Legislative background and content
On July 2, 2065438, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, hereinafter referred to as the Dodd-Frank Act. This bill is considered to be the most important financial supervision bill in the United States since 1933 glass-steagall act.
When the financial crisis broke out in 2008, the American regulatory system showed many drawbacks. As former US Treasury Secretary Henry Merritt Paulson pointed out: "The regulatory system is full of duplication, major loopholes and regulatory competition." After the financial crisis broke out in an all-round way, no regulator knew the specific scale of the financial market and could not estimate the impact on the US financial system. American financial regulators have actually lost control over the depth and scale of financial derivatives innovation. In this case, only through fundamental innovation can the structural defects of the financial supervision system be eliminated. In this process, how to reshape the effective financial supervision mechanism, maintain the stability of the financial market and protect the legitimate rights and interests of financial consumers without damaging the global competitiveness of the US financial market is the focus of the reform.
Dodd-Frank Act fully reflects the changing direction of American financial supervision concept and mode in the post-crisis era. The bill comprehensively reformed and revised the operating rules and regulatory structure of the financial system, including banks, securities, insurance, hedge funds, credit rating agencies, dealers, investment consulting institutions, accounting systems, listed companies and so on. And authorize the Securities and Exchange Commission, CFTC and other regulatory agencies to issue specific rules to implement the provisions of the Act.
The core purpose of Dodd-Frank Act is mainly reflected in the following aspects: First, to change the status quo of super financial institutions that are "too big to fail" and effectively prevent systemic risks; Second, protect the vulnerable groups in the financial market and avoid financial consumers being deceived. Focusing on the two core issues of systemic risk and consumer financial protection, the bill adjusts and reforms the existing regulatory rules from the aspects of systemic risk, consumer financial protection, restructuring the original regulatory agencies and regulatory functions, improving the regulatory standards for "systemically important" financial institutions, filling the regulatory gaps in financial industries such as hedge funds, regulating and restricting securitization and OTC derivatives financial markets, strictly regulating bank capital and business, and regulating the salary of Wall Street executives.
Key points of laws and regulations in futures and derivatives markets
The reconstruction of the financial supervision system by Dodd-Frank Act is rooted in the current financial crisis. The regulatory gap in futures and derivatives markets, especially over-the-counter markets, is an important reason for the financial crisis, so the regulation of futures and derivatives markets is also the focus of the bill.
Reconstruct the supervision mode of futures and derivatives market
When the financial crisis broke out, the United States implemented a "double-line multi-head" financial supervision model. This model originated from the Great Depression in 1930s. At that time, Congress decided that the mixed operation of banks and securities industry was the chief culprit that led to conflicts of interest and damaged the security of the financial system, so the system of separate operation and supervision was gradually established through the glass-steagall act. It was not until the end of 1990s that the Financial Services Act (1999) was promulgated that the system of separate operation of securities, banks and insurance in the United States ended, but the system of separate supervision was still maintained, only the institutional supervision reform in the past established the supervision ownership based on the service function.
At the level of government supervision, the securities and futures market in the United States is mainly supervised by the Securities Regulatory Commission, the Futures Regulatory Commission and the Federal Reserve, while the bond market is mainly supervised by the Federal Reserve, the Supervision Bureau of Fiscal Savings Institutions, the Federal Deposit Insurance Corporation, the Coin Department of the Ministry of Finance and the Securities Regulatory Commission. With the mixed operation of financial institutions, especially the cross-industry and cross-market development of derivatives, this "umbrella" financial supervision system presents many disadvantages. The functions of regulatory agencies have both division of labor and overlapping, which leads to regulatory overlap, regulatory vacuum and regulatory arbitrage. Over-the-counter derivatives market expanded rapidly in the regulatory gap, which eventually led to systemic risks and financial crisis.
The primary goal of Dodd-Frank Act on the reform of American financial market is to establish a supervised, coordinated and orderly financial market structure and unify the management of financial markets. To this end, the bill established a series of institutions such as the Financial Stability Supervision Committee, the Consumer Financial Protection Bureau, the Financial Research Office, and the Federal Insurance Office. At the same time, cancel the supervision office of savings institutions, transfer the supervision power to the monetary supervision office, and strengthen the powers of the Federal Deposit Insurance Corporation, the China Securities Regulatory Commission and the Federal Reserve. It not only reconstructs the functional scope of various regulatory agencies as a whole, but also emphasizes the unified and comprehensive supervision of systemically important financial institutions.
