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Commodity Futures Trading Commission

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| org_name = Commodity Futures Trading Commission
| org_logo = [[Image:CFTCsealsmCFTC-New-Logo.gifpng]]
| foundation = 1974
| keypeople = [[Heath Tarbert]], Chairman| location = Three Lafayette Centre, 1155 21st Street, NW, Washington D, DC 20581[[File:CFTC_headquarters_map_in_washington_D.C..jpg|180px|Image: 180 pixels]]| facebook = cftcgov| twitter = cftc| youtube = CFTC| linkedin = commodity-futures-trading-commission
| products = Regulator
| homepage= []}}
The mission of the Commodity Futures Trading Commission (CFTC)<ref>{{cite web|name=U.S. Commodity Futures Trading Commission|url=|org=CFTC|date=December 28, 2007}}</ref> is to protect [[market]] users and the public from [[CFTC Fraud Advisories|fraud]], [[manipulation]], and abusive practices related to the sale of [[commodity]] and financial [[futures contract|futures]] and [[options]], and to foster open, competitive, and financially sound [[futures trading|futures]] and [[option]]s markets. On Dec. 17, 2008, President-elect [[Barack Obama]] named [[Gary Gensler]] to become the next CFTC chairman.<ref>{{cite web|url=|name=Obama picks Gary Gensler to head CFTC|org=Star Tribune|date=January 1, 2009}}</ref> On May 19, 2009, the U.S. Senate confirmed Gensler to head the CFTC.<ref>{{cite webCommodity Futures Trading Commission|url=|nameorg=Senate Confirms Gensler To Head CFTC|org=Yahoo News|date=May 19December 28, 20092007}}</ref>  [[Heath Tarbert]] is the chairman of the CFTC. He started his term in July 2019.
== History ==
Congress created the CFTC in with the [[Commodity Futures Trading Commission Act of 1974]] as an independent agency with the mandate to [[regulate]] [[commodity]] [[futures trading|futures]] and [[option]]s markets in the United States. (Prior to Before that time, futures markets were regulated by the [[Commodity Exchange Authority]] ([[CEA]]), a division of the [[U.S. Department of Agriculture]]). The CFTC's mandate has been renewed and expanded several times since 1974, most recently by the [[Commodity Futures Modernization Act of 2000]] ([[CFMA]]). Another reauthorization is due in 2008, with new issues including regulation in the energy and [[retail]] [[forex]] areas.<ref>{{cite web|name=Washington Watch|url=|org=Futures Industry Magazine|date=February 22, 2008}}</ref> In May of 2008, the U.S. Congress reauthorized the CFTC through the Fiscal Year 2013. On July 21, 2010, U.S. President Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act ([[Dodd-Frank Act]]), which expanded the CFTC's jurisdiction and authorities. [[William T. Bagley]], a lawyer, was appointed by President Gerald Ford as the first chairman of the Commodity Futures Trading Commission, serving from 1975-1978. As keynote speaker at a press dinner on the [[Chicago Board of Trade]]'s [[trading floor]] early in his chairmanship, he established one of the CFTC's oversight goals by telling the crowd something along the lines of that if there was anything "Mickey Mouse" going on in the industry, he would cut off Mickey's ears. Today, the CFTC assures the [[economic]] 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.  The CFTC introduced a new fintech initiative in May 2017 called [[LabCFTC]], with [[Daniel Gorfine]] at the helm. On December 15, 2017 the CFTC launched a virtual currency resource Web page,, as a repository for commission-produced resources about virtual currency (aka cryptocurrency).<ref>{{cite web|url=|name=CFTC Launches Virtual Currency Resource Web Page|org=CFTC|date=December 18, 2017}}</ref> [[File:The_CFTC_building_name_plate_in_Washington_D.C..jpg|450px|Image: 450 pixels]] == Regulatory Agreement with the European Commission ==The CFTC and the [[European Commission]] in February 2016 announced a "common approach" to clearinghouse requirements that would pave the way for European regulators to grant equivalence to U.S. clearinghouses. The agreement would allow European CCPs to do business in the U.S. more easily and U.S. CCPs to continue to provide services to EU companies.<ref>{{cite web|url=|name=Joint CFTC and European Commission Statement|org=Europa|date=February 10, 2016}}</ref> The deal will also result in millions of dollars of savings daily in the amount of collateral derivatives dealers are required to post.
