U.S. Commodity Futures Trading Commission (CFTC) | USAGov (2024)

FAQs

What does the US Commodity Futures Trading Commission do? ›

The mission of the Commodity Futures Trading Commission is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation.

Trading of futures on single securities and futures on narrow-based security indexes, collectively called security futures products or SFPs, is jointly regulated by the CFTC and the Securities and Exchange Commission (SEC).

The Commodity Futures Trading Commission (CFTC) is the federal government agency that regulates the commodity futures and other commodity derivatives. By contrast, security futures are jointly regulated by the CFTC and the Securities and Exchange Commission (SEC).

The SEC and CFTC were created by different laws, have different responsibilities, and use different methods to fulfill those responsibilities. The most basic difference between the two entities is that the SEC regulates the securities market and the CFTC regulates the derivatives market.

The U.S. Commodity Futures Trading Commission (CFTC), which regulates the derivatives markets, including futures, swaps, and select options, has risen to the challenge, according to three former CFTC chairmen — J. Christopher Giancarlo, Heath Tarbert, and Timothy Massad.

Intermediaries are generally required to register with the CFTC. Associated Persons (APs) also must register and their principals must be listed. Floor Traders (FTs) are also required to register.

The Commission must authorize all enforcement actions, and the CFTC has the power to bring such actions either administratively (before administrative law judges or other appointed presiding officers) or in federal court.

CME, CBOT, NYMEX and COMEX are separate CFTC-registered and regulated Designated Contract Markets (DCMs) with self-regulatory responsibilities.

Each futures commission merchant (FCM) is required to maintain adjusted net capital of $1,000,000 or some greater amount as determined under CFTC Regulation 1.17(a)(1)(i).

Rostin Behnam was sworn in as the CFTC's 15th Chairman on January 4, 2022 after being unanimously confirmed by the U.S. Senate. President Biden nominated Chairman Behnam to lead the agency.

What is the difference between finra and CFTC? ›

The SEC is responsible for regulating securities markets and protecting investors, while the CFTC regulates commodity futures and options markets. FINRA is a self-regulatory organization that oversees broker-dealers and other financial firms, while the NFA regulates the futures industry.

Futures are a type of financial derivative in which you agree to buy or sell a certain asset at a certain price at a particular time in the future. Commodities are a type of asset representing fungible goods, such as oil, iron ore, or wheat. Commodities are usually traded using futures.

The Commodity Futures Trading Commission, the Federal regulatory agency for futures trading, was established by the Commodity Futures Trading Commission Act of 1974 (7 U.S.C.

Bitcoin is considered a commodity and is the underlying asset in bitcoin futures contracts. Bitcoins that sell for cash are said to trade on the “spot” market.

While digital assets and cryptocurrencies are not explicitly defined as “commodities” under the CEA, the CFTC expressed in a 2015 settlement order that Bitcoin and other virtual currencies are commodities and fall under its enforcement authority. This position was upheld by a U.S. District Court decision in 2018.

A commodity trading advisor (CTA) is an individual or organization that, for compensation or profit, advises others, directly or indirectly, as to the value of or the advisability of trading futures contracts, options on futures, retail off-exchange forex contracts or swaps.

The Forward Markets Commission (FMC) is the regulatory body for the commodity market and futures market in India. It is a division of the Securities and Exchange Board of India, Ministry of Finance, Government of India.

A commodity futures contract is an agreement to buy or sell a particular commodity at a future date. The price and the amount of the commodity are fixed at the time of the agreement. Most contracts contemplate that the agreement will be fulfilled by actual delivery of the commodity.

A commodities exchange determines and enforces rules and procedures for trading standardized commodity contracts and related investment products. It also refers to the physical center where trading takes place.