Posted On 28.11.1964
Headquarters 1155 21st Street, NW, Washington, D. US wetjen bitcoin created in 1974, that regulates futures and option markets.
Futures contracts for agricultural commodities have been traded in the U. 150 years and have been under Federal regulation since the 1920s. Since the 1970s, trading in futures contracts has expanded rapidly beyond traditional physical and agricultural commodities into a vast array of financial instruments, including foreign currencies, U. Congress created the CFTC in 1974 as an independent agency with the mandate to regulate. The CFTC assures utility of the futures markets by encouraging their competitiveness and efficiency, ensuring their integrity, protecting market participants against manipulation, abusive trading practices, and fraud, and ensuring the financial integrity of the clearing process. In 1998 CFTC chairperson Brooksley E.
Two actions by the CFTC in 1998 led some market participants to express concerns that the CFTC might modify the “Swap Exemption” and attempt to impose new regulations on the swap market. In May 1998 the CFTC issued a ‘concept release’ requesting comment on whether regulation of OTC derivatives markets was appropriate and, if so, what form such regulation should take. Since 1991 the CFTC has given secret exemptions from hedging regulations to 19 major banks and market participants, allowing them to accumulate essentially unlimited positions. These exemptions came to light only after the 2008 financial crisis had unfolded and Congress requested information on market participants. In December 2007 during the subprime mortgage crisis, the CFTC began investigating transportation, storage and trading of U.
On June 25, 2008 Speaker Pelosi sent a letter to President Bush calling on him to direct the CFTC to use its emergency powers to take immediate action to curb excessive speculation in energy markets, to investigate all energy contracts and that despite growing reports of excessive speculation in energy markets, the CFTC refused to take actions they have taken in the past. In a campaign speech August 2008 presidential candidate Barack Obama argued that loopholes in CFTC regulations contributed to skyrocketing prices and lack of transparency on oil markets. 300 million apiece to the CFTC. In March 2014 the CFTC acknowledged it was considering the regulation of Bitcoin. The CFTC could treat Bitcoin transactions as swaps, futures, or spot transactions, otherwise Bitcoin would likely be a commodity under the CEA.
CFTC maintains regional offices in Chicago, New York and Kansas City, Missouri. The Commission consists of five Commissioners appointed by the President of the United States to serve staggered five-year terms. The Chairman’s staff has responsibility for providing information about the Commission, interacting with other entities and for the preparation and dissemination of Commission documents. Commission’s liaison with news media, producer and market user groups, educational groups, and the general public. OEA provides information about the regulatory mandate, the economic role of the futures markets, new market instruments, market regulation, enforcement actions, and customer protection initiatives.
The Division of Swap Dealer and Intermediary Oversight oversees the registration, compliance, and business conduct standards of intermediaries, swap dealers and major swap participants. The functions of the Division of Clearing and Intermediary Oversight include oversight of derivatives clearing organizations. The Division of Market Oversight has regulatory responsibility for initial recognition and continuing oversight of trade execution facilities, including new registered futures exchanges and derivatives transaction execution facilities. The Division of Enforcement investigates and prosecutes alleged violations of the Commodity Exchange Act and CFTC regulations. Violations may involve commodity futures or option trading on domestic commodity exchanges, or the improper marketing of commodity investments. The Division may, at the direction of the Commission, file complaints before the agency’s administrative law judges or in the U. The Office of the Chief Economist is an independent office with responsibility for providing expert economic advice to the Commission.
Its functions include policy analysis, economic research, expert testimony, education, and training. As of 2014 the office is held by Sayee Srinivasan. OGC staff represents the Commission in appellate litigation and certain trial-level cases, including bankruptcy proceedings which involve futures industry professionals. OED staff formulate the agency’s budget, supervise the allocation and use of agency resources, promote management controls and financial integrity, and develop and maintain the agency’s automated information systems. It is responsible for recording and monitoring the trading of futures contracts on United States futures exchanges. The CFTC publishes weekly reports containing details of holdings for market-segments, which have 20 or more reportable participants. The CFTC is authorized to regulate commodity pools and commodity trading advisors.