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Venues for the Trading of Exempt Commodities under the Commodity Exc

DCM 

(CEA Section 5) 

Commercial DTEF 

(CEA Section 5a) 

Exempt Commercial 

 Market (ECM) 

(CEA Sections 2(h)(3)-(5)) 

(CE

Commodities: No limitations Commodities: Any nonagricultural commodity (e.g.,

financial, energy, metals, etc.) 

Commodities: Exempt 

commodities (e.g., energy, metals, chemicals, emission allowances etc.) 

Commocommochemicetc.) 

Method of Trading: Trading can take place on an electronic trading facility or by open outcry 

Method of Trading: Trading can take place on an electronic trading facility or by open outcry 

Method of Trading: Electronic 

multilateral trading (i.e., many-tomany platforms) 

Method multilatmarketsbilatera

Number of Entities: Twelve 

DCMs are currently operating; NYMEX is the largest listing energy products 

Number of Entities: None have applied 

Number of entities: 19 have filed 

notice (12 offer or plan to offer energy contracts, with Intercontinental Exchange easily the largest) 

Numbe

(very diuniversgiven thbilatera

Notice Requirement: Must apply 

to and receive prior approval from CFTC; must satisfy various nonprescriptive designation criteria (8) and core principles (18) 

Notice Requirement: Must apply 

to and receive prior approval from CFTC; must satisfy various nonprescriptive registration criteria (4) and core principles (9) 

Notice Requirement: Yes; simple notice containing contact information and description of operations 

Notice 

exempt

Participants: No limitations Participants: Eligible Commercial 

Entities (ECEs) – subset of Eligible Contract Participants (ECPs); excludes individuals, but includes funds 

Participants: ECEs only – subset 

of ECPs; excludes individuals but includes funds 

Particip

Participfunds, aindividu

Intermediation: Permitted Intermediation: None; limited to 

ECEs trading for their own accounts 

Intermediation: None; principalto-principal trading only Interme

done th
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DCM 

(CEA Section 5) 

Commercial DTEF 

(CEA Section 5a) 

Exempt Commercial 

 Market (ECM) 

(CEA Sections 2(h)(3)-(5)) 

(CE

Types of Transactions: Futures 

and options (Note: DCMs are restricted from listing products outside CFTC jurisdiction (e.g., 

CME cash butter market) 

Types of Transactions: Futures 

and options 

Types of transactions: Derivatives, including swaps, futures and options (Note: ECMs often also trade products outside CFTC jurisdiction, including spot and forward contracts) 

Types oDerivatfutures 

Standardized Products?: Yes Standardized Products?: Yes Standardized Products?: Yes 

Terms set by the entity. 

Standar

Usually dealer mexecute

Cleared?: Transactions must be cleared through a DCO approved by the CFTC 

Cleared?: Clearing is not mandatory; if clearing is offered, it must be through a DCO 

Cleared?: Clearing not mandatory; if offered, it must be through an SEC-registered clearing agency, an acceptable foreign clearing agency or a DCO (many ICE transactions are cleared at LCH; other ECMs offer clearing at NYMEX Clearport or The Clearing Corp.) 

Clearedcontracclear tra

Estimated Volume: For 2006 – futures: 2,043,897,218 contracts; options: 501,549,640 contracts 

Estimated Volume: No DTEFs are 

currently registered 

Estimated Volume: ECMs are not 

required to submit overall volume data 

Estimat

unknow

Transaction Prohibitions: Subject 

to all provisions of the CEA 

Transaction Prohibitions: Subject to major CEA provisions (e.g., anti-manipulation), but generally more limited requirements than DCM transactions (e.g., more permissive with respect to noncompetitive trading) 

Transaction Prohibitions: Only 

anti-manipulation and antifraud 

Transac

anti-ma(but anttransact
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DCM 

(CEA Section 5) 

Commercial DTEF 

(CEA Section 5a) 

Exempt Commercial 

 Market (ECM) 

(CEA Sections 2(h)(3)-(5)) 

(CE

Self-regulatory responsibilities: 

Yes, significant self-regulatory responsibilities; must comply on an ongoing basis with the eight designation criteria and eighteen core principles. Must have compliance and surveillance programs. 

Self-regulatory responsibilities: Yes, various self-regulatory responsibilities; must comply on an ongoing basis with four registration criteria and nine core principles. Generally, less comprehensive than DCMs (e.g.,

only publicize data regarding price discovery contracts, less rigorous governance standards). Must have compliance and surveillance programs. 

Self-Regulatory Responsibilities: 

Minimal and they include nothing that goes to the integrity of trading. Responsibilities include: a reporting requirement for contracts over a minimum volume threshold; ensuring compliance with exemption conditions; and dissemination of contract activity information for “price discovery” contracts. 

Self-ReNone 

Responsibilities to CFTC: Comply with designation criteria and core principles 

Responsibilities to CFTC: 

Comply with registration criteria and core principles 

Responsibilities to CFTC: Provide 

notice of operation and weekly transaction data for high-volume contracts; report manipulation and fraud complaints; maintain and providing access to records of activity 

Respon

CFTC Oversight Authority: Unlimited, including continuous and ongoing market surveillance and trade practice programs, ability to intervene in markets (e.g., force reduction/liquidation of positions, alter/supplement DCM rules). CFTC receives large trader reports transaction data and assesses DCMs’ compliance programs via rule enforcement reviews.

CFTC Oversight Authority: Unlimited, but Commission may use its discretion to scale its market surveillance and trade practice programs based on circumstances of the particular DTEF. CFTC receives large trader reports transaction data and assesses DTEFs’ compliance programs via rule enforcement reviews. 

CFTC Oversight Authority: 

Limited (special calls); § 8a(9) emergency authority does not apply 

CFTC O None