Commodity Exchange Act (CEA)

The principal legislation governing the trading of commodities and futures in the United States. This act, as amended, establishes the Commodities Futures Trading Commission (CFTC); sets out the circumstances under which the CFTC regulates, or can exempt from regulation, transactions in physical commodity and financial futures contracts; and incorporates the Shad-Johnson Agreement which describes the division of authority and responsibility for regulation of financial contracts between the CFTC and the Securities and Exchange Commission (SEC.)

Glossary * C