What is the law on the exchange of commodities?
The Community Exchange Act is the Federal Act, which was passed and adopted by the United States Government on June 15, 1936. It replaced the 1922 Futures Act. Part of this standard was to require any futures and commodity stores to take a recognized and legally functioning exchange.
By establishing a standard for trading with futures and commodities in the United States, the law on the exchange of commodities has completed several important tasks. First, the act helped to stabilize the overall picture for investments and investors, which was still very shaky after a stock market accident in 1929. Some provisions contained in the law were specially focused on qualifying potential investors, and thus avoided some factors that led to the one that led to some factors that led to some factors of the previous accidents.
second, the law on VThe commodity has helped regulate paths that could be used to trade commodities. Ensuring that trades carried out through exchanges that operated in the instructions set by the Federal Government could be reduced by the amount of illegal trading at that time. The provisions within the law were wide enough to allow the government to investigate any suspicious activity and often protect the best interests of legitimate investors.
Finally, the law on the exchange of commodities laid the foundations for creating a solid infrastructure at the federal level to manage the provisions found within the law. While various organizations in the government cooperated in promoting provisions, the commission for trading commodity futures was established in 1974 to centralize this effort. The CFTC continues the administrator of the Commodity Exchange Act today. To help this process, CFTC created in year 1982 National Futures Association in 1982. Between the efforts of both entities, all the possibilities of futures and contracts traded on organized commodity exchanges and are subject to compliance with the standards stipulated by the commodities Act.