On the one hand, the bill establishes a unified and independent deliberation and coordination body-the Financial Stability Supervision and Management Committee, which is composed of supervisors of federal financial institutions and independent members without voting rights, and is chaired by the Minister of Finance. At the same time, we will expand the supervision function of the Federal Reserve and emphasize the unified and comprehensive supervision of systemically important financial institutions. On the other hand, the bill focuses on the reconstruction of the regulatory system rather than strengthening direct intervention in the financial market. Although the establishment of regulatory agencies and their terms of reference have been extensively adjusted, the Bill does not intend to directly restrict the free operation of the market, but in principle authorizes regulatory agencies to formulate corresponding regulations according to the actual situation and the reform process. In other words, the bill more reflects the top-level design of financial market reform and provides a direction for future development.
Strengthen the supervision of OTC derivatives and promote the standardization and centralized liquidation of OTC transactions.
The in-depth reflection on the financial crisis has strengthened the determination of the US regulatory authorities to strengthen supervision over the OTC derivatives market. The successful experience of the smooth operation of the floor trading market has inspired the theoretical circles and the regulatory authorities of various countries, and the efficient centralized clearing function has been fully affirmed by the regulatory authorities. After the financial crisis, the biggest change in the OTC derivatives market in the United States is to gradually standardize OTC transactions and bring them into centralized liquidation and unified supervision.
The contents of OTC derivatives market supervision are mainly stipulated in Title VII (Wall Street Transparency and Accountability Act) and Title VIII (Payment, Clearing and Settlement Supervision Act) of Dodd-Frank Act. At present, the supporting system construction of over-the-counter trading supervision measures is still in implementation. The reform goal of the bill is to maximize the standardization of OTC derivatives trading, centralization of liquidation, centralization of data storage and transparency of the market, so as to ensure that regulators and market participants can grasp market information in a timely, complete and accurate manner and prevent risks from accumulating in the dark.
According to the spirit of Dodd-Frank Act, regulating OTC trading and compulsory centralized liquidation are two aspects to strengthen the supervision of OTC derivatives. The bill divides swaps into "swaps (non-securities-based swaps)" and "securities-based swaps" and "excluding derivatives to which Chapter VII applies". On the subject, the Bill defines "swap dealers", "major swap participants", "securities-based swap dealers" and "major swap participants based on securities" respectively, and regulates different subjects in different categories.
In order to implement the core principles of the G-20' s commitment to derivatives reform, the bill advocates that all non-exempt swaps should be traded on the floor and centrally cleared. To this end, the bill raised the margin and risk exposure requirements for non-centralized clearing swaps, and required the swap parties to still sign bilateral standard swap documents.
The bill provides different clearing places for "swaps" and "securities-based swaps", requiring "swaps" to be cleared in the Derivatives Clearing Organization (DCO) and "securities-based swaps" to be cleared in clearing institutions. Swaps approved for centralized clearing must be traded in the trading places that have been examined and registered by the regulatory authorities, that is, "trading places" under Chapter VII of the Act, which specifically include two types: designated contract markets (DCMs) and swap execution facilities (sef). "Securities-based swaps" are traded on national stock exchanges or securities-based swap execution institutions. The bill sets core principles for DCO, DCM and sef, such as compliance, qualification access, financial resources, information submission and risk control measures, in order to improve the transparency of OTC market transactions and further control risks.
Broaden risk control measures in three dimensions to curb excessive speculation.
The bill proposes several amendments to the risk control system of American futures and derivatives markets to curb excessive speculation, among which the most controversial focus is the reform and improvement of the position limit system. Taking the warehouse restriction system as an example, CFTC has made rules according to legal authorization, and broadened the types of derivative products and physical commodity futures to which the warehouse restriction measures are applicable. Specifically, the bill broadens the scope of application of the warehouse restriction system from both horizontal and vertical angles, and strengthens the refinement of the warehouse restriction management system.
On the one hand, the bill will cover 9 to 28 kinds of commodity futures. CFTC rules extend warehouse restrictions to 28 physical commodity futures and their corresponding swap transactions, including corn, wheat, soybeans, oats, cotton, petroleum, heating oil, gasoline, cocoa, milk, sugar, silver, palladium and platinum.
