In a defeat for the Commodities Futures Trading Commission, the Supreme Court ruled Tuesday that options in foreign currencies and government securities are exempt from government oversight.

The decision clarifies the so-called 1974 Treasury Amendment. The commission claimed the amendment covered only futures, which are contracts to purchase foreign currencies or government securities at a set date. Banking and securities groups, however, said the amendment also applies to options, which give a party the right to buy products in the future.

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