Commodity Futures Trading Commission (CFTC) implemented the retail commodity transactions rule from the Dodd-Frank Act on July 16, 2011, Bloomberg reports. The rule aims to protect small investors who acquire U.S. commodity contracts from retail brokers.
The rule will allow the agency’s enforcement lawyers to pursue brokerages that offer custom-made futures contracts that are sold under the guise of spot contracts. The Dodd-Frank rules seek to reduce risk and increase transparency in trades.
Click here for the story from Bloomberg.