Futures and Securities Markets

Federal and industry regulators carry out the regulation of futures markets in the United States under the Commodity Exchange Act ("CEA"). In general, states do not have authority to regulate futures markets. The fundamental aims of futures market regulation resemble those of securities regulation: to help protect market users and the public from fraud and manipulation and to ensure fair and orderly markets.

Although undefined in statute, a "future" or "futures contract" generally refers to a highly standardized agreement between two parties to buy and sell a specific asset at a specified price before or upon some set future date. The first futures contracts focused on agricultural commodities. Today, futures contracts involve a vast array of assets, including agricultural products (except onions), financial instruments and indexes, energy products, and metals.

Introduction

BACKGROUND – FUTURES REGULATION BEFORE THE COMMODITY EXCHANGE ACT

The Commodity Exchange Act and the Commodity Futures Trading Commission

Origin and Early Developments

The Commodity Futures Modernization Act of 20004

The Commodity Futures Trading Commission

Regulated Entities – Markets, Clearing Organizations, Intermediaries, SROs

Markets

Clearing Organizations

INtermediaries

Self-Regulatory Organizations

SECURITIES REGULATION AND HISTORY

Introduction

Blue Sky Laws—Securities Regulation by the States

Background—Fifty State Securities Regulators

Three Basic Elements of State Securities Laws: Registration of Securities, Registration of Securities Professionals, and Enforcement

The Need for Coordination and Uniformity

Federal Intervention

Federal Securities Laws and the Securities and Exchange Commission

Overview of the Federal Securities Laws

Securities Act of 1933

Securities Exchange Act of 1934

Investment Company Act of 1940

Investment Advisers Act of 1940

Sarbanes-Oxley Act of 2002

Other Federal Securities Laws

The Securities and Exchange Commission

Regulated Entities – Markets & Clearing, Broker-Dealers, SROs, and Others

Markets and Clearing

Brokers-Dealers and Other Intermediaries

Self-Regulatory Organizations

Other Entities