Retail Forex Transactions: A Regulatory Guide
Thursday, November 1st, 2007The Commodity Exchange Act (Act) gives the Commodity Futures Trading
Commission (CFTC) limited anti-fraud and anti-manipulation jurisdiction over off-
exchange (also called over-the-counter or OTC) foreign currency futures and options
transactions offered to or entered into with retail customers. Under the Act, only
certain regulated entities may be counterparties to these off-exchange trades with
retail customers. These regulated entities include registered futures commission
merchants (FCMs) and certain of their affiliates. All other off-exchange futures and
options transactions with U.S. retail customers are unlawful unless done on or
subject to the rules of a regulated exchange.
Before going on, you should understand two of the terms that we will use throughout
this Guide.
Popularity: 3% [?]
