What does Commodity Exchange Act (CEA) mean?
The Commodity Exchange Act (CEA) 1936 is an Act to regulate the trading of commodity futures in the United States. The Commodity Futures Trading Commission (CFTC) was established under this Act to monitor the U.S. futures and options markets. The Act provides the CFTC to frame regulations for the trading of commodities and futures and options.
Futures Knowledge Explains Commodity Exchange Act (CEA)
The Commodity Exchange Act replaced the Grain Futures Act 1922, an Act to oversee trade in grains and regulate the industry. The Commodity Exchange Act was expanded to cover more and different types of goods characterized as commodities. The Act provides that any option on a commodity and all futures must occur on an exchange and not over-the-counter.