The Agreement To Provide A Standardized Commodity

With the exception of the agreement approved in point (b), no person may propose to enter into, conclude or confirm a transaction for the delivery of a commodity under a standardised contract commonly known as margin, margin, leverage or leverage, or contract, account, arrangement, scheme or device which, according to the Commission, , performs the same function or function as a standard contract. or is marketed or managed in much the same way as such a standardized contract. 1983 – underneath. (c) Pub. The L.A. 97-444, No. 234, paragraph 1), replaces “must regulate” for “may prohibit or regulate” and the Commission has authorized a ban on transactions for the supply of goods under a standardised contract that was not authorized by the Commission`s rules, regulations and orders in force on 9 December 1982, when transactions are found to be contrary to the public interest. The agreement to make a purchaser of a standardized product available at a certain time, at a certain future price, is the underlying asset comprising physical commodities or other financial instruments. Futures contracts describe the amount of the underlying and are standardized to facilitate trading on a futures exchange. Futures contracts can be used for hedging or trading speculation.

That`s not the case. (b) Pub. 99-641. (b) general. Before the change, under the number. (b) read: “No person may propose in any transaction for the supply of silver ligns, gold ligns or mass gold or mass gold coins as part of a standardized contract described in subsection (a) of this section, contrary to any Commission rule, regulation or order to ensure the financial solvency of the transaction or to prevent any manipulation or fraud. , to take or confirm. Provided that such a rule, regulation or order can only take place after notification and the possibility of being heard.” That`s not the case. (c) Pub. 99-641.

(c) in general. Prior to the amendment, sub-part (c), “the Commission regulates all transactions under a standardized contract described in subsection (a) of this section, with goods described in point b) of this section or other goods (excluding goods described in subsection (a) of this section) under the terms of the rule under the Commission`s regulation. or an order that only takes place after a hearing and the possibility of being heard. The Commission may set different conditions for such transactions involving different products. Notwithstanding the other provisions of this section, the Commission may prohibit any transaction to deliver a commodity under a standardized contract described in (a) of this section, which is not authorized by the Commission`s rules, regulations and orders in force on December 9, 1982, when the Commission finds that such transactions are contrary to the public interest.” Futures are used by two categories of market participants: hedgers and speculators.

Updated: April 13, 2021 — 6:27 am