Commodity Futures Trading Commission

In order to protect customers, the Commodity Futures Trading Commission requires:

1. Market participants are required to disclose market risk and provide customers with information on the results of their previous activities.
2. Market participants and their customers must hold funds in different accounts (segregated capital).
3. At the close of each trading day, customer accounts must be adjusted so that they show the current value of the investment (cleaning procedure) ^[3] .

Agricultural futures in the US have been trading for over 150 years. Since 1920, this trade has been subject to federal regulation ^[4] .

Since the 1970s, futures trading has spread to foreign currency and financial instruments, US and foreign securities and stock indices ^[5] .

The mandate of the Commission has since been renewed, and the terms of reference have been expanded several times. The latter is in accordance with the Wall Street Reform and Consumer Protection Act .

1970s

• 1974 - On October 23-24, Congress passed a law on the Commodity Futures Trading Commission. The law was signed by President Gerald Ford . The Commission received wider powers than its predecessor, the Commodity Exchange Authority .
• 1975 - April 15, the first five members of the Commission took the oath.
• 1975 - July 18, the Commission authorizes exchanges to continue trading futures contracts for a number of goods that have not previously been covered by the Commodity Exchange Act. In fact, this meant that all goods that were actively traded in futures contracts were subject to federal regulation.
• 1975 - the first futures contract for a financial instrument was approved ^[6] .

1980s

1990s

2000–2013

• 2000 - The Law on the Modernization of Commodity Futures. Commission's First Law Regarding Retail FOREX . Its adoption was caused by the expansion of the market, which, thanks to the development of technology, began to include Asian, European and American time zones, and the rapid growth in the volume of transactions with foreign currencies, which in the 80s of the 20th century amounted to $ 70 billion a day, and in 2000 - $ 2 trillion a day.

• 2005 - Law on the Renewal of Powers of the Commodity Futures Trading Commission. The law was passed in order to oblige FOREX retail brokers to comply with the minimum capital requirements. The new low was $ 20 million, four times the previous ^[7] .

The Commodity Futures Trading Commission includes five members. They are appointed for a five-year term by the President of the United States on the recommendation and with the approval of the US Senate . Of the five members appointed, the President is also elected by the President and approved by the Senate. At the same time, no more than three members of the Commission may be members of the same political party ^[6] .

Today the Commission includes:

• Gary Gensler, Chair

He took office on May 26, 2009;

• Jill E. Sommers

She took office on August 8, 2007;

• Bart Chilton

He took office on August 8, 2007;

• Scott D. O'Malia

Inaugurated on October 16, 2009;

• Mark P. Wetjen

He took office on October 25, 2011.

Departments

Clearing and Risk Supervision Department .

Department of Performance Control . Investigates violations of the Commodity Exchange Act and Commission instructions.

Department of Market Supervision . It ensures that derivatives markets truly reflect existing supply and demand and are free from destructive activities. He also evaluates the new tools to ensure that they will not be subject to manipulation, and also monitors the rules applied by exchanges to ensure that they comply with the basic principles.

Department of Supervision of Swap Dealers and Intermediaries .

Management

Office of the chief economist . The task of the department is the recommendations and support of the Commission in economic matters, research, training of the Commission staff. The department of the chief economist plays an important role in introducing new rules for regulating the financial market, providing economic expertise and explaining what these rules are based on.

Data management and technology . The department provides informational, technical, legal support to the work of the Commission, as well as the transparency of the work of this body. In addition, he provides the computer network, is responsible for communications, data storage and information infrastructure management.

Executive Director The Executive Director is responsible for the distribution of Commission resources, management and administration, and oversees Commission informants and consumer protection programs.

Legal department . Provides legal support to the Commission and its programs, including representation in litigations, legal advice on all matters related to the work of the Commission.

Inspector General . This is an independent unit whose task is to ensure that the work of the Commission is carried out in good faith, efficiently, within the budget.

Office of International Affairs . Advises the Commission on international regulatory initiatives, represents the Commission in international organizations, in particular, in the International Organization of Securities Commissions ; He is responsible for coordinating the Commission’s policies with G20 international initiatives, the Financial Stability Board and the US Department of the Treasury , as well as providing technical support to foreign regulators.

Office of Legislation . He is responsible for interacting with the US Congress, providing reports and other informational materials to congressmen. Tracks legislative initiatives that may affect the work of the Commission. Responsible for providing answers to voters' requests.

Office of Public Relations . Responsible for the Commission's interaction with the general public and the media.

• Chicago Options Exchange
• Chicago Board of Trade
• Chicago Mercantile Exchange
• Nadex
• US Futures Exchange
• Kansas City Chamber of Commerce ( Kansas City Board of Trade )
• Minneapolis Grain Exchange ( Minneapolis Grain Exchange )
• New York Mercantile Exchange
• New York Board of Trade
• OneChicago, The Single Stock Futures Exchange

• Michael Archer Trading in the foreign exchange market for beginners. - M .: Alpina Publisher , 2013 .-- 464 p. - ISBN 978-5-9614-4373-8 .

• Futures industry association
• National Futures Association
• Commitments of Traders
• Proposed and finalized federal regulations from the Commodity Futures Trading Commission