CFTC - Commodity Futures Trading Commission

The Commodity Futures Trading CommissionThe Commodity Futures Trading Commission (abbreviation CFTC) was established by the American Congress in 1974. It was created as a fully independent agency for the purpose of regulation of option markets and commodity futures in the USA. During the last 40 years CFTC's mandate has been updated and modified several times (the most significant changes were implemented by the Commodity Futures Modernization Act of 2000).

As for today, the CFTC exists to guarantee the economic utility of the regulated financial markets by promoting their efficient performance and competitiveness on the international scene. CFTC protects the market participants against fraudulent dealers, dishonest trading activities and manipulation, ensures the financial integrity of the clearing process; the agency also supports and facilitates the Anti-money laundering in any possible way. The CFTC makes futures markets able to provide a means for offsetting risk of price and price discovery.

Taking into account the fact that CFTC is acknowledged as one of the most reputable and familiar state established regulation authorities in the world, being regulated by this organization should definitely be considered as a privilege. Acting under regulation of the CFTC is a good sign of quality for most international brokers.

CFTC Structure

The Commodity Futures Trading Commission consists of 5 members who are assigned by the United States President, with the Senate’s advice and after getting their consent. All the commissioners are appointed for the serve term of five-years. With the Senate’s consent, the US President appoints one of the commissioners to serve as the CFTC Chairman. For the purpose of equity, not more than 3 commissioners from the same political party are allowed to be designated for the CFTC membership.

The Chairman’s Offices include

  • the Office of External Affairs which acts as the CFTC's informational representative (liaison) that provides information about the CFTC through different sources and activities and heads the customer protection section;
  • the Secretariat Office which is involved in preparation and dissemination of policy papers and processes the requests submitted under the Freedom of Information Act;
  • the Office of International Affairs which controls the global regulatory efforts of the Commission and supports the CFTC in its international policy formulation;
  • the Office of the Inspector General that provides audits of CFTC operations and programs and also reviews regulations and legislation;
  • the Office of Equal Employment Opportunity.

Except the Chairman’s Offices CFTC structure also distinguish 5 Commissions Advisory Committees which were formed for recommendation purposes and to facilitate communication between the U.S. trading companies and brokers and the Commission. All the CFTC Committees are acting under the guidelines of the Federal Advisory Committee Act.

View CFTC Organization page for more details on the Commission Structure.

Short Summary on CFTC

Brokers and other trading or investment institutions regulated by CFTC are mostly trusted and responsible companies which guarantee their customers proper and qualified services. Dealing with firms which act under the guidance of the Commodity Futures Trading Commission is preferred by most American and many European traders and investors.

CFTC website: http://www.cftc.gov/

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