Would you blow the whistle?Take our Quiz
The Commodity Futures Trading Commission, or CFTC, regulates the futures markets, the options markets, and the swaps trading markets, as well as the actors in those markets, with the mission of fostering “open, transparent, competitive, and financially sound markets” to avoid systemic risk and protect market participants.
The CFTC derives its authority from just one piece of legislation, the Commodity Exchange Act (“CEA”).
The CEA gives the CFTC regulatory authority over the commodity futures markets. These long-standing markets began with trading in agricultural commodities such as wheat, corn, and cotton, and futures in those markets.
Over time, these “designated contract markets,” or “DCMs” have grown to include those for metals commodities such copper, gold, and silver, for fuel commodities such as crude oil, heating oil, gasoline, and also for financial products such as interest rates, stock indexes, and foreign currency.
Following the 2008 financial crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act explicitly vested the CFTC with jurisdiction over swaps market.
The CFTC regulates a number of different actors and entities, including:
The CFTC exercises its authority in a number of ways, including:
Under the CEA, it is unlawful to:
Some financial products are potentially subject to regulation by both the CFTC and SEC. This includes single-securities futures and Bitcoin and other cryptocurrencies.
If you believe you have information about fraud which may lead to a CFTC enforcement action or claim under the CFTC whistleblower reward program, contact our firm to speak with a whistleblower lawyer.