What does CEA stand for?

The allegedly manipulative trading practices presented an issue of first impression for the CFTC under the Commodity Exchange Act.

“The Commodity Exchange Act states that the CFTC shall impose limits on trading and positions as necessary to eliminate, diminish or prevent the undue burdens on interstate commerce that may result from excessive speculation,” Gensler said The CFTC currently sets and ensures adherence to position limits with respect to certain agriculture products, but these same restrictions are not applied to the energy markets.

Although the use of the futures markets by institutional investors to gain long-term exposure to commodities represents a new type of speculation, the Commodity Exchange Act (CEA)--the law governing futures trading--does not prohibit this activity.

The CFTC alleges BP violated sections of the Commodity Exchange Act prohibiting trading by unregistered futures commission merchants.

The Commodities Futures Modernization Act of 2000 amended the Commodity Exchange Act to allow trading of futures contracts on individual equity securities and narrow-based indices of equity securities.

The SOP amends SOP 95-2 to include within its scope investment partnerships that are commodity pools subject to regulation under the Commodity Exchange Act of 1974.

The AICPA AcSEC issued a proposed statement of position that would amend SOP 95-2, Financial Reporting by Nonpublic Investment Partnerships, to include within its scope a type of investment partnership--known as a commodity pool--formed to trade interests in commodities and regulated under the Commodity Exchange Act of 1974.

We understand, however, that the committee is concerned that these provisions may conflict with provisions of the Commodity Exchange Act and rules promulgated thereunder as well as provisions of the Bankruptcy Code.