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 These rules are later superseded by passage of the Commodity Futures Modernization Act of 2000 and most new rules were subsequently withdrawn.

The CFTC and Securities and Exchange Commission announce an agreement providing for joint jurisdiction over security futures products, that is, single stock futures and futures on narrow-based stock indices. Under the agreement, which will be incorporated into the Commodity Futures Modernization Act of 2000, the CFTC retains exclusive jurisdiction over futures contracts on broad-based stock indices

The Commission participates in the first annual international Internet Surf Day, organized by the International Organization of Securities Commissions (IOSCO), which targets futures and securities fraud and abuse on the Internet. This Surf Day includes the participation of approximately 220 individuals from 21 regulators in 18 countries. The second Surf Day takes place on April 23, 2001

The CFTC permits use of electronic signatures in lieu of handwritten signatures by customers of futures commission merchants, clients of commodity trading advisors, and commodity pool participants

February 22, 2000—The CFTC transmits to Congress a staff report, “A New Regulatory Framework,” which recommends changes to the CFTC’s regulatory structure. The report details changes that will lessen the regulatory burdens on U.S. futures markets by creating a more flexible regulatory framework. At the same time, the framework provides the over-the-counter (OTC) markets with greater legal certainty. Much of this framework will be incorporated into the Commodity Futures Modernization Act of 2000.