Futures contracts are indeed traded on regulated markets. This is one of the key differences between futures and forward contracts. Futures contracts are standardized contracts that are traded on organized exchanges. These exchanges act as intermediaries between the buyer and the seller, and they provide a regulated and transparent environment for trading. The exchanges also provide clearing and settlement services, reducing the risk of default by either party. The standardization of futures contracts includes details such as the quantity and quality of the underlying asset, and the date and location of delivery. This standardization facilitates liquidity and allows the contracts to be traded on the exchange. On the other hand, forward contracts are private agreements between two parties and are not traded on an exchange. They are customized to the needs of the parties involved, and as such, they are not as liquid as futures contracts. The lack of a regulated market for forward contracts also means that they carry a higher counterparty risk compared to futures contracts.

Choice A is incorrect. While it's true that futures contracts can be cash-settled, this is not a distinguishing factor between futures and forwards. Both types of contracts can be settled either in cash or by physical delivery of the underlying asset.

Choice B is incorrect. The statement that the value of a futures contract is derived from its underlying asset applies to both futures and forward contracts, not just futures. Therefore, this does not serve as a distinguishing factor between the two.

Choice C is incorrect. Forward contracts do not necessarily require physical assets for settlement; they can also be cash-settled. Hence, this statement does not accurately distinguish forward contracts from futures contracts.