What regulations govern the trading of derivatives?

In New York, derivatives are regulated by various government entities such as the US Commodity Futures Trading Commission (CFTC), the New York State Department of Financial Services (NYDFS), and the Securities and Exchange Commission (SEC). The CFTC is responsible for regulating the trading of commodity futures, options, and swaps, while the NYDFS and SEC are responsible for regulating the trading of securities-based derivatives such as listed options. In order to trade derivatives, a person must be registered with the CFTC or NYDFS, depending on which type of derivative is being traded. All derivatives trading done on a recognized exchanges must comply with any applicable laws and regulations. Additionally, firms that carry out derivatives transactions must follow the rules of the relevant exchange, as well as the CFTC’s and SEC’s regulations. In order to help protect investors, the NYDFS has created a set of rules governing derivative instruments such as swaps. These rules specify minimum capital requirements, trading limits, and disclosure and reporting requirements. Additionally, the CFTC has adopted a set of rules, known as the Commodity Exchange Act, to protect customers from fraudulent and abusive practices in the derivatives market. In conclusion, the trading of derivatives in New York is heavily regulated by a number of government entities, including the CFTC, NYDFS, and SEC. These entities have established specific regulations to ensure the fair and secure trading of derivatives, as well as the protection of investors.

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What regulations govern the trading of derivatives?

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