What are the main provisions in the amended Commodity Exchange Act of 1974?

The amended Commodity Exchange Act of 1974 includes provisions that significantly enhance the regulatory framework governing commodity pool operators (CPOs) and commodity trading advisors (CTAs). By requiring these entities to register with the Commodity Futures Trading Commission (CFTC), the amendment strengthens oversight and ensures a higher standard of accountability in the commodities and futures markets.

Requiring registration means that CPOs and CTAs must comply with regulatory standards that include maintaining accurate records, which are essential for transparency and proper oversight of investment activities. This is critical in safeguarding the interests of investors and the integrity of the markets. The standards for record-keeping are stipulated to ensure that CPOs and CTAs maintain thorough documentation of their trading practices and financial activities, which allows the CFTC to monitor compliance effectively.

The other choices do not accurately reflect the specific provisions of the amended Commodity Exchange Act. Financial reporting by the SEC is not a primary focus of this Act, as it is more concerned with the oversight of commodities rather than securities. Additionally, the CFTC does not regulate the securities market; its primary jurisdiction lies in the regulation of commodity futures and options markets. Finally, eliminating the need for financial disclosures from investment managers contradicts the goals of increasing transparency and accountability in financial