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Be careful, the CFTC uses a very, very broad definition of commodity: The definition of “commodity” in the CEA is broad. ─ It can mean a physical commodity, su
by ucaetano 9y ago
Be careful, the CFTC uses a very, very broad definition of commodity:
The definition of “commodity” in the CEA is broad.
─ It can mean a physical commodity, such as an agricultural product (e.g., wheat, cotton)
or natural resource (e.g., gold, oil).
─ It can mean a currency or interest rate.
─ The CEA definition of “commodity” also includes “all services, rights, and interests . . . in which contracts for future delivery are presently or in the future dealt in.”
So a stock option, for example, fits into this description. But don't mix it with other definitions of commodity used in different contexts.
- sseveran 9y agoBroadly speaking the SEC regulates stock options as they are a derivative that reference a single underlying security, and that security is the equity in a company. Other securities like various swaps that reference a single security are considered generically security based swaps and are regulated by the SEC. The SEC also regulates narrow stock indices which I believe have less than 10 components. Who has jurisdiction for super exotic things where the law is unclear is often a negotiation between the SEC and CFTC.