The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government that regulates futures and option markets. It is responsible for protecting market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options.
The Commodity Futures Trading Commission (CFTC) is an independent federal agency that regulates the commodity futures and options markets in the United States. The CFTC was established in 1974 by the Commodity Futures Trading Commission Act (CFTCA) to protect market participants from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options. The CFTC is responsible for monitoring and enforcing the rules and regulations of the futures and options markets, as well as for providing oversight of the activities of the exchanges, clearinghouses, and other intermediaries.
The CFTC is composed of five commissioners, appointed by the President and confirmed by the Senate, who serve staggered five-year terms. The Commission is headed by a Chairman, who is appointed by the President and confirmed by the Senate. The Chairman is responsible for the day-to-day operations of the Commission and for setting the agenda for the Commission’s meetings. The other four commissioners are appointed by the President and confirmed by the Senate.
The CFTC is responsible for the oversight of the futures and options markets, including the exchanges, clearinghouses, and other intermediaries. The CFTC is also responsible for the enforcement of the Commodity Exchange Act (CEA), which is the primary law governing the futures and options markets. The CEA prohibits fraud, manipulation, and other abusive practices in the futures and options markets. The CFTC also has the authority to issue regulations and orders to ensure that the markets are fair and orderly.
The CFTC also has the authority to investigate and prosecute violations of the CEA. The CFTC has the authority to impose civil and criminal penalties on those who violate the CEA. The CFTC also has the authority to issue cease and desist orders to stop violations of the CEA.
The CFTC also has the authority to issue advisory opinions and interpretive guidance to help market participants understand their obligations under the CEA. The CFTC also has the authority to issue rules and regulations to ensure that the markets are fair and orderly. The CFTC also has the authority to conduct investigations and hearings to determine whether violations of the CEA have occurred.
The CFTC is also responsible for the oversight of the derivatives markets, including the swaps and security-based swaps markets. The CFTC is responsible for the enforcement of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which is the primary law governing the derivatives markets. The CFTC also has the authority to issue regulations and orders to ensure that the derivatives markets are fair and orderly.