Commodity Futures Trading Commission (CFTC)

Commodity Futures Trading Commission (CFTC) is a US-based agency responsible for controlling the derivatives markets, which incorporates options, swaps, and futures contracts. It was established in 1974 as an independent organization that took the obligations of its first regulatory agency named Commodity Exchange Authority (CEA).
In the past, futures contracts were commonly traded with regards to agricultural commodities. That is one reason the CEA was part of the United States Department of Agriculture (USDA). In any case, the futures industry turned out to be progressively complex and presently presents a wide assortment of contracts.
The expressed missions and obligations of the CFTC is to guarantee that the US derivatives markets are operating proficiently:
"The mission of the Commodity Futures Trading Commission (CFTC) is to foster open, transparent, competitive, and monetarily sound markets. By working to stay away from systemic risk, the Commission expects to safeguard market users and their funds, consumers, and the public from fraud, manipulation, and abusive practices connected with derivatives and different products that are subject to the Commodity Exchange Act (CEA)"
Albeit zeroed in on various industry sectors, the CFTC shares common objectives with the Securities Exchange Commission (SEC). The two agencies are working to forestall market manipulation and fraudulent activities, including Ponzi and pyramid schemes. As part of their strategy, the supposed whistleblower programs reward residents that give important data about fraudulent activities. The CFTC Whistleblower program granted more than $85 million starting around 2014.
After the monetary crisis of 2008, Barack Obama approved the Dodd-Frank Wall Street Reform and Consumer Protection Act, which conceded the CFTC and SEC increased authority, particularly over large derivatives traders.
At present, the CFTC counts with eight major operating units:

• Division of Swap Dealer and Intermediary Oversight
• Division of Clearing and Risk
• Division of Market Oversight
• Division of Enforcement
• Office of Chief Economist
• Office of the General Counsel
• Office of the Executive Director
• Office of the Whistleblower

Features

• Throughout the long term, the job of controlling the futures and options markets has become more complex, particularly with the approach of fintech and digital currencies, for example, bitcoin.
• The Commodity Exchange Act lays out the statutory system under which the CFTC works.
• The commission's job is to control the derivatives markets in the United States.
• The Commodity Futures Trading Commission was laid out in 1974 when most futures trading occurred in the agricultural sector.
• The CFTC is comprised of 13 different operating divisions and offices.