What are CFTC regulated futures?
The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974, that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options….Commodity Futures Trading Commission.
| Agency overview | |
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| Website | www.cftc.gov |
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How does the CFTC define a commodity?
Commodity: (1) A commodity, as defined in the Commodity Exchange Act, includes the agricultural commodities enumerated in Section 1a(4) of the Commodity Exchange Act, 7 USC 1a(4), and all other goods and articles, except onions as provided in Public Law 85-839 (7 USC 13-1), a 1958 law that banned futures trading in …
How are futures regulated?
In the U.S, the Commodity Futures Trading Commission (CFTC) regulates the nation’s futures and options markets. Its oversight protects market participants from fraud, manipulation and market abuse, and ensures the financial integrity of an exchange.
Who regulates futures trading in Canada?
In Ontario, Manitoba and Quebec, trading in and advising with respect to investing in futures are regulated under the Commodity Futures Acts in Ontario and Manitoba and the QDA in Quebec.
What is the purpose of the CFTC?
The Commodity Futures Trading Commission protects the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to fosters open, competitive, and financially sound futures and option markets.
What are the risks of trading futures?
Following are the risks associated with trading futures contracts:
- Leverage. One of the chief risks associated with futures trading comes from the inherent feature of leverage.
- Interest Rate Risk.
- Liquidity Risk.
- Settlement and Delivery Risk.
- Operational Risk.
Which swaps are regulated by CFTC?
The Commissions confirmed that foreign currency options (other than those traded on a national securities exchange), non-deliverable forward contracts involving foreign exchange, currency swaps, cross-currency swaps and forward rate agreements are swaps and subject to the CFTC jurisdiction.
Are futures regulated by the SEC?
Security futures are regulated both as securities and as future contracts, and must be traded on trading facilities and through intermediaries registered with both the SEC and CFTC. Security futures involve a high degree of risk and are not suitable for all investors.
Who regulates financial advisors in Canada?
Ensuring a financial advisor is registered and in good standing
- The Mutual Fund Dealers Association, which regulates firms and advisors that sell mutual funds;
- The Investment Industry Regulatory Association of Canada, which regulates firms and advisors that sell all types of securities, including mutual funds;
What is the’commodity futures trading commission-CFTC’?
What is the ‘Commodity Futures Trading Commission – CFTC’. The Commodity Futures Trading Commission (CFTC) is an independent U.S. federal agency established by the Commodity Futures Trading Commission Act of 1974. The Commodity Futures Trading Commission regulates the commodity futures and options markets.
What is the CFTC and how does it work?
When the CFTC was created in 1974 with the enactment of the Commodity Futures Trading Commission Act, most futures trading took place in the agricultural sector. Over the years, the futures industry has become increasingly varied and complex.
What is the rulemaking process at the CFTC?
Learn more about the Commission’s rulemaking process. The CFTC holds wrongdoers accountable by investigating and prosecuting violations of the CEA and Commission regulations. The CFTC publishes in the Federal Register publishes proposed rules, final rules, meeting announcements, and other notices.
Who is required to register with the CFTC?
Any intermediaries, entities that act as agents for other people when dealing with futures, swaps, and options, must register with the CFTC. These include commodity pool operators and advisors, futures commission merchants, introducing brokers, and swap dealers.