Commodity Futures Trading Commission (CFTC)

Understanding the Commodity Futures Trading Commission (CFTC)

The Commodity Futures Trading Commission (CFTC) is an independent federal regulatory agency responsible for overseeing and regulating the derivatives market in the United States.

This market encompasses futures contracts, swaps, and certain types of options.

The primary goal of the CFTC is to ensure the integrity, resilience, and transparency of these markets while preventing fraudulent activities.

From Agricultural Commodities to Global Markets

The CFTC was established in 1974 with the enactment of the Commodity Futures Trading Commissions Act.

Initially, futures trading primarily revolved around agricultural commodities.

Over time, the Commission expanded its jurisdiction to include foreign currencies, government securities, stock indices, and international markets.