What is the Commodity Futures Trading Commission (colloquially known as the CFTC)?
The Commodity Futures Trading Commission (colloquially, CFTC) is an independent U.S. federal agency that was established under the Commodity Futures Trading Commission Act of 1974. The CFTC regulates the futures market (a.k.a. the derivatives market).
What does the CFTC do?
The goal of the Commodity Futures Trading Commission is to promote a competitive and efficient futures market and to protect investors from manipulation, trade abuse and fraud.
What bodies make up the CFTC?
The CFTC is composed of 5 commissions. Each is headed by a commissioner who is appointed by the President of the United States and then approved by the US Senate.
The individual committees focus on one of the following issues:
- agriculture,
- global market,
- energy and environmental markets,
- technology,
- an area of cooperation between the CFTC and the SEC (United States Securities and Exchange Commission ).
The committee is made up of people representing the interests of individual industries, traders, the futures market, the commodity market, consumers and the environment.
What role does the CFTC play in today’s digital world?
Contemporary challenges facing the Commodity Futures Trading Commission agency are related to the emergence of new products financial (FinTech) and cryptocurrencies.
According to CFTC representatives, FinTech is driving innovation in financial markets around the world, as it prompts the largest and smallest players to adopt innovative solutions ranging from cloud computing to the use of artificial intelligence (AI).
The CFTC is aware of the changes taking place, so it wants to play an active role in promoting and overseeing the ever progressing innovations.
What is the CFTC responsible for?
The Commodity Futures Trading Commission agency performs an important function in regulating financial markets. The CFTC and the rules it implements provide greater certainty and a sense of security to capital market participants who would otherwise be more vulnerable to fraud by unscrupulous individuals.
