StudentShare solutions
Triangle menu

The Commodity Exchange Act - Essay Example

Not dowloaded yet

Extract of sample
The Commodity Exchange Act

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 Commission
2. Streamline and eliminate unnecessary regulation for the commodity futures exchanges and other entities regulated under the Commodity Exchange Act
3. Transform the role of the Commodity Futures Trading Commission to oversight of the futures markets
4. Provide a statutory and regulatory frame-work for allowing the trading of futures on securities
5. Clarify the jurisdiction of the Commodity Futures Trading Commission over certain retail foreign exchange transactions and bucket shops that may not be otherwise regulated
6. Promote innovation for futures and derivatives and to reduce systemic risk by enhancing legal certainty in the markets for certain futures and derivatives transactions
7. 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)3

3.0 Who's who

Commodity 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 ...Show more

Summary

The Commodity Exchange Act (CEA) is an Act of Congress, amended to the effective date of this chapter, codified at the United States Code, Title 7, Section 1, et seq., and all subsequent amendments, additions or other revisions to that Act, unless the administrator, within 10 days following the effective date of the amendment, addition or revision, disallows its application to this chapter or to any provision of this chapter by rule, regulation or order [1989, c.542, 69 (amd)]"(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)1
Author : delphine05
The Commodity Exchange Act essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The Commodity Exchange Act"
with a personal 20% discount.
Grab the best paper

Related Essays

The Securities and Exchange Act of 1933
The market needed to provide investors reliability and accountability. The two objectives of the Securities and Exchange Act of 1933 are: 1. Require that investors receive financial and other significant information concerning securities being offered for public sale; and 2.
4 pages (1000 words) Essay
The Consumer and Their Relation to the Commodity According To Marx, De Certeau, Horkheimer and Adorno
Additionally, a consumer is an individual who can make the choice, to either purchase or fail to do so, at the place of purchase. The consumer is also characteristic with being an individual who can be influenced by advertisements and other marketing strategies.
7 pages (1750 words) Essay
Explore some general aspect of economic processes, such as: gift, commodity, service economies, and implications for exchange sy
However, other anthropologists and social scientists dispute this fact and argue that before the emergence of barter economy, a gift economy existed (Carrier, 1995; Hart, 2005; Yan, 1996). A gift economy is whereby valuable goods and services are given without any agreement for future return but they instill in someone an obligation to reciprocate.
10 pages (2500 words) Essay
Corporation Fraud
Auditors revealed that MF Global suffered a “very severe loss of liquidity” (Bunge 2) as its second quarter earnings revealed a “net loss and a highly leveraged proprietary position in European sovereign debt” (Weidner 4). Specifically, MF Global “had leveraged a $6.3 billion exposure to debt of peripheral European sovereign bonds in the form of maturity transactions” (Weidner 4).
3 pages (750 words) Essay
JPMorgan Chase
The SEC as a regulator, mandates public companies to divulge relevant “financial and other information to the public” so that investors can retrieve the said basic facts and use the same to decide on whether they would “buy, sell, or hold a particular security” (SEC, n.d.).
5 pages (1250 words) Essay
Market Analysis of a specific commodity
According to Holihan (2008), commodity products include both soft and hard primary goods. Soft goods include such agricultural (farm) products as wheat, coffee, and sugar while hard products include oil and petroleum, minerals and mineral ores, and steel among others.
9 pages (2250 words) Essay
Long-run Determinants of Exchange Rates
For this purpose, a range of data was utilised from books, journal articles and the Internet resources. The paper presents an insightful study on the impact of various factors on exchange rates such as monetary policy, inflation, imports and exports, government spending, economic productivity and foreign reserve etc by utilising the research and studies conducted by different scholars [(Krueger, 1983), (Rodriguez, 1977), (Diulio, 1998), (Stockman, 1980) etc].
12 pages (3000 words) Essay
Commodity
However, not many people have wondered how it performs in the markets before it reaches to the consumer. This newsletter will look at its performance in the markets from 2007 to
2 pages (500 words) Essay
Potential for market manipulation in commodities futures markets, the implications of such activities and the ability of regulators to combat this behaviour
Many have commented that redefining manipulation will be the ultimate solution for the issue. However, Jerry Markham had argued that by redefining manipulation will be ineffective for the situations and it will increase the cost. The effort will be again futile as
6 pages (1500 words) Essay
Reasons behind the variations in primary commodity prices
The macroeconomic outcome of the shift in prices of primary commodities has been far-reaching and broad including budgets, poverty, inflations, and balance of payment for exporters and importers. It is not only the prices of the primary commodities which have powerful effects
3 pages (750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation