Legal and Financial Analysis of Market Manipulation Oversight and Control in Futures Contracts (A Comparative Study of Iranian and U.S. Regulations)

Abstract

Futures contracts, as one of the most important derivative instruments in financial markets, serve key functions such as risk hedging and price discovery. However, the structural characteristics of these instruments can provide a fertile ground for destructive behaviors such as market manipulation—an occurrence that leads to distortions in the pricing mechanism, weakens informational transparency, and diminishes public trust in the capital market. In certain jurisdictions, weaknesses in legislation and supervisory limitations have made it difficult to effectively counter such behaviors. This study aims to conduct a comparative legal analysis of the Iranian and United States systems concerning the supervision and control of market manipulation in futures contracts. The research method is descriptive–analytical, employing a comparative approach, and the sources include laws, regulations, supervisory practices, and official reports from the financial authorities of both countries. The findings indicate that the United States, through the use of comprehensive laws such as the Dodd–Frank Act, independent supervisory bodies such as the Commodity Futures Trading Commission (CFTC), and advanced regulatory technologies, has developed effective and deterrent mechanisms to control market manipulation. In contrast, the Iranian legal system faces challenges such as the absence of a comprehensive derivatives law, weak criminalization of manipulative acts, lack of advanced supervisory systems, and limited authority of the regulatory body.