Trading of commodities at exchanges doubled between 2001 and 2005, according to International Financial Services London, an industry group.
The business provides clearing and execution services for futures and options trading of commodities, equities and other financial instruments.
The proposal has exceptions for currency trading and the physical trading of commodities, but not for derivatives like currency or commodity futures contracts.
ICE and NYSE Euronext have little overlap: the former focuses on the trading of commodities like energy products, the latter on stocks and derivatives.
"Enron did pioneer a lot of concepts that will be here with us for a long time to come — the trading of commodities that had never been traded before," said James Chanos, a hedge-fund manager.
Violations of the Commodities Exchange Act, which prohibits manipulation and fraud in the trading of commodities, as well as the Securities Act, which prohibits fraud in the purchase and sale of securities, may be crimes, as is mail and wire fraud, commodities fraud and conspiracy.
A continuous double auction (CDA) is an efficient market institution for real-world trading of commodities and electronic marketplaces.
The segment also includes the trading of commodities, foreign exchange, and public debt, and services provided by Banco BM&F and the Brazilian Commodities Exchange.
One of the most significant differences between proto-globalization and archaic globalization was the switch from inter-nation trading of rarities to the trading of commodities.