Today, The European Commission will propose the CFTC assures the [[economic]] utility adoption of the [[futures]] markets an equivalence decision, which will need to be approved by encouraging their competitiveness and efficiency, ensuring their integrity, protecting market participants against [[manipulation]], abusive [[trading]] practices, and [[fraud]], and ensuring the financial integrity Member States of the [[clearing]] processEuropean Union. That vote is expected on Feb. 24. Through effective oversightThe Commission expects that U.S. CCPs will be recognized by June 21, the CFTC enables date when the futures markets to serve the important function of providing a means mandatory clearing obligation for [[price discovery]] and [[offset]]ting [[price riskinterest rate swaps]]starts to take effect.<ref>{{cite web|url=|name=FIA Welcomes US-EU accord on CCP equivalence|org=FIA|date=February 10, 2016}}</ref>
Lawyer [[William T. Bagley]] was appointed by [[President Ford]] as The agreement is the first chairman culmination of the Commodity Futures Trading Commission, serving from 1975-1978. As keynote speaker at a press dinner on the [[Chicago Board of Trade]]'s [[trading floor]] early in his chairmanship, he established one three years of sometimes bitter talks over common standards for the CFTC's oversight goals global derivatives markets mandated by telling world leaders after the crowd something along the lines of that if there was anything "Mickey Mouse" going on in the industry, he would cut off Mickey'2008 financial crisis.<ref>{{cite web|url= ears/0/b7f72eda-cfef-11e5-92a1-c5e23ef99c77.html#axzz3zn7ppGy9|name=EU and US strike derivatives regulation deal|org=The Financial Times|date=February 10, 2016}}</ref>
== How the CFTC Is Organized ==
The CFTC monitors markets and market participants closely by maintaining, in addition to its headquarters office in Washington, offices in cities that have [[futures]] [[exchange]]s — New York, Chicago, Kansas City, and Minneapolis.
==CFTC Budget & Enforcement Results==
===CFTC Annual budget===
*2018: $249 million
*2017: $250 million<ref>{{cite web|url=|name=Misconduct rife in derivatives - ex-CFTC enforcement chief|org=Reuters|date=March 23, 2018}}</ref>
*2016: $250 million<ref>{{cite web|url=|name=SEC, CFTC Funding Unchanged in Congressional Spending Plan|org=BNA|date=March 23, 2018}}</ref>
*2015: $250 million<ref>{{cite web|url=|name=SEC and CFTC Gain, IRS Loses in FY 2015 Budget Bill|org=McEldrew Young|date=March 23, 2018}}</ref>
*2014: $215 million
*2013: $215 million<ref>{{cite web|url=|name=Budget compromise eases swaps regulations on banks and increases CFTC Budget |org=Baker McKenzie|date=March 23, 2018}}</ref>
*2012: $205.2 million<ref>{{cite web|url=|name=CFTC Gensler asks for 49% increase in budget|org=Futures|date=March 23, 2018}}</ref>
*2011: $169 million<ref>{{cite web|url=|name=CFTC Budget Request Is Cut|org=Wall Street Journal|date=March 23, 2018}}</ref>
*2010: $168.8 million<ref>{{cite web|url=|name=Democrats, GOP spar over SEC, CFTC budgets
|org=Marketwatch|date=March 23, 2018}}</ref>
*2009: $146 million<ref>{{cite web|url=|name=CFTC Addresses 2010 Budget|org=Hedge Fund Law Blog|date=March 23, 2018}}</ref>
*2008: $111 million
===Total monetary sanctions for fiscal year===
*2017: $413 million<ref>{{cite web|url=|name=CFTC Releases Annual Enforcement Results for Fiscal Year 2017|org=U.S. Commodity Futures Commission|date=March 23, 2018}}</ref>
*2016: $1.29 billion<ref>{{cite web|url=|name=CFTC Releases Annual Enforcement Results for Fiscal Year 2016|org=U.S. Commodity Futures Commission|date=March 23, 2018}}</ref>
*2015: $3.2 billion<ref>{{cite web|url=|name=CFTC Releases Annual Enforcement Results for Fiscal Year 2015|org=U.S. Commodity Futures Commission|date=March 23, 2018}}</ref>
*2014: $3.27 billion<ref>{{cite web|url=|name=CFTC Releases Annual Enforcement Results for Fiscal Year 2014|org=U.S. Commodity Futures Commission|date=March 23, 2018}}</ref>
== Major Operating Units ==
'''Division of Clearing and Intermediary OversightRisk (DCR)'''The functions of the Division of Clearing and Intermediary Oversight include oversight of derivatives clearing organizations, [[financial integrity]] of registrants, [[customer fund]] protection, [[stock-index]] [[margin]], registration and fitness of [[intermediaries]], sales practice reviews, [[National Futures Association]] activities related to [[intermediaries]], and foreign market access by intermediaries.
