In light of the Commodity Futures Modernization Act’s clarification of the CFTC’s jurisdiction over retail foreign currency trading, the CFTC issues an advisory and a revised consumer alert addressing the offering of foreign currency tradin opportunities to the retail public. The advisory explains how firms may lawfully offer foreign currency trading opportunities and the consumer alert warns the public of the risks of foreign currency trading and of foreign currency scams.

President Clinton signs into law the Commodity Futures Modernization Act of 2000, which, among other things, reauthorizes the Commission for five years, overhauls the Commodity Exchange Act to create a flexible structure for the regulation of futures and options trading, clarifies Commission jurisdiction over certain retail foreign currency transactions, and repeals the 18-year-old ban on the trading of single stock futures. On the same day, the CFTC withdraws most of the New Regulatory Framework; however, the amendments to Regulation 1.25 concerning investment of customer funds by futures commission merchants and derivatives clearing organizations are made effective immediately with some technical corrections. The amendments permit investment of customer funds in new types of instruments, such as money market mutual fund

The CFTC approves rules implementing the New Regulatory Framework. These rules are later superseded by passage of the Commodity Futures Modernization Act of 2000 and most new rules were subsequently withdrawn.