Under this act, the cftc has authority to establish regulations that are published in title 17 of the code of. Commodity exchange act financial definition of commodity. Pursuant to section 5cc1 of the commodity exchange act. Commodity exchange act and related regulatory issues. The united republic of tanzania bill supplement no. On december 14, 2011, the commission issued an interpretation. Cftc and sec define swap dealer and major swap participant april 19, 2012.
Rules relating to suspension or disbarment from appearance and practice. The agency administers the commodity exchange act cea,3 which was passed in 1936. Proposed order and request for comment on a petition from certain independent system operators and regional transmission organizations to exempt specified transactions authorized by a tariff or protocol approved by the federal energy commission or the public utility commission of texas from certain provisions of the commodity exchange act. It is my reasonable belief that aforementioned applicant is classified as a ecp under category. The cea establishes the statutory framework under which the cftc operates. The commodity futures trading commission act of 1974 p. Prior to the cftcs creation, trading in agricultural commodities regulated by the cea was overseen by the commodity exchange administration, an office within the u. In re liborbased financial instruments antitrust litigation, 935 f. The commodity exchange act cea regulates the trading of commodity futures in the united states. Passed in 1936, it has been amended several times since then.
Commodity futures trading commission, the financial crimes enforcement network, and the u. The term alternative trading system means an organization, association, or group of persons that a is registered as a broker or dealer pursuant to section 15b of the securities exchange act of 1934. The working group has concluded that under many circumstances, the trading of. Securities exchange act of 1934 new york stock exchange.
Apr, 2015 over the past year, the sec and other regulatory agencies have initiated an increasing number of investigations into companies based on allegations of inadequate internal controls andor a system for reporting those controls. Overthecounter derivatives markets and the commodity. Cftc antifraud and manipulation enforcement authority july 14, 2011 unlawful to manipulate or attempt to manipulate the price of any swap or commodity. Eligible contract participantslike financial institutions, insurance companies, and. The cftc further clarifies enduser exception to the mandatory clearing requirement for swaps july 18, 2012 section 2h of the commodity exchange act the cea, as amended by the doddfrank wall street reform and consumer protection act. The act made extensive changes to the commodity exchange act cea of 1936, which itself amended the original grain futures act of 1922. Commodity futures trading commission cftc in august 2012 under section 4si of the commodity exchange act cea added by section 731 of the doddfrank act prescribing standards for swap dealers sds and major swap participants msps. May 02, 20 a borrower must be an eligible contract participant, as defined in section 1a18 of the commodity exchange act cea, in order to use an interest rate swap to hedge interest rate risk. Cftc regulations are found at title 17 chapter i of the code of federal regulations cfr and are. By way of comparison, section 10b of the securities exchange act makes it illegal to use or employ, in connection with the purchase or sale of any security registered on a national securities exchange or any. Commodity futures trading commission three lafayette.
Section 6ca of the act, 7la 2012, authorizes the commission to u. C does not i set rules governing the conduct of subscribers other than the conduct of such subscribers trading on the alternative trading system. Proposed rule note this proposed rule contains forms which are not displayed in the html version. Under this act, the cftc has authority to establish regulations. Commodity futures trading commission three lafayette centre 1155 21st street, nw washington, dc 20581 re. The commodity futures trading commission commission or cftc is adopting an amendment to the commissions regulations to expand the existing clearing requirement for interest rate swaps pursuant to the pertinent section of the commodity exchange act cea. Regulating credit default swaps in the wake of the subprime crisis, chapter 9 in. Section 14 limitations on relationships with a covered fund. Commodity futures trading commission 17 cfr part 1 contracts with embedded. Cftc antifraud and manipulation enforcement authority.
