Final answer:
Futures and forwards are not subject to SEC regulations, FDIC insurance, and blue-sky laws. They may be subject to margin requirements.
Step-by-step explanation:
Futures and forwards are not considered securities, which means they are not subject to SEC regulations. The SEC, or Securities and Exchange Commission, regulates securities, such as stocks and bonds, to protect investors from fraud and to ensure fair markets.
However, futures and forwards are often subject to margin requirements. Margin is the amount of money or collateral that must be deposited by a trader to cover potential losses on a trade.
In addition, futures and forwards are not covered by FDIC insurance, which is provided by the Federal Deposit Insurance Corporation to protect bank deposits. They are also not subject to blue-sky laws, which regulate the sale of securities at the state level.