The CFTC - Commodity Futures Trading Commission, is an independent US federal agency. It's mission is to promote open, fair and financially healthy markets.
The Commodity Futures Trading Commission is an independent US federal agency, it was established by the Commodity Futures Trading Commission Act of 1974.
The CFTC comprises of the Commissioners, the offices of the Chairman, and the agency’s operating departments. Specifically, the Commission includes five Commissioners appointed by US President. Moreover, the President assigns one of the Commissioners to act as Chairman. CFTC’s divisions include:
- Clearing and Risk (DCR)
- Enforcement (DOE)
- Market Oversight (DMO)
- Swap Dealer and Intermediary Oversight (DSIO)
What are the tasks and duties of the CFTC?
The mission of the regulatory body is to promote open, fair, competitive and financially healthy markets. Moreover, CFTC strives to avoid systemic risk and to safeguard the market participants and their assets, and consumers. Additionally, the watchdog works to protect the public from fraud, manipulation, and abusive practices related to derivatives and other products that are subject to the Commodity Exchange Act.
In its attempt to oversee the US financial market, CFTC promotes market integrity. It also monitors derivatives markets for various violations and works to assure the protection of customer assets. Moreover, the agency tries to diminish the risk of the futures and swaps market to the economy and to public as a whole. In order to attain such objectives, CFTC constantly supervises contract markets, swap execution entities, derivatives clearing organizations, swap dealers, swap data repositories, commodity pool operators, futures commission merchants and other entities.
History of Commodity Futures Trading Commission
The CFTC takes its roots from the Department of Agriculture, which was existing back in 1920s. Moreover, the Commission historically has been granted with regulatory authority over the commodity futures markets by the Commodity Exchange Act (CEA). As time passed, the Commission’s authority spread to other markets. For a full overview of the regulator’s history, we recommend you to visit their website to see the CFTC’s history timeline.
Now, the agency oversees Energy and metals commodities. Such as crude oil, heating oil, gasoline, copper, gold and silver. Moreover the regulatory body oversees the Contracts on financial products such as interest rates, stock indexes and foreign currency.