Commodity Futures Modernization Act - CFMA
An act passed in 2000 by the U.S Government that reaffirmed the authority of the Commodity Futures Trading Commission for five years as the regulatory body of the American futures markets. The most significant outcome from this act was the allowance for the trading of single stock futures.
Investopedia Commentary
Up until the CFMA was passed, it was illegal for traders to trade single stock futures even though they were being traded in other parts of the world. The amount of leverage provided by these financial instruments has given professional traders a new way to obtain exposure to the equity markets.
Related Links
Futures Fundamentals
Becoming Fluent in Options on Futures
See also: Commodity Futures Trading Commission, Futures Market, Leverage, Single Stock Future - SSF
Also spelled: modernization, modernization actCFMA