What regulations govern the trading of derivatives?

In Washington, alternative investment law regulates the trading of derivatives. Derivatives are financial products based on the value of other assets such as stocks, bonds, currencies, commodities, and real estate. They are used to speculate on future changes in the value of those assets. The primary regulation governing the trading of derivatives in Washington is the Washington Uniform Securities Act. This law creates registration requirements for firms trading in derivatives, and ensures that the trading process is fair and transparent. It also sets out the disclosure requirements that firms must adhere to when offering derivatives. The Washington Department of Financial Institutions also regulates the trading of derivatives. It sets the standards for the safety and soundness of derivative transactions, as well as providing guidance on the care that financial institutions should take during the trading process. Another regulation governing derivatives is the Commodity Futures Trading Commission (CFTC). The CFTC develops regulations to prevent excessive speculation and manipulation in derivatives markets. It also establishes accounting, recordkeeping, and other requirements to ensure the integrity of the derivatives market. Finally, the Washington State Investment Board has authority over institutional investors who deal in derivatives. They set standards for the disclosure of information related to derivatives transactions, as well as ensure that the investments are managed in an appropriate and responsible manner.

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What regulations govern the trading of derivatives?

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