On the other hand, the bill requires CFTC to set position limits for commodity derivatives other than traditional futures and options. The plan gives CFTC the right to restrict OTC swaps and exchange futures trading. First of all, the bill requires CFTC to formulate new rules to increase the position limit of commodity futures, options and their equivalent swap contracts. Secondly, the Bill provides for the calculation method of the sum of economic equivalent swap contracts, futures and options contracts, and the calculation method of the sum of contracts based on the same commodity but traded in different markets. Thirdly, the bill explicitly requires CFTC to set the position limit standard for agricultural products and exempted commodities traded in the designated trading market (DCM) within 180 days and 270 days after the Dodd-Frank Act comes into effect. Finally, the bill also authorizes CFTC to formulate normative measures for speculative positions in general and all months, newly listed products, spot months and cash-settled natural gas contracts, further strengthening the refined management of quota measures.
Pay attention to risk isolation and establish a necessary "firewall" between markets with different risk types.
Complex derivatives imply risks themselves, and financial innovation and mixed operation aggravate the spread of risks. The financial crisis has made governments and regulators fully aware of the high leverage, high risk and rapid risk transmission of financial derivatives. In order to control risks and block the transmission path of risks, Dodd-Frank Act takes a multi-pronged approach and establishes a multi-dimensional "firewall" between different types of risks.
On the one hand, the bill establishes a "firewall" between traditional business and derivative business by introducing the "Volcker rule". The main duty of the Volcker Rule is to reduce the risk investment behavior that triggered the current financial crisis, which once prompted banks such as Goldman Sachs to close their proprietary trading business. The main contents include four aspects: limiting the scale of commercial banks, limiting banks' proprietary trading, cutting off relations with hedge funds and private equity funds, and requiring deposit-taking banks to divest derivatives business.
First of all, the Volcker rule stipulates that the share of a single financial institution in the savings deposit market shall not exceed 10%. Secondly, the rules prohibit institutions accepting deposit insurance, bank holding companies and their subsidiaries from engaging in short-term proprietary trading related to any securities, derivatives and other financial instruments through their own bank accounts. Thirdly, the Rules allow banks to own or invest in private equity funds and hedge funds, but their total investment shall not exceed 3% of the bank's Tier 1 capital. Finally, the Detailed Rules require banks to split the risky derivatives trading business such as agricultural products swaps, energy swaps and most metal swaps into subsidiaries, and only keep interest rate swaps, foreign exchange swaps and gold and silver swaps.
However, this provision has also been strongly opposed by all parties in the market. Based on various pressures, the regulatory authorities decided to give the banking industry a two-year adaptation period (20 14, 2 1 year before July) to gradually complete the divestiture of self-operated business. For low-liquidity financial assets such as venture capital and private equity investment, they will not be bound by the Volcker rule before 2022.
On the other hand, Dodd-Frank Act established a risk isolation mechanism between on-market and off-market markets. Articles 724 and 763 of the Bill stipulate the risk isolation requirements of "swaps" and "securities-based swaps" for centralized settlement and non-centralized settlement. For centralized settlement swaps, the bill requires commission agents to specify swap collateral and prohibits brokers from mixing their own funds with swap collateral; For swaps with non-centralized settlement, the bill specifically stipulates the requirements of "collateral separation", including collateral separation management and capital separation storage. First of all, assets as collateral for non-centralized settlement swap transactions should be managed separately. The counterparty of a swap transaction has the right to ask the counterparty to manage the collateral separately at the beginning of the transaction. If this requirement is not made, the swap dealer or major swap participant shall make a quarterly report to the counterparty, indicating that its back-office management process of collateral conforms to the counterparty agreement. Secondly, such collateral should be kept in a separate account, independent of the own assets and other rights and interests of swap dealers or major swap participants. The independent account should also be held by an independent third-party depository institution, and it should be clear that it is held by and on behalf of the counterparty.
Strengthen the protection of domestic investors and appropriately implement "long arm jurisdiction"
With the internationalization of futures and derivatives markets, in order to keep the bottom line that domestic financial markets do not generate systemic risks and protect the interests of domestic investors, Dodd-Frank Act not only strengthens the supervision of domestic futures and derivatives markets, but also supervises foreign institutions that may affect the interests of American investors.
