Excluded Commodities
“Excluded Commodities” include include interest rates, exchange rates or currencies, securities, security indices, credit risk or measure, debt or equity instrument, certain measures of inflation, economic, or commercial risk, and contingencies beyond the transactors’ control and that are associated with a financial, economic or commercial consequence
- in other words, a very broad variety of financial products that we do not typically think of as “commodities”.
“Excluded Transactions” occurring manually or through an electronic exchange with underlying “Excluded Commodities” between ECPs are generally exempt from regulation under the CEA. Excluded Transactions are still subject to CFTC fraud and market manipulation provisions.
Excluded Transactions
Under the CEA Excluded Transactions are transactions that:
- that are executed manually or through an electronic trading facility
- relate to one or more Excluded Commodities
- between Eligible Contract Participants (judged at the time of execution)
are generally exempt from regulation under the CEA (but are still subject to CFTC fraud and manipulation provisions.