Most commodities that we commonly think of, such as wheat or corn futures, are traded on national exchanges. These types of investments, and the persons who sell them, are regulated by the Commodity Futures Trading Commission and the self-regulatory organization over which it has oversight, the National Futures Association.
In 1986 the Legislature adopted RCW 21.30, the Commodity Transactions Act (our version of the Model State Commodity Code), to regulate certain off-exchange transactions in commodities. Persons who deal in transactions that come under the Act are required to register as commodity broker-dealers.
The Act has been used primarily as an enforcement tool against out-of-state telephone boiler rooms pitching bogus precious metal and metal ore investments.
It has been several years since anyone has been registered as a commodities broker-dealer.