Requirements of secretary of the treasury regarding exemption of foreign exchange swaps and foreign exchange forwards from definition of the term swap. Transaction nal 1462 to phase in compliance with commodity exchange act cea section 2h8 the trade execution requirement by. Requests pursuant to section 4c of the commodity exchange. Federal register clearing requirement determination. Retail commodity transactions under commodity exchange act. The cftc further clarifies enduser exception to the. The following is a revised version of the commodity. For instance, section 3 of the cea is codified at 7 usc 5. D is exempt from the definition of the term exchange under such section 3a1 by rule or regulation of the securities and exchange commission on terms that. Through note above and below at the bottom of each page of the pdf. In addition, section 742a of the doddfrank act amends section 2c2 of. What is the commodity exchange act cea the commodity exchange act cea provides federal regulation of all futures trading activities.
A new relationship on march 6, 2019, the enforcement division of the u. Section 4df of the commodity exchange act mfa submits coalition followup letter to sec on cds portfolio margin concerns 12. A person who actively participates in the generation. Rules submission pursuant to section 5cc1 of the act and regulation 40. That this act may be cited as the commodity exchange act sec. Developments in commodities litigation 1981, 14 rev. Pursuant to section 801a2a of title 5, united states code, this is our report on a major rule promulgated by the commodity futures trading commission commission entitled clearing requirement determination under section 2h of the commodity exchange act for interest rate swaps rin. Eligible contract participant eligibility declaration. Pursuant to section 17j of the commodity exchange act cea, as amended, national futures association nfa hereby submits to the commodity futures trading commission cftc or commission the proposed amendments to nfa bylaw 1 regarding the schedule of dues and assessments. Since the cea sections do not always correspond numerically to the u. S72811 july 1, 2011 order pursuant to section 36 of the securities exchange act of 1934 granting temporary exemptions from clearing agency registration requirements under section 17ab of the. Commodity exchange act cea the federal statute regulating the us market for trading in commodity futures. The commodity exchange act cea is codified at 7 usc 1, et seq.
Pursuant to section 5cc1 of the commodity exchange act, as amended the act and. Glossaryeligible contract participant ecpan entity that is classified by the commodity exchange act cea based on its regulated status or amount of assets. Amends the commodity exchange act to apply to members and congressional employees, or to judicial officers or employees its prohibitions against certain transactions, involving the purchase or sale of any commodity in interstate commerce, or for future delivery, or any swap. Securities exchange act of 1934 securities lawyers deskbook.
Government that provides federal regulation of all futures trading activities. Sec reporting obligations under section and section 16 of. Rule f1 under the exchange act requires that a report on form f be filed with the sec by every institutional investment manager that exercises investment discretion 14 over one or more accounts holding equity securities that 1 are admitted for trading on a national securities exchange the section f securities, 15 and. Leaders of cftc, fincen, and sec issue joint statement on activities involving digital assets october 11, 2019 washington, dc the leaders of the u. The commodity futures trading commission cftc and the securities and exchange commission sec adopted highly anticipated final rules yesterday to further. The cftc administers the commodity exchange act cea. Our action today provides a temporary exemption, until the compliance date for the final rules relating to registration of clearing agencies that clear securitybased swaps pursuant to sections 17a i and j of the exchange act, from section 17a b1 of the exchange act to persons conducting exempted activities. It is designed to prevent and remove obstructions on the interstate commerce in commodities by regulating transactions on commodity futures exchanges. The term commodity pool is defined broadly under the commodity exchange act cea to include any investment trust, syndicate or similar form of enterprise operated for the purpose of trading in commodity interests, including any commodity for future delivery, securities futures product or swap, agreement in foreign currency. Sec reporting obligations under section and section 16. Section 14a securities litigation, investigations and. Gao found that 1 the final rule requires that interest rate swaps denominated in certain currencies and having certain termination dates be submitted for clearing to a derivatives clearing organization. According to the commission, this final rule was not promulgated under cea, but was promulgated exclusively under section of the bank holding company act of 1956 bhc act and cea section 15a is not applicable.
