U.S. Commodity Futures Trading Commission (CFTC)

Basic Information

The U.S. Commodity Futures Trading Commission (CFTC) is an independent federal agency established in 1974 to regulate derivatives markets, including futures, options, and swaps. Its official website (www.cftc.gov) serves as a primary resource for market participants, offering regulatory guidance, enforcement updates, and educational materials. The CFTC operates under the mandate to foster transparent, competitive, and financially sound markets while protecting investors from fraud and manipulation.

Historical Background

The CFTC was created by the Commodity Futures Trading Commission Act of 1974, replacing the Commodity Exchange Authority. Its formation responded to the rapid growth of financial derivatives in the 1970s, particularly agricultural futures. Key legislative milestones include the Commodity Futures Modernization Act (2000), which clarified its jurisdiction over swaps, and the Dodd-Frank Wall Street Reform Act (2010), which expanded its authority post-2008 financial crisis. Recent developments under Acting Chairman Rostin Behnam include enhanced crypto-asset oversight and climate risk initiatives.

Legal Authority & Regulatory Framework

The CFTC derives its authority from:

• Commodity Exchange Act (7 U.S.C. §1 et seq.)
• Dodd-Frank Wall Street Reform and Consumer Protection Act
• CEA Regulations (17 CFR Chapter I)

It oversees designated contract markets (DCMs), swap execution facilities (SEFs), and derivatives clearing organizations (DCOs). For forex regulation, the CFTC enforces retail foreign exchange dealer (RFED) compliance through capital requirements and transaction reporting under Regulation 5.

Core Responsibilities & Scope

The CFTC’s regulatory purview includes:

• Supervising derivatives clearinghouses and trading platforms
• Monitoring large trader positions to prevent market abuse
• Investigating market manipulation and fraud (e.g., spoofing, wash trades)
• Approving new derivative products through self-certification processes
• Maintaining oversight of crypto-asset derivatives markets

Notably, its 2023 enforcement actions recovered $4.3 billion in penalties, including landmark cases against binary options fraud and spoofing schemes.

Contact Information

Headquarters Address:
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, D.C. 20581
United States

Telephone: +1 (202) 418-5000
Whistleblower Hotline: +1 (866) 366-2382
Office of Customer Education: [email protected]

Regulatory Verification Process

To confirm an entity’s CFTC registration:

1. Access the National Futures Association (NFA) Background Affiliation Status Information Center (BASIC): nfa.futures.org/basicnet
2. Search by firm name or NFA ID
3. Verify “CFTC Registration” status and check for disciplinary history

All registered firms must maintain $20 million minimum adjusted net capital for RFEDs and $5 million for futures commission merchants (FCMs).