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The Commodity Trading Act (CTA) was enacted to regulate trading activities in gazette commodities, including the licensing of persons engaged in brokering or advisory functions in relation to trading in commodity forward contracts, leveraged commodity trading, trading in differences and spot commodity trading.
As of 27 February 2008, regulatory oversight of commodity futures contracts and associated brokers, advisers, markets and clearing houses has been transferred from IE Singapore under the CTA to MAS under the Securities and Futures Act (“SFA”) and the Financial Advisers Act (“FAA”).
Thereafter, commodity futures contracts have been regulated under the same framework as other futures contracts. The objective of this transfer is to facilitate Singapore’s growth as a hub for commodity futures trading. A single regulator for all futures related activities streamlines licensing and compliance, as entities broking both commodity futures and financial futures only need a single licence from MAS.
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