What regulations govern the trading of commodities and futures?

In California, alternative investments such as commodities and futures are regulated by the Commodity Exchange Act (CEA). The CEA is part of the federal government’s oversight of the exchanges and futures markets, and is enforced by the US Commodity Futures Trading Commission (CFTC). The CEA protects investors from fraudulent and manipulative trading practices by explicitly prohibiting the use of any manipulative or deceptive device or contrivance in the trading of any commodity in interstate commerce. The CEA also ensures transparency and fair play in the markets by requiring the exchanges to provide daily reports on trading activity, and to make prices available to the public. The CFTC also monitors the market to ensure that there are no fraudulent activities taking place such as insider trading and market manipulation. In addition, the CFTC conducts periodic audits of the exchanges to ensure compliance with the CEA. Finally, the CEA requires all participants in the futures markets to register with the CFTC, including traders, broker-dealers, and brokers. All registered firms must adhere to the financial requirements established by the CFTC, and must adhere to the terms of their customer agreements. This ensures that the integrity of the markets is preserved and that the interests of the parties involved in the exchanges are protected.

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What regulations govern the trading of commodities and futures?

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