According to the new regulations, registration is only for the case that participants in the United States can directly access the purchase and sale orders from the United States to the foreign exchange order matching system. That is to say, as long as the final connection point with the foreign exchange trading system is in the United States (whether it is an American futures company or an American investor) or directly connected, foreign exchange must be registered, others are regarded as indirect connections, and foreign exchange does not need to be registered. The core of this system is to exercise appropriate "long-arm jurisdiction" for the protection of domestic investors and strengthen the necessary management of foreign derivatives exchanges and intermediaries directly related to the United States, so as to ensure that these foreign trading places are under comparable and comprehensive supervision and management by the relevant government regulatory authorities in the home country.
Intensify the crackdown on market fraud such as manipulation, and appropriately relax the identification standards.
Internationally, a unified and effective financial market needs the integrity of the market, so it has always been an important mission of the regulatory agencies to crack down on prohibited transactions such as insider trading, market manipulation and fraud. There are several clauses in Dodd-Frank Act that modify and improve the prohibition of market manipulation, insider trading and market fraud stipulated in the Commodity Exchange Law.
Taking the latest regulations on market manipulation in American futures and derivatives markets as an example, the determination of manipulation behavior has always been a big problem that puzzles CFTC and judicial organs. In practice, according to the Commodity Exchange Law, American judicial organs have established four traditional elements of determining manipulation through cases: the defendant has the ability to influence market prices; The defendant deliberately created or influenced the price or price trend, resulting in the price not reasonably reflecting the market supply and demand situation; There are labor prices; The defendant's behavior led to an artificial price.
The most important change of the bill in investigating manipulation behavior is to authorize CFTC to expand the subjective intention of manipulating the market to reckless. In the past, CFTC had to prove that the defendant had a specific intention to make artificial prices to ensure successful prosecution of market manipulation. But the new regulations relax this standard. According to the Dodd-Frank Act and the Detailed Rules for the Implementation of Anti-manipulation, market manipulation can be divided into two categories: "manipulation using or attempting to use manipulation and fraud" and "price manipulation".
In other words, the Dodd-Frank Act has clearly distinguished the identification standards of different types of manipulation at the legal level. In the traditional sense, "price manipulation" must have specific intentions, but for other manipulations or manipulations based on fraud, the subjective elements are only general intentions or rashness. In addition, according to the law and the detailed rules for the implementation of anti-manipulation, the requirement to prove the existence of artificial prices is cancelled for manipulation based on fraud. These measures will undoubtedly reduce the difficulty of CFTC in identifying manipulation, and make CFTC more effective in promoting market integrity and protecting market participants.
Enlightenment to the Development of China Futures and Derivatives Market
It can be seen that although Dodd-Frank Act continues the idea of "crisis legislation" in American financial industry, it is based on the development of global financial industry in the United States and outlines the general idea of future financial industry supervision trend. It is not difficult to predict that the bill will have an important impact on global futures and derivatives supervision, and provide important enlightenment for China to develop futures and derivatives markets and improve the supervision system.
Improve the legislation and supervision of futures and derivatives markets.
At present, China has not promulgated the basic laws of futures and derivatives markets. The Regulations on the Management of Futures Trading is the basic law to regulate the futures market, and the specific supervision system of derivatives market in other fields is mostly established in the form of ministerial regulations. With the development of futures market, the pace of derivative innovation is accelerated and deepened, and the legal attributes of products are complicated. Only relying on the Regulations on the Management of Futures Trading to build a legal framework can not fully meet the deep-seated development needs of the market, especially the development needs of derivatives. Limited to the level of effectiveness, the Regulations on the Administration of Futures Trading lacks the norms of the basic legal relations, civil rights and obligations and legal responsibilities of the futures market, and cannot coordinate the specific systems of futures and derivatives markets with the relevant civil and commercial laws such as contract law and guarantee law. The lack of basic legal system and rule system in the futures market hinders the introduction of new systems and new ideas, making new products detached from the edge of legal norms, which is not conducive to the healthy and orderly development of the whole market and affects the better play of risk management in the futures market.
