerry W. Markham, Commodity Exchanges and Regulation, in COMMODITIES: MARKETS, PERFORMANCE, AND STRATEGIES 37, 55 (H. Kent Baker, Greg Filbeck, & Jeffrey H. Harris, eds., Oxford University Press, Oxford Scholarship Online 2018).
DOI:10.1093/oso/9780190656010.003.0003
