Futures

Statute: § 551.22(15), Wis. Stats.

Used for: Any contract for the sale or purchase of a commodity for future delivery, if it is traded or executed on a contract market designated under 7 USC 7, which sets forth the futures markets designated by the Commodities Futures Trading Commission.

Filing requirement: Self-Executing. No filing or Consent to Service of Process is necessary in order to claim this exemption.

Frequently asked questions:

Q: Is the exemption self-executing?

    A: Yes. No filing or Consent to Service of Process is required.

Q: Can interests in commodity pools be offered and sold using this exemption?

    A: No. See Related Considerations, below.

Related Considerations: Securities Bulletin of April, 1982. The funding phase of the formation of a commodity pool may invoke jurisdiction of the Wisconsin Uniform Securities Law. The operational phase of the pool is in the exclusive jurisdiction of the CFTC. The pooling or combining of funds from various persons to conduct any business enterprise, including a commodity pool, can involve the offer or sale of investment contract securities, as defined by the "Howey" and "Risk Capital" analyses developed from federal and state case law and which have been specifically adopted by the Division of Securities in § DFI-Sec 1.02(6)(a) and (b), Wis. Adm. Code. The exemption set forth at § 551.22(15), Wis. Stats., is not available because the commodity pool interests are not themselves traded or executed on a contract futures market.

History: Adopted on January 1, 1970. There is no parallel section in the Uniform Securities Act.

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