What are the regulations governing the trading of futures contracts?

In New Hampshire, the trading of futures contracts is regulated by both Federal law and the rules of the Commodity Futures Trading Commission (CFTC). Futures contracts are agreements to buy or sell a certain commodity or financial instrument at a price established at the time the contract is made. The contract will mature at a particular date in the future, typically the following month, when the trading of futures contracts is closed. Under Federal law, all futures contracts must be traded on a regulated exchange, such as the Chicago Mercantile Exchange or the New York Mercantile Exchange. The exchanges must be registered with the CFTC, which is responsible for regulating and supervising their activities. The CFTC also sets margin requirements that traders must meet when entering into a futures contract. Margins are required to cover the potential losses that could occur if the price of the underlying security or commodity moves against the position held by the trader. In addition, the CFTC imposes limits on a trader’s ability to speculate and establishes specific procedures for entering into a futures contract. These rules must be followed by all participants in the futures market. Finally, the CFTC has implemented a system of surveillance to ensure that all participants are following the rules and that the markets remain fair and orderly. This includes monitoring for cases of manipulation, insider trading, and other abusive practices.

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What are the regulations governing the trading of futures contracts?

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