'''Division of Market Oversight(DMO)'''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 regulatory functions of the Division include, among other things, [[market surveillance]], trade practice reviews and investigations, rule enforcement reviews, review of product-related and market-related rule amendments, and associated product and market-related studies.
'''Swap Dealer and Intermediary Oversight (DSIO)'''The Division of Swap Dealer and Intermediary Oversight oversees the registration and compliance of intermediaries and futures industry [[self-regulatory organizations]] (SRO's) including U.S. [[derivatives]] exchanges and the [[National Futures Association]] (NFA). Under Dodd-Frank, DSIO also will be responsible for developing and monitoring compliance with regulations addressing registration, capital adequacy and margin requirements for swap dealers and major swap participants.  '''Division of Enforcement(DOE)'''
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.S. District Courts. Alleged criminal violations of the [[Commodity Exchange Act]] or violations of other Federal laws which involve commodity futures trading may be referred to the Justice Department for prosecution. The Division also provides expert help and technical assistance with case development and trials to U.S. Attorneys’ Offices, other Federal and state regulators and international authorities.
'''Office of Chief Economist(OCE)'''
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.
In February of 2009, the CFTC announced it had launched, on a six-month trial basis, a new monthly report called “[[This Month in Futures Markets]].” The report, produced by the Commission’s Office of the Chief [[Economist]], was touted as something that could add [[transparency]] to the information the Commission provides the public concerning regulated [[futures]] markets by providing graphical and tabular displays on the Commission’s Web site. The report draws from the Commission’s [[Commitments of Traders reports]] data and displays various market statistics for 22 actively-traded [[commodity]] markets, including four each from energy, agriculture, metals, financials, soft commodities and two from livestock markets.<ref>{{cite web|url=|name=CFTC Launches New Monthly Report|org=U.S. Commodity Futures Commission|date=February 4, 2009}}</ref>
'''Office of the General Counsel'''
== Reports ==
The CFTC regularly issues various [[CFTC Market Reports|weekly, monthly or annual reports]],<ref>{{cite web |url=|name=Market Reports|org=U.S. Commodity Futures Trading Commission |date=April 9, 2008}}</ref>, including [[Commitments of Traders reports]]<ref>{{cite web |url=|name=Commitments of Traders|org=U.S. Commodity Futures Trading Commission |date=April 9, 2008}}</ref>, [[Cotton On-Call]]<ref>{{cite web |url=|name=Cotton on Call|org=U.S. Commodity Futures Trading Commission|date=April 9, 2008}}</ref>, [[Bank Participation in the Futures and Options Markets]]<ref>{{cite web |url= |name=Bank Participation in the Futures and Options Markets |org=U.S. Commodity Futures Trading Commission|date=April 9, 2008}}</ref>, [[CUSIPS Delivered for CBOT Treasury Futures Contracts]] (maintained by Chicago Board of Trade)<ref>{{cite web |url=,3181,404,00.html|name=CUSIPS Delivered for CBOT Treasury Futures Contracts |org=Chicago Board of Trade|date=April 9, 2008}}</ref>, [[Futures Industry Registrants by Location]]<ref>{{cite web |url= |name=Futures Industry Registrants by Location |org=U.S. Commodity Futures Trading Commission|date=April 8, 2008}}</ref>, and [[Financial Data of FCMs]]<ref>{{cite web|url=|name=Financial Data for Futures Commission Merchants|org=U.S. Commodity Futures Commission|date=April 9, 2008}}</ref> and others.
