Article by Armando T. Belly
Billions of dollars of foreign currency contracts (including over-the-counter futures contracts) are traded every day in the foreign exchange markets. Over-the-counter futures transactions in this market may be illegal under the Commodity Exchange Act (CEA). They may violate the CEA's general prohibition against over-the-counter futures transactions. Neither the CEA's cash market exclusion nor the Treasury Amendment clearly places these transactions beyond the CEA's reach. Congress should amend the Treasury Amendment to delete any reference to foreign currencies and the Commodity Futures Trading Commission should exempt most of these transactions from CEA coverage.
About the Author
Armando T. Belly. Associate Professor of Law, New York Law School, J.D., New York University School of Law, 1972. Prior to joining the faculty of New York Law School, Professor Belly was a member of the law firm of Willkie Farr & Gallagher and was in charge of the firm's derivatives practice group.
Citation
71 Tul. L. Rev. 1455 (1997)