Requirements for Electronic Trading Facilities for Exempt Commodities
 
Transactions must be principal to principal (no brokers)
 
Parties must be Eligible Commercial Entities
Same as Eligible Contract Participants ($10 mil. total assets or $1 mil. net worth) except:
Must:
have demonstrable ability to make or take delivery of the underlying commodity, or
incur risks, in addition to price risk, related to the commodity, or
be a dealer
May not be a(n):
investment company
commodity pool
employee benefit plan
individual
 
The facility must:
 Register with the CFTC giving:
Name, address, person to receive notices
Commodity categories to be traded
Certifications that:
Executives meet certain qualifications
The facility will comply with exemption conditions
The facility will notify the CFTC of any changes in information provided
Identity of any clearing organizations to be used
Give the CFTC access to trading protocols and electronic access to the system
Provide reports to the CFTC regarding executed transactions as requested by the CFTC
Maintain records of all transactions and participants for 5 years and give the CFTC access to the records
Publicly disseminate price, trading volume and other trading data as required by the CFTC
On special request, deliver to the CFTC such other information as it may request
 
Transactions on such facilities are subject to the anti-fraud and anti-market manipulation jurisdiction of the CFTC