On the other hand, China's financial industry as a whole implements the mode of separate supervision of the financial industry, and implements centralized and unified supervision in the securities and futures market. With the development of financial mixed operation, especially the extensive use of financial derivatives and the rapid expansion of transaction scale, the traditional financial institutions and financial markets have undergone structural changes, the boundaries between financial institutions and financial products have gradually blurred, and the basis of financial supervision has undergone essential changes. The traditional institutional supervision mode of separate supervision has gradually failed to adapt to the "comprehensive" nature of derivatives. From the Dodd-Frank Act's experience in reforming the financial market supervision mode and reconstructing the unified supervision of financial markets, it is not difficult to see that due to the inherent cross-market and cross-industry "comprehensive" characteristics of derivatives, an overall unified supervision idea is needed to coordinate the functions of various regulatory agencies.
With the development of futures and derivatives markets, it is urgent to establish a unified supervision model that meets the needs of the development of futures and derivatives markets in China, and the macro-level system must be designed by law. It is necessary to speed up the formulation of the Futures and Derivatives Law, provide more effective institutional supply for the market, further deepen the functions of the futures and derivatives market, and provide more comprehensive, effective and in-depth risk management services for the national economy.
Attach importance to the organic combination of on-site and off-site derivatives markets
Dodd-Frank Act not only clarifies the direction of reforming the supervision mode of OTC derivatives trading in the United States, but also provides reference for the development of OTC derivatives market and risk control means in China.
In recent years, China's OTC derivatives market has shown a trend of sustained acceleration and rapid development. Take commodity trading as an example. In 2008, the electronic transaction volume of commodities in China exceeded 5 trillion yuan. Before 1 1 year, the total transaction amount exceeded 10 trillion yuan, and there were more than 200 kinds of transactions. However, due to the lack of supervision and institutional constraints in actual operation, the chaos in the trading market is frequent, which can easily lead to systematic and regional financial risks. In view of this, the State Council issued the "Decision on Cleaning up and Rectifying Various Trading Places and Effectively Preventing Financial Risks" on October 201KLOC-0/65438, namely "Document No.38". After the rectification, although about 10% of the trading markets were closed, more than 300 trading markets in China continued to operate. Compared with 20 1 1, the absolute number of domestic OTC markets still shows an absolute growth trend.
Judging from the scale of global OTC derivatives market, China OTC derivatives market still has great room for development. 199 1. At the end of the period, the total amount of unexpired contracts in the global OTC market was USD 6 trillion. By the end of 20 1 1, this figure had reached USD 647.8 trillion, an increase of over 100 times.
In fact, judging from the trend of financial reform in the United States, it can be said that pure OTC derivatives trading is shrinking, and it is replaced by OTC derivatives trading with unified supervision and centralized liquidation. Therefore, in terms of OTC derivatives market supervision, China's futures exchanges can learn from Dodd-Frank Act and explore the three-dimensional integration of OTC products and on-site clearing. In terms of trading, explore the development of OTC standard financial derivatives trading and realize OTC derivatives trading; In terms of settlement, explore the unified settlement of OTC standard financial derivatives and continuously expand the OTC business of futures exchanges. By improving the supervision system and establishing a supporting data filing and information disclosure mechanism, the balance between the flexibility of over-the-counter trading and the controllability of on-site risks can be achieved.
Realize the refined management of risk control
From the CFTC's experience of implementing Dodd-Frank Act, restraining excessive speculation and strengthening the refined management of risk control, there is still much room for improvement in the refined management of China's risk control system.
Taking the warehouse quota system as an example, after the Dodd-Frank Act was promulgated, CFTC further formulated a more detailed warehouse quota method. For example, in the calculation method of warehouse limit level, CFTC has formulated corresponding calculation formulas of warehouse limit level on the basis of distinguishing spot months from non-spot months, delivery varieties and delivery methods, which has improved the pertinence and practicability of risk management measures.
At present, China's position limit system is formulated, revised, implemented and supervised by futures exchanges. In practice, the position limit standard of listed varieties still needs the approval of CSRC. Each futures exchange adopts a combination of absolute limit and proportional limit. According to the general month and delivery month, customers and members (futures and non-futures members), different listed products adopt different position limit standards. Compared with CFTC rules, when calculating the general monthly positions, the futures exchange in China calculates the actual positions of each contract instead of the net positions. In addition, in addition to limiting customers' positions, we also limit members' positions. Generally speaking, China's futures exchanges still implement strict warehouse limit standards. We can learn from the experience of the United States in strengthening the fine management of risk control and formulate more perfect risk management measures to promote the effectiveness of risk management and the improvement of market efficiency.