== Key People Commissioners ==*[[Gary Gensler]] Chairman*[[Mark Wetjen]], Commissioner*[[Jill E. Sommers]], Commissioner *[[Bart Chilton]],Commissioner*[[Scott D. O'Malia]], Commissioner*[[Ianthe Zabel]], Director, Office of External AffairsSee also [[CFTC Commissioners]]
In October 2011, Senate policy advisor Mark Wetjen was confirmed as the replacement to retiring commissioner and former CFTC acting-chairman [[Michael Dunn]] <refgallery>{{cite web|url=httpFile://|name=Senate confirms Mark Wetjen as new CFTC commissioner||date=March 7, 2012}}</ref> On Oct. 8, 2009, the U.S. Senate confirmed three nominees by unanimous consent to the [[U.S. Commodity Futures Trading CommissionHeath Tarbert]]. [[Bart Chilton]] and fellow CFTC Commissioner [[Jill Sommers]] were nominated for another term at CFTC. Scott O'Malia had been nominated the previous month to fill the vacant Republican post at the CFTC., Chairman It was announced on June 16, 2009 that [[Walter Lukken]], commissioner of the Commodity Futures Trading Commission at the time, as well as acting chairman of the Commission from June 27, 2007 until Jan. 20, 2009, would join [[NYSE Euronext]] on July 13, 2009 as senior vice president, global market structure, office of the general counsel.<ref>{{cite web|url=httpFile:|org=Businesswire/ NYSE Euronext|name=Press Release|date=June 16, 2009}}</ref> == News ==On Oct. 9, 2011, [[Matthew HunterBrian D. Quintenz]] was named head of surveillance for the CFTC. He filled the position as part of a reorganization at the regulatory agency., Commissioner On AugFile:CFTC_Commissioner_Rostin_Behnam. 22, 2011, the CFTC announced that it had named [[Gary Barnett]] to head the newly-created division of [[Swap Dealerjpg|swap dealer]] and intermediary oversight. The division was created in response to the commission's post-[[Dodd-FrankRostin Behnam]] responsibilities as regulator of the swaps market. <ref>{{cite web|url=|name=Futures Agency Hires a Top Derivatives Lawyer|org=New York Times|date=August 23, 2011}}</ref> On Apr. 17, 2009, the CFTC announced it was creating the Energy and Environmental Markets Advisory Committee, or EEMAC, to help prepare the agency for regulation of the U.S. [[carbon market]].<ref>{{cite web|url=|name=Commissioner Bart Chilton: U.S. Regulators Gearing-Up for Climate Change|date=April 17, 2009}}</ref>  Dan M. Berkovitz was named general counsel of the CFTC in June of 2009.<ref>{{cite web|url=httpFile://wwwDawn|name=Press Release|org=CFTC|date=June 2, 2009}}</ref>Berkovitz, who previously served as counsel to the [[Senate Permanent Subcommittee on InvestigationsDawn Stump]], had led investigations into [[energy market]]s, authored a number of law review and trade journal articles on the regulation of [[nuclear energy]] and wastes.Commissioner *On July 9, 2008, the CFTC announced that the regulator's Director of the Division of Enforcement, [[Gregory Mocek]] would leave the CFTC within 60 days to join as a partner in the energy and [[derivatives]] markets practice group at the private law office of [[McDermott Will & Emery]].<ref>{{cite web|url=httpFile://mweDan|name=Former CFTC Director Gregory Mocek Joins McDermott Will & Emery|org=McDermott Will & Emery|date=July 10, 2008}}</ref>  *Also on July 9, 2008 the CFTC said it had appointed [[Stephen JDan M. ObieBerkovitz]] as acting director of the division of enforcement to replace Mocek. Obie served as the regional counsel/associate director and regional administrator for the CFTC’s New York office.<ref>{{cite web|url=|name=Obie Replaces Mocek at CFTC’s Enforcement Div|org=Commodity Online|date=July 10, 2008}}Commissioner</refgallery>
See also [[CFTC Commissioners]]
==Terms of Service - Current and Former Commissioners==
{| class="wikitable"
|'''Term Available'''
|'''Dates of Service'''
|[[William T. Bagley]], (Chairman 04/15/75 – 11/15/78)
|04/15/75 – 04/15/80
|04/15/75 – 11/15/78
|[[Read P. Dunn, Jr.]]
