What does Excluded Commodity mean?
Under the Commodities Exchange Act (CEA) and the Commodity Futures Modernization Act (CFMA), Commodities are classified as an excluded commodity, an exempt commodity or an agricultural commodity. Excluded commodities are not required to be governed by CEA when exchanged between eligible contract participants and are not transacted on an exchange.
Futures Knowledge Explains Excluded Commodity
Examples of excluded commodities are financial instruments such as a security, currency, interest rate, debt instrument, or credit rating; any economic or commercial index. An excluded commodity is assumed to be out of control of participants and so cannot be manipulated. Other than a narrow-based commodity index; or any other value that is out of the control of participants and is associated with an economic consequence