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Commodity Futures Trading Commission

A commission of the United States Government created in 1974 to regulate the market for futures contracts. It consists of five commissioners appointed by the President and confirmed by the Senate. Among other duties, the CFTC regulates the settlement of derivatives, oversees derivative exchanges, and sets and enforces rules on trading derivatives. It also works with the SEC to regulate futures contracts on single stocks. Futures traders and investment advisers must register with the CFTC as commodity trading advisers.
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Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Commodity Futures Trading Commission (CFTC).

The CFTC is the federal agency that regulates the US futures markets, as the Securities and Exchange Commission (SEC) regulates the securities markets.

The agency's five commissioners are appointed by the US president for staggered five-year terms.

The agency is responsible for maintaining fair and orderly markets, enforcing market regulations, and ensuring that customers have the information they need to make informed decisions.

Commodity exchanges also regulate themselves, but any changes they want to make must be approved by the CFTC before they go into effect.

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References in periodicals archive ?
"As this case shows, principles-based regulation does not mean lax oversight," said CFTC Chairman Heath P.
But firms now worry that breaking out the cost of the analysis for their European customers as required by the new rules will force them to register with the CFTC as CTAs.
CFTC. (16) Title VII grants the SEC the authority to regulate
The last award announced by the CFTC was in September 2015, for approximately $290,000.
"The CFTC will protect the US futures markets regardless of where those who engage in illegal spoofing practices are located."
The CFTC defines a "swap dealer" based on the swap-dealing activities in which it engages.
In its ongoing litigation, the CFTC is seeking preliminary and permanent injunctive relief, civil monetary penalties, and equitable relief including trading and registration bans and disgorgement.
Faced with high wheat prices starting in the summer of 2011, Kraft and Mondelez used a strategy to buy $90 million of wheat futures for delivery in December 2011, amounting to a six-month supply of wheat, the CFTC said.
The Commodity Futures Trading Commission (CFTC) is wary of banks invoking guarantees on foreign swap deals.
Global oil trading house Arcadia and two well-known traders will pay $13 million and face an unusual three-year limit on trading physical US benchmark crude to settle a landmark lawsuit over manipulating oil prices in 2008.The settlement, disclosed in a filing with the US District Court in Manhattan, concludes one of the Commodity Futures Trading Commission's crackdowns on gaming crude oil markets, launched in the wake of the 2008 surge in oil prices that sparked a political outcry.In 2011, the CFTC alleged that Arcadia, a global oil trading firm owned by Norwegian billionaire John Fredriksen, its US Parnon unit and oil traders James Dyer and Nick Wildgoose had made some $50 million by squeezing the oil market, losing money on physical trades in order to reap bigger profits on futures.
Testifying before the Senate Agriculture Committee, Massad also said he looked forward to listening to the concerns of commercial swaps end-users--agricultural concerns, for example --as CFTC moves to implement the more than 60 rules it has adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Obama is expected to use Massad's nominating ceremony to call on Congress to fully fund the CFTC, one of the smallest and most thinly funded U.S.