Futures market regulation
The rapid pace of futures and options
trading on exchange floors created by hundreds
of traders actively participating in the determination
of prices is perhaps the activity closest
to classical perfect competition that can be observed
in our economy. A reality often lost on
the public, however, is that this trading is not
based on a pure laissez-faire doctrine; futures
markets have always been and will continue to
be subject to substantial regulation. This article
addresses some of the key institutional elements
and current regulatory concerns of the
futures and options (derivative instruments)
markets.