CFTC to Enact Dodd-Frank Rule Aimed at Retail Commodity Trading
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A rule aimed at protecting small investors who buy U.S. commodity contracts from retail brokers will go into effect tomorrow.
The Retail Commodity Transactions rule from the Dodd-Frank Act will allow the agency’s enforcement lawyers to pursue brokerages that offer custom-made futures contracts, not traded on exchanges, that are sold under the guise of spot contracts, according to documents posted on the U.S. Commodity Futures Trading Commission website.