What regulations govern the trading of options and futures?

In Minnesota, the trading of options and futures is largely regulated by the Minnesota Uniform Securities Act and its associated rules. The Act establishes the minimum requirements for the registration, sale, and offering of securities and other investments in the state. Minnesota also has the Alternative Investment Law, which gives the Commissioner of Commerce the authority to make exemptions from the Minnesota Uniform Securities Act for certain investments, including options and futures, which are traditionally traded over-the-counter (OTC). The Minnesota Securities Act requires all professionals involved in the buying and selling of options and futures to be licensed, registered, or certified according to the regulations set forth in the Act. This includes broker-dealers, investment advisors, and other financial professionals. Additionally, the Minnesota Commerce Department has established certain rules, guidelines, and disclosure requirements for the trading of these investment products. Most notably, the trading of options and futures must be conducted in a manner that is designed to prevent fraud and abuse. To ensure compliance with the Minnesota Securities Act, the Commissioner of Commerce also requires all persons who are involved in the trading of options and futures to be members of a state-registered self-regulatory organization that provides additional oversight of trading practices. Lastly, all trades of options and futures must be reported to the state Division of Securities within five days of execution, and any promotional materials must be filed with the Division prior to distribution. By adhering to these regulations, investors can be assured that they are protected from fraud and abuse when trading options and futures in Minnesota.

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What regulations govern the trading of options and futures?

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