The Act provides federal regulation of all commodities and futures trading activities and requires all futures and commodity options to be traded on organized exchanges. In 1974, the Commodity Futures Trading Commission (CFTC) was created as a result of the Commodity Exchange Act, and in 1982 the National Futures Association (NFA) was created by CFTC.
(12) Eligible contract participant
(vi) an employee benefit plan subject to the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.), a governmental employee benefit plan, or a foreign person performing a similar role or function subject as such to foreign regulation—
except that such term does not include an entity, instrumentality, agency, or department referred to in subclause (I) or (III) of this clause unless (aa) the entity, instrumentality, agency, or department is a person described in clause (i), (ii), or (iii) of paragraph (11)(A) of this section; (bb) the entity, instrumentality, agency, or department owns and invests on a discretionary basis $25,000,000 or more in investments; or (cc) the agreement, contract, or transaction is offered by, and entered into with, an entity that is listed in any of subclauses (I) through (VI) of section 2 (c)(2)(B)(ii) of this title;
Agreements, contracts, and transactions in exempt commodities that are traded on a principal-to-principal basis on electronic trading facilities between eligible commercial entities may be traded on an exempt commercial market (ECM) and be exempt from most CFTC regulation if the market satisfies the conditions for the exemption found in Sections 2(h)(3)-(5) of the Commodity Exchange Act (CEA), 7 USC 2(h)(3)-(5), including a requirement that the exempt commercial market notify the CFTC. CFTC Regulation 36.3, 17 CFR 36.3, contains further details on compliance with CEA Sections 2(h)(3)-(5).
A facility that elects to operate as an ECM must give notice to the Commission and comply with certain informational, recordkeeping, and other requirements.
An ECM is prohibited from claiming that the facility is registered with, or recognized, designated, licensed, or approved by, the Commission.