What Is the Commodity Futures Trading Commission?
The Commodity Futures Trading Commission (CFTC) is an impartial U.S. Federal enterprise installed with the aid of the Commodity Futures Trading Commission Act of 1974.
The Commodity Futures Trading Commission regulates the commodity futures and alternatives markets.
Its desires comprise the advertising of competitive and green futures markets and the safety of buyers towards manipulation, abusive alternate practices, and fraud.
Understanding the Commodity Futures Trading Commission
The CFTC has 5 committees, each headed via a commissioner who appointed through the president and approved by the Senate.
These five committees consciousness on agriculture, international markets, energy and environmental markets, ERA, and cooperation among the CFTC and SEC
It populates the committees with the aid of people who represent the pursuits of specific industries, traders, futures exchanges, commodities exchanges, purchasers and the surroundings.
The Commodity Exchange Act (CEA) regulates the trading of commodity futures inside the United States. Passed in 1936 and amended several times given that, the CEA establishes the statutory framework under which the CFTC operates.
Act, the CFTC has authority to establish regulations which published in Title 17, Chapter I, of the Code of Federal Regulations (CFR).
New Challenges for the Commodity Futures Trading Commission
The CFTC is shifting far from its ancient function as the regulator of traditional commodity merchandise-associated futures and options contracts to face new challenges inside the digital age of the twenty-first century.
A new challenge going through the CFTC is for a new monetary era (FinTech) products and crypto-currencies like Bitcoin, which had a Bitcoin futures settlement released in late 2017 that trades with the CME Group.
The CFTC says that FinTech is using innovation in financial markets across the globe.
New technology is wide ranging in scope, from cloud computing and algorithmic trading to allotted ledgers to synthetic intelligence and machine learning to network cartography and many others.
These technologies have the potential for enormous or maybe transformational effect on CFTC-regulated markets and the agency itself. The CFTC plans to play an energetic role within the oversight of this rising innovation.
The CFTC performs a crucial role in regulating financial markets. Without such regulation and regulators, it could subject marketplace contributors to fraud through unscrupulous individuals and, in a flip, lose religion in our capital markets.
This should make capital markets ineffective at efficiently allocating economic assets to the most deserving way of production and efficient monetary sports to the detriment of buyers, clients and society.
Time will show if the employer is up to the brand new challenges it faces.
What Is the Securities and Futures Commission?
The Securities and Futures Commission (SFC) is a non-governmental statutory frame accountable for regulating Hong Kong’s securities and futures markets.
The SFC changed into mounted by using the Securities and Futures Commission Ordinance (SFCO).
The commission is independent and not below the purview of the Government of the Hong Kong Special Administrative Region. It funded by licensing costs and transaction levies.
The SFC administers the legal guidelines governing Hong Kong’s securities and futures markets and enables the development of those markets.
The SFC’s statutory objectives are to hold and promote fairness, performance, competitiveness, and transparency inside the securities and futures markets.
Sell public expertise of making an investment and company finance policy; shield traders with the aid of implementing rules; lessen crime and misconduct and decrease the dangers to Hong Kong’s monetary balance.
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