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Commodity Futures Act

The purposes of this Act are to protect investors from unfair, improper or fraudulent practices; and to foster fair and efficient commodity futures markets and confidence in those markets.

Mandates record-keeping of all trades/transactions, with Commission able to designate reviewers to verify compliance. Requires annual filing of certified financial statements. Specifies details of information on liquidated trades to be provided to customers.

The record keeping format, medium, and retention period shall comply with SEC Rule 17a-4.

Penalties:

Penalties for contravention can include a fine of not more than $5 million or imprisonment for a term of not more than five years less a day, or to both.

 

See How KOMpliance Addresses Commodity Futures Act Compliance Requirements

 

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