The Commodities Futures Trading Commission (CFTC) is an independent federal agency with the goal of protecting the public from negative practices and fraud related to the sales of commodities and financial futures and options. The organization helps grow and develop financially sound and competitive open options and futures markets. The CFTC works with the Securities and Exchange Commission (SEC) to regulate single-stock futures.

Headquartered in Washington, D.C., the CFTC also has offices in cities with futures exchanges – Kansas City, New York, and Chicago. Historically, mainly agricultural commodities futures were traded, however current futures now include stock, foreign currency, and government securities. The CFTC replaced the Commodity Exchange Authority and carries greater powers than the CEA once held. The commission is comprised of five appointed members who serve five-year terms. The U.S. president designates one member to act as chairman, with Senate consent. The major operating units of the CFTC include the Division of Clearing and Intermediary Oversight, Division of Market Oversight, and Division of Enforcement, along with the Office of the Chief Economist, the Office of General Counsel, and the Office of the Executive Director.

The CFTC is mandated to regulate commodities futures and options markets in the United States. The commission strives to protect those who participate in the market from fraud, abusive trading, or manipulation. It encourages competitiveness and efficiency, thereby protecting the economic utility of the futures markets. The CFTC provides oversight to the market. It enables the markets to function as a means for price discovery and for offsetting price risk. It also assures the financial integrity of the clearing process.

The Advisory Committees of the CFTC make recommendations to the commission on regulatory and market issues when those issues may affect the integrity of U.S. markets or their competitiveness. Commission regulations are available at Title 17 Chapter I of the Code of Federal Regulations (CFR) or at the U.S. GPO Access Web site at www.gpoaccess.gov. The CFTC has an international program that works to promote U.S. interests, assist foreign regulators in issues involving the U.S., and deal with the demands of complicated global financial markets. 

For more information, see:

--    U.S. Commodity Futures Trading Commission:                 http://www.cftc.gov/

--    Futures Industry Association:                                          http://www.futuresindustry.org/

--    National Futures Association:                                         http://www.nfa.futures.org/