Futures markets are generally considered to be the closest real-world examples of the perfect competition model. Although futures prices are arrived at by the law of supply and demand, this does not imply that futures markets are unregulated. In fact, the US derivatives industry is highly regulated, and it is important to understand the various rules, regulations, and laws that govern futures trading and related activities. In this chapter we will look at how these markets are regulated, with a special emphasis on how the regulatory process affects market participants and the trading process.