Pay attention to the risk isolation between different risk types of markets.
Financial derivatives have the characteristics of high risk and risk transmission. The United States has learned a profound lesson from the current financial crisis, and established a "firewall" between different risk types by issuing a series of risk isolation norms such as Volcker rule and collateral separation requirements. This risk transmission blocking mechanism is of great significance to the development of China's futures and derivatives markets.
At present, the system construction of risk isolation between different risk types of markets in China can also be carried out from the dimensions of risk isolation between traditional markets and derivatives markets, on-market and off-market markets, and domestic and overseas markets.
On the one hand, we can learn from the concept of "Volcker" rule, limit the types and proportions of financial institutions participating in proprietary speculative transactions, and better guard against systemic risks. On the other hand, with the development and internationalization of China's futures and derivatives markets, we can explore the establishment of risk isolation zones between on-site and off-site markets, and between domestic and overseas markets. It is suggested to establish effective risk isolation between on-site settlement members and off-site settlement members, and between domestic settlement members and overseas settlement members. Taking the risk isolation measures of CME as an example, CME settlement system has a default management policy, which aims to ensure strong operational capability in case of credit default, so as to further reduce risk exposure. First of all, CME has established a guarantee fund system, and each major asset class has a special guarantee fund, which is only used to remedy the losses caused by the default of this asset class, and each clearing member only bears the default losses of this variety. Separate financial guarantees protect clearing members from risk spreading among asset classes. Secondly, in terms of default management procedures, the waterfall settlement design of CME settlement system enables it to provide multi-level protection for settlement members' losses in case of default.
Effectively protect the interests of domestic investors in the process of internationalization
As mentioned above, under the background of world economic integration, China's futures and derivatives markets have already formed competition with overseas markets, and it is urgent to gradually complete market opening through "going out" and "bringing in". "Going out" and "bringing in" are complementary and interdependent. In the process of "going out", we should pay attention to the study and research of foreign laws and regulations. When implementing the strategy of "bringing in", it is necessary to clarify the boundaries of regulatory powers of various countries and attach great importance to the "long-arm jurisdiction" implemented by the "target" countries to protect their investors. While "bringing in", on the one hand, we should supervise foreign market participants, on the other hand, we should also pay attention to protecting the interests of domestic investors.
Taking CFTC overseas registration system as an example, with the opening of futures and derivatives markets, China futures exchanges need to be examined by foreign regulators when introducing international investors and China investors to invest in foreign exchange. On the contrary, while countries are fully protecting their own investors, if China's regulatory agencies do not have corresponding system construction, the balance of interests will potentially tilt to foreign countries. Therefore, based on the principle of reciprocity in international cooperation, it is suggested that in the process of opening up China's futures and derivatives markets, full consideration should be given to strengthening the management of overseas derivatives exchanges in which Chinese investors directly participate, and if necessary, a registration system can be implemented.
Improve the identification of illegal acts.
To maintain the integrity of the financial market, it is necessary not only to establish rules and regulations for product and service innovation, market transformation and system innovation, but also to enhance market transparency and the confidence of market participants and create a fair market environment by cracking down on trading bans such as insider trading, market manipulation and fraud. Guiding the establishment of rules and cracking down on violations are like "two sides of the same coin". Only by grasping both hands can we promote the market function to play better.
In the identification of illegal acts in China's futures market, the implementation effect of the prohibition measures is limited to some extent due to the lack of support from the superior law. Taking anti-market manipulation as an example, there are no three concepts of "manipulating futures trading price", "manipulating futures trading volume" and "manipulating futures market" in China, and there are no clear norms on the constituent elements and identification standards of different types of manipulation. It is suggested that the legal concepts of market manipulation and other prohibited acts should be clarified in future legislation, and the types and general elements of manipulation should be further refined. In terms of the constitutive requirements and identification standards of anti-market manipulation in futures and derivatives markets, we can learn from international anti-market manipulation legislation and judicial experience, base on the particularity of the prohibition of futures and derivatives markets, appropriately reduce the difficulty of identification on the basis of fully considering the implementation effect, give full play to the deterrent effect of the prohibition clause, and maintain the integrity of futures and derivatives markets.