Generally speaking, foreign currency futures and options
contracts may be traded legally on an exchange or board of trade that has been
approved by the
CFTC.
Even where currency trading does not occur on a Commission-approved exchange or board of trade, the trading can be conducted legally where, generally speaking, one or both parties to the trading is (or is a regulated affiliate of) a bank, insurance company, registered securities broker-dealer, futures commission merchant or other financial institution, or is an individual or entity with a high net worth.
Where FOREX firms do not fall into the categories of
regulated entities outlined above and engage in foreign currency futures and
options transactions with or for retail customers who do not have a high net
worth, the
CFTC has
jurisdiction over those firms and their transactions.
