What Is the Commodity Futures Trading Commission (CFTC)?
The Commodity Futures Trading Commission (CFTC) is an independent federal agency that regulates the trading of commodity futures and options contracts in the United States. The CFTC was established by Congress in 1974 to oversee the markets for these products, which are traded on exchanges such as the Chicago Mercantile Exchange (CME). The CFTC’s mission is to protect market users from fraud, manipulation, and abusive practices related to derivatives trading. It also works to ensure fair competition among participants in these markets.
The CFTC has a number of responsibilities including setting position limits on certain commodities; monitoring price movements; conducting investigations into potential violations of law or regulations; issuing orders against violators; providing educational materials about derivatives trading; and enforcing its rules through civil penalties or other means. In addition, it provides oversight over clearinghouses that process trades between buyers and sellers of futures contracts. By ensuring transparency and fairness within this complex marketplace, the CFTC helps maintain confidence in our financial system while protecting investors from fraudulent activities.