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Statements

Subject Item
dbr:Commodity_Futures_Modernization_Act_of_2000
rdf:type
yago:Law108441203 yago:Legislation106535222 yago:Abstraction100002137 yago:CivilLaw108453464 yago:Collection107951464 yago:Group100031264
rdfs:label
Commodity Futures Modernization Act of 2000
rdfs:comment
The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that ensured financial products known as over-the-counter (OTC) derivatives remained unregulated. It was signed into law on December 21, 2000 by President Bill Clinton. It clarified the law so most OTC derivative transactions between "sophisticated parties" would not be regulated as "futures" under the Commodity Exchange Act of 1936 (CEA) or as "securities" under the federal securities laws. Instead, the major dealers of those products (banks and securities firms) would continue to have their dealings in OTC derivatives supervised by their federal regulators under general "safety and soundness" standards. The Commodity Futures Trading Commission's (CFTC) desire to have "functional regulation" of the
dbp:name
Commodity Futures Modernization Act of 2000
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dbo:thumbnail
n10:Brooksley_Born.jpg?width=300
dbp:effectiveDate
2000-12-21
dbp:signeddate
2000-12-21
dbp:signedpresident
dbr:Bill_Clinton
dbo:abstract
The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that ensured financial products known as over-the-counter (OTC) derivatives remained unregulated. It was signed into law on December 21, 2000 by President Bill Clinton. It clarified the law so most OTC derivative transactions between "sophisticated parties" would not be regulated as "futures" under the Commodity Exchange Act of 1936 (CEA) or as "securities" under the federal securities laws. Instead, the major dealers of those products (banks and securities firms) would continue to have their dealings in OTC derivatives supervised by their federal regulators under general "safety and soundness" standards. The Commodity Futures Trading Commission's (CFTC) desire to have "functional regulation" of the market was also rejected. Instead, the CFTC would continue to do "entity-based supervision of OTC derivatives dealers". The CFMA's treatment of OTC derivatives such as credit default swaps has become controversial, as those derivatives played a major role in the financial crisis of 2008 and the subsequent 2008–2012 global recession.
dbp:acronym
CFMA
gold:hypernym
dbr:United
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