A Guide to the Commodity Futures Trading Commission
What is the Commodity Futures Trading Commission?
The Commodity Futures Trading Commission is an independent agency of the United States government that is responsible for regulating the futures and option markets.
The Commodity Futures Trading Commission uses the Commodity Exchange Act, which prohibits fraudulent conduct in the trading of futures contracts, as its foundation for enforcing such rulings. In 1974, the United States Congress amended this act to create a more comprehensive regulatory framework for the trading of futures contracts; through this alteration, the Commodity Futures Trading Commission was created.
The stated mission of the Commodity Futures Trading Commission is to protect market users and the public from fraud, abusive practices and manipulation regarding the sales of financial futures, options and commodities. Furthermore, the Commodity Futures Trading Commission aims to enforce such rulings to foster open, competitive and a financially sound futures and options market
Mission of the Commodity Futures Trading Commission:
The United States Congress created the Commodity Futures Trading Commission as an independent agency responsible for mandating and regulating the commodity futures and option markets in the United States. The agency’s mandate, since its creation, has been expanded and renewed several times, most recently in 2000, when Congress passed the Commodity Futures Modernization Act of 2000, which instructed the Securities & Exchange Commission and the Commodity Futures Trading Commission to develop a joint regulatory regime for single-stock futures.
In present times, the Commodity Futures Trading Commission assures the economic utility of the futures markets by encouraging their competitiveness and efficiency, ensuring the market’s integrity and protecting market participants against abusive trading practices, fraud and market manipulation. Additionally, the Commodity Futures Trading Commission ensures financial integrity in the markets by delivering a sound clearing process.
Commodity Futures Trading Commission Quick Facts
The following details outline the administration of the Commodity Futures Trading Commission:
The Commodity Futures Trading Commission was formed on April 15th of 1975
The headquarters of the Commodity Futures Trading Commission are located at 1155 21st Street in Northwestern Washington, D.C.
The Commodity Futures Trading Commission operates with roughly 450 employees
The preceding agency of the Commodity Futures Trading Commission was the Commodity Exchange Authority
The Commodity Futures Trading Commission is responsible for the jurisdiction over the Commodities and Options Markets of the United States
The head of the Commodity Futures Trading Commission is Chairman Gary Gensler
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