A commodity is produced goods which has a market demand and supply but has no qualitative difference with respect to product being offered by different sellers. Examples are Gold, Silver, and Petroleum etc. Television, though a commodity by normal definition, does not satisfy the financial definition for commodity since each producer has a different quality for same kind of television set.
This act was passed in 1936, replacing the Grains Futures Act of 1922. Commodity Exchange Act lays down federal regulation for all future trading activities including commodities futures trading.
This act was enacted in the year 2000 to overhaul the old regulations and withdrew the prevention of single stock option rule established by Shad-Johnson Accord. It also prevented the Swaps from being regulated by Securities and Exchange Commission and Commodity Futures Trading Commission.
CFTC was brought into existence in the year 1974 as an independent body to control and regulate the commodities trading in the United States of America. The role of CFTC, since then, has undergone many changes, expansions and renewals.
The division of Enforcement under CFTC investigates violations of rules laid down by Commodity Exchange Act and commissions regulations. It also has the right to prosecute the violators. It encourages the public to report any malicious commodity trading transactions.
The SEC has a mandate to provide fair trading ground and regulate the securities trading by protecting the investors and maintaining order.
FIRA regulates and monitors the entire securities firm doing business in United States of America including ones which deals in Commodities trading.