What does Exempt Commodity mean?
A commodity that is exempt from the rules framed under the CEA. Commodity markets are regulated by the Commodities Exchange Act (CEA) and the Commodity Futures Modernization Act (CFMA). However the degree of regulation depends on the commodities traded, the participants and the method of trading. Some commodities such as energy and metals are exempted under the CEA rules.
Futures Knowledge Explains Exempt Commodity
The Commodity Exchange Act defines an exempt commodity as any commodity other than an excluded commodity or an agricultural commodity. The financial commodities are considered less susceptible to manipulation than the physical commodities. And so a financial commodity is classified as exempt commodity.