Statute Details
- Title: Commodity Futures (Coffee) Order
- Act Code: CTA1992-OR1
- Legislative Type: Subsidiary legislation (SL)
- Authorising Act: Commodity Futures Act (Chapter 48A, Section 2)
- Commencement / Citation Details: G.N. No. S 65/1995; Revised Edition 1996 (1 March 1995)
- Status: Current version as at 27 Mar 2026
- Key Provisions (from extract): Section 1 (Citation); Section 2 (Prescribed commodity: coffee)
- Parts: Not applicable (Order is short and contains only the core provisions shown)
What Is This Legislation About?
The Commodity Futures (Coffee) Order is a short piece of Singapore subsidiary legislation made under the Commodity Futures Act. In practical terms, it performs a single regulatory function: it designates coffee as a prescribed commodity for the purposes of the Commodity Futures Act.
Singapore’s commodity futures regulatory framework is designed to govern trading in futures contracts and related activities, including licensing and oversight of market participants and the handling of risks associated with derivatives trading. However, the Commodity Futures Act does not treat every imaginable good or product as automatically regulated. Instead, it relies on a definition of “commodity” and allows certain commodities to be prescribed by subsidiary legislation.
This Order therefore matters because it answers a threshold legal question: when a futures contract relates to coffee, does it fall within the statutory regime? By prescribing coffee, the Order ensures that coffee futures are treated as falling within the scope of the Act’s regulatory machinery.
What Are the Key Provisions?
Section 1 (Citation) provides the formal name by which the Order may be cited. While this is typically procedural, citation provisions are important for legal certainty—especially where practitioners need to reference the exact instrument in submissions, compliance documentation, or regulatory correspondence.
Section 2 (Prescribed commodity) is the substantive provision. It states that, for the purposes of the definition of “commodity” in section 2 of the Commodity Futures Act, coffee is prescribed as a commodity.
This single sentence has significant downstream effects. Once coffee is prescribed, any futures contract that is properly characterised as a futures contract in respect of coffee will be more likely to be treated as a contract within the meaning of the Act’s regulated “commodity” category. That, in turn, affects how market conduct rules, licensing requirements, and regulatory oversight apply to persons who trade, arrange, or otherwise deal in such contracts.
Although the extract shows only two provisions, the legal effect is not “minor.” In derivatives regulation, the scope-defining step—what counts as a “commodity”—is often the gatekeeper to the entire compliance regime. In practice, lawyers advising trading firms, brokers, or counterparties will use this Order to support arguments about whether a particular product is within the statutory definition and therefore whether the Act’s obligations are triggered.
How Is This Legislation Structured?
The Commodity Futures (Coffee) Order is structured as a very concise instrument. Based on the available text, it contains:
(1) Section 1: the citation provision.
(2) Section 2: the substantive prescription of coffee as a commodity for the purposes of the Commodity Futures Act.
There are no additional parts, schedules, definitions, or operational provisions shown in the extract. This is consistent with the role of many “prescription” orders: they are designed to be targeted and minimal, leaving the detailed regulatory obligations to the parent Act and any other subsidiary instruments.
Who Does This Legislation Apply To?
This Order applies indirectly to a broad set of market participants, even though it does not name them. The Order’s effect is to determine that coffee is within the regulatory category of “commodity” under the Commodity Futures Act. Therefore, it is relevant to:
Market intermediaries and service providers (such as brokers, dealing representatives, and other persons who may be subject to licensing or conduct requirements under the Act), and trading counterparties who enter into futures contracts referencing coffee.
Additionally, it is relevant to compliance and legal teams at firms that trade commodity derivatives. When assessing product scope—whether a contract is regulated, whether certain approvals are required, or whether specific statutory duties apply—practitioners will treat this Order as a key authority.
Why Is This Legislation Important?
Even though the Commodity Futures (Coffee) Order is brief, it is important because it clarifies the regulatory perimeter of Singapore’s commodity futures regime. In derivatives law, the question “is this contract regulated?” often turns on whether the underlying asset is within the statutory definition of a commodity. By prescribing coffee, the Order ensures that coffee futures are not treated as outside the Act merely because coffee is a physical commodity rather than a financial instrument.
For practitioners, the Order is particularly useful in:
- Product classification: determining whether a coffee-linked futures contract falls within the Commodity Futures Act framework.
- Regulatory risk assessment: evaluating whether trading activity may require authorisation, whether certain conduct rules apply, and whether reporting or other statutory duties may be triggered.
- Contracting and dispute contexts: supporting arguments about the regulatory status of the contract, which can affect enforceability, compliance defences, and the interpretation of contractual obligations.
From an enforcement perspective, prescription orders like this one provide regulators with a clear legal basis to treat coffee futures as regulated commodity futures. This supports consistent oversight across commodity categories and reduces ambiguity for market participants.
Finally, the Order’s “current version” status as at 27 March 2026 indicates that coffee remains within the prescribed commodity list for the Act’s purposes. For ongoing compliance, firms should ensure they rely on the correct version of the instrument and confirm whether any amendments have occurred through the legislative timeline.
Related Legislation
- Commodity Futures Act (Chapter 48A), in particular section 2 (definition of “commodity”) and the power to prescribe commodities
Source Documents
This article provides an overview of the Commodity Futures (Coffee) Order for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.