Derivatives Transaction Execution Facility - DTEF

DEFINITION of 'Derivatives Transaction Execution Facility - DTEF'

A market that supports the transaction of derivatives on which the underlying commodities are limited to excluded commodities or assets with an inexhaustible, deliverable supply. A derivatives transaction execution facility allows for the transaction of commodities with no cash market; however, all products listed on the exchange must not be susceptible to manipulation. DTEFs must be registered with the Commodity Futures Trading Commission, which grants them fewer regulatory requirements than other contract markets.

BREAKING DOWN 'Derivatives Transaction Execution Facility - DTEF'

Derivatives transaction execution facilities are not open to retail investors. To trade on this exchange, an investor must belong to an eligible commercial entity, be an eligible contract participant or transact through a futures commission merchant. DTEFs provide a venue for the trading of excluded commodities, such as interest or exchange rates and other derivatives.

RELATED TERMS
  1. Excluded Commodity

    A commodity that is not susceptible to measures of influence ...
  2. Exempt Commodity

    Any commodity other than an excluded or agricultural commodity. ...
  3. Eligible Contract Participant

    A group or individual allowed to engage in financial transactions ...
  4. Derivative Product Company - DPC

    A special-purpose entity created to be a counter-party to financial ...
  5. Exchange Traded Derivative

    A financial instrument whose value is based on the value of another ...
  6. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash ...
Related Articles
  1. Professionals

    What is a Derivative?

    CFA Level 1 - What is a Derivative?. Learn the basicas of derivative instruments. Covers various types of options, swaps and differentiates exchange and over-the-counter trades.
  2. Investing Basics

    How To Invest In Commodities

    Find out which futures, options or funds will be your perfect commodity portfolio fit.
  3. Professionals

    Commodities as Alternative Investments

    CFA Level 1 - Commodities as Alternative Investments. Learn the types of commodity investment opportunities and how they can help hedge against inflation. Covers passive and active investing ...
  4. Professionals

    Purposes and Benefits of Derivatives

    CFA Level 1 - Purposes and Benefits of Derivatives. Learn the purposes and benefits of derivatives. Discusses how derivatives can yield profits and be used as a tool for risk management.
  5. Investing Basics

    Understanding the Commodity Market

    There are currently 50 physical and virtual commodity markets worldwide where almost 100 primary commodities trade through the exchange of ownership rights.
  6. Investing Basics

    When Will it Be Safe to Buy Commodities?

    When will it be safe to buy commodities (and which ones)? A closer look at the commodities markets and how they move.
  7. Investing

    What Is A Derivative?

    A derivative is a security whose price is dependent upon or derived from one or more underlying assets. Learn more on how investors can use this financial instrument in their trading strategies.
  8. Options & Futures

    Derivatives 101

    A derivative investment is one in which the investor does not own the underlying asset, but instead bets on the asset’s price movement with another party.
  9. Options & Futures

    Futures, Derivatives and Liquidity: More or Less Risky?

    Futures and derivatives get a bad rap after the 2008 financial crisis, but these instruments are meant to mitigate market risk.
  10. Professionals

    Criticisms of Derivatives

    CFA Level 1 - Criticisms of Derivatives. Discusses types of criticisms facing derivatives. Offers contrasting opinions on the use of derivatives and their role in the market place.
RELATED FAQS
  1. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Answer >>
  2. What expiry months are typically available for derivatives?

    Discover more about the derivatives market and learn about the varying expiration months for derivatives in different financial ... Read Answer >>
  3. What kinds of derivatives are traded on an exchange?

    Learn about the different types of derivatives traded on exchanges, including options and futures contracts, and discover ... Read Answer >>
  4. Who sets the price of commodities?

    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities ... Read Answer >>
  5. How big is the derivatives market?

    Examine the potential size of the total derivatives market, and learn how different calculations can reduce the estimate ... Read Answer >>
  6. How is the price of a derivative determined?

    Learn how different types of derivatives are priced, including how futures contracts are valued and the Black-Scholes option ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center