The Commodity Exchange Act - Essay Example

Any commodity contract offered or sold shall, in the absence of evidence to the contrary, be presumed to be offered or sold for speculation or investment purposes. A commodity contract shall not include any contract or agreement which requires, and under which the purchaser receives, within 28 calendar days from the payment in good funds of any portion of the purchase price, physical delivery of the total amount of each commodity to be purchased under the contract or agreement.[1985,c.643(new).

]" (Title 32: Professions and Occupations, Ch.111-A: Maine Commodity Code (Heading: PL 1987, c.402, Pt.A.@174 (rpr)) http://janus.state.me.us)2 The 106th Congress, 2nd Session H.R.5660 was held to reauthorize and amend the CEA to promote legal certainty, enhance competition, and to reduce the systemic risks prevailing in the markets for futures and the so-called over-the-counter derivatives, and others. This bill was called "The Commodity Futures Modernization Act of 2000" The Act was to:1. Reauthorize the appropriation for the Commodity Futures Trading Commission2.

Streamline and eliminate unnecessary regulation for the commodity futures exchanges and other entities regulated under the Commodity Exchange Act3. Transform the role of the Commodity Futures Trading Commission to oversight of the futures markets4. Provide a statutory and regulatory frame-work for allowing the trading of futures on securities5. Clarify the jurisdiction of the Commodity Futures Trading Commission over certain retail foreign exchange transactions and bucket shops that may not be otherwise regulated6.

Promote innovation for futures and derivatives and to reduce systemic risk by enhancing legal certainty in the markets for certain futures and derivatives transactions7. Reduce systemic risk and provide greater stability to markets during times of market disorder by allowing the clearing of transactions in over-the-counter derivatives through appropriately regulated clearing organizations, and 8. Enhance the competitive position of United States financial institutions and financial markets. (106th Session of Congress, H.R. 5660, Dec.

14th 2000, www.cftc.gov)33.0 Who's whoCommodity trading advisor Except as otherwise provided in this paragraph, the term "commodity trading advisor" means any person who: 1. for compensation or profit, engages in the business of advising others, either directly or through publications, writings, or electronic media, as to the value of or the advisability of trading in: (i) Any contract of sale of a commodity for future delivery made or to be made on or