Commodity futures trading commission cftc or the commission issued an enforcement advisory applicable to nonregistered companies and individuals regarding its. The cftc further clarifies enduser exception to the mandatory clearing requirement for swaps july 18, 2012 section 2h of the commodity exchange act the cea, as amended by the doddfrank wall street reform and consumer protection act, grants the cftc authority to require that certain. Rules and regulations promulgated under the investment company act of 1940 17 cfr part 270. Requests pursuant to section 4c of the commodity exchange act to extend the exemption granted under part 35 of the commissions regulations to certain overthecounter swaps and to determine as eligible swap participants certain floor brokers and traders. The cea gives the cftc authority to regulate commodity pool operators cpos, commodity trading advisers ctas and commodities exchanges. The commodity exchange act outlines the qualifications for ecp eligibility in section 1a18 of the cea.
It was last amended by the public law listed in the as amended through note above and below at the bottom of each page of the pdf version and. Section 15 other limitations on permitted covered fund activities and investments. Sep 11, 2019 the commodity exchange act outlines the qualifications for ecp eligibility in section 1a18 of the cea. Pursuant to section 5cc1 of the commodity exchange act, as amended the act. Under rule d1, a reporting person also qualifies as a qualified institution if it is a bank as defined in section 3a6 of the exchange act, an insurance company as defined in section 3a19 of the exchange act, an investment company registered under the investment company act, or an employee benefit plan, savings association, or church plan. A practical guide to the eligible contract participant ecp. The following is a revised version of the commodity exchange act.
To see the complete proposal, download the pdf version. Pursuant to section 17j of the commodity exchange act, as amended, national futures association nfa hereby submits to the commodity futures trading commission cftc or commission the proposed amendments to nfa financial requirements section 14, the interpretive notice entitled forex transactions and the. An act to amend the commodity exchange act, as amended. Liability of controlling persons and persons who aid and abet violations. Commodity exchange act, also known as an act to amend the grain futures act to prevent and remove obstructions and burdens upon interstate commerce in grains and other commodities by regulating transactions therein on commodity futures exchanges, to limit or abolish short selling, to curb manipulation, and for other purposespublic law 74675, 74th congress, h. Sspencer on dsk4sptvn1prod with bills verdate sep 11 2014 00. A broker or dealer registered under section 15b1 of the securities exchange act of 1934, holding the client assets in customer accounts. Liability to contemporaneous traders for insider trading. Finally, the committee does not believe that the commission has, or has been authorized by congress to exercise, jurisdiction over individually.
It directs the cftc to issue a new rule defining the term. A futures commission merchant registered under section 4fa of the commodity exchange act, holding the client assets in customer accounts, but only with respect to clients funds and security. In its november 1999 report, overthecounter derivatives and the commodity exchange act, the presidents working group on financial markets pwg concluded that otc derivatives transactions should be subject to the cea only if necessary to achieve the public policy objectives of the act deterring market manipulation and protecting investors against fraud and other unfair practices. Section 22 of the commodity exchange act is congress at. Text of final volcker rule united states department of. In november of 2010, the commission issued a notice of proposed rulemaking to implement this new authority. Ecp classification permits these persons to engage in transactions such as trading on a. Section 4df of the commodity exchange act archives. The numbers in brackets refer to section numbers in title 7, united states code. Department of agriculture which was also formed in 1936.
On june 17,2011, the commodity futures trading commission cftc or the commission published for public comment in the federal register a proposed order that would grant, pursuant to the commissions exemptive authority pursuant to section 4 c of the commodity exchange act cea, certain temporary relief from the. Section 4b of the commodity exchange act, as amended fraud. Dodd frank wall street reform and customer protection act, pub. This publication is a compilation of the text of chapter 369 of the 67th congress. Excluded commodity has the same meaning as in section 1a19 of the commodity exchange act 7 u. An act to provide for the regulation of securities exchanges and of overthecounter markets operating in interstate and foreign commerce and through the mails, to prevent inequitable and unfair practices on such exchanges and markets, and for other purposes. Requirements of secretary of the treasury regarding exemption of foreign exchange swaps and foreign exchange forwards from definition of the term swap jurisdiction of commission. Code sections, we have provided a chart, which lists the sections of the cea and their corresponding sections in the united states code. Leaders of cftc, fincen, and sec issue joint statement on.