||04/15/80 – 04/15/85
|04/15/80 – 11/13/81*
|[[Susan M. Phillips]], (Acting Chairman 05/28/83 – 11/16/83), (Chairman 11/17/83 – 07/24/87)
|04/15/80 – 04/15/85, 04/15/85 – 04/15/90
|11/16/81 – 07/24/87
|[[Wendy L. Gramm]], (Chairman 02/22/88 – 01/22/93)
|04/15/85 – 04/15/90, 04/15/90 – 04/15/95
|02/22/88 – 01/22/93
|[[Sheila C. Bair]]
|04/15/90 – 04/15/95
|10/05/94 – 06/16/95*
|[[David D. Spears]], (Acting Chairman 06/02/99 – 08/10/99)
|04/15/95 – 04/15/00
|09/03/96 – 12/20/01
|[[Walter L. Lukken]], (Acting Chairman 6/27/07- 01/20/09)
|04/15/00 – 04/15/05, 04/15/05 – 04/15/10
|08/07/02 – 07/10/09
|[[Scott D. O’Malia]]
|04/15/05 – 04/15/10, 04/15/10 – 04/15/15
|10/19/09 - 08/08/14
|'''Term Available'''
|'''Dates of Service'''
|[[Gary L. Seevers]], (Acting Chairman 12/06/78 – 05/03/79)
|04/15/75 – 04/15/79
|04/15/75 – 06/01/79
|[[Phillip McBride Johnson]], (Chairman 06/08/81 – 05/01/83)
|04/15/79 – 04/15/84
|06/06/81 – 05/01/83
|[[Robert R. Davis]]
|04/15/84 – 04/15/89
|10/03/84 – 04/30/90
|[[Sheila C. Bair]], (Acting Chairman 08/21/93 – 12/21/93)
|04/15/89 – 04/15/94
|05/02/91 – 10/04/94*
|[[Mary L. Schapiro]], (Chairman 10/13/94 – 01/26/96)
|04/15/94 – 04/15/99
|10/13/94 – 01/26/96
|[[Brooksley E. Born]], (Chairperson 08/26/96 – 06/01/99)
|04/15/94 – 04/15/99
|08/26/96 – 06/01/99
|[[William J. Rainer]], (Chairman 08/11/99 – 01/19/01)
|04/15/99 – 04/13/04
|08/11/99 – 01/19/01
|[[Sharon Brown-Hruska]], (Acting Chairman 08/24/04 – 07/10/05)
|04/13/99 – 04/13/04, 04/13/04 – 04/13/09
|08/07/02 – 07/28/06
|[[Jill E. Sommers]]
|04/13/04 – 04/13/09, 04/13/09 – 04/13/14
|08/08/07 - 07/08/13
|'''Term Available'''
|'''Dates of Service'''
|[[Read P. Dunn, Jr.]]
|04/15/75 – 04/15/78
|04/15/75 – 04/15/80*
|[[James M. Stone]], (Chairman 05/04/79 – 06/08/81)
|04/15/78 – 04/15/83
|05/04/79 – 01/31/83
|[[William E. Seale]]
|04/15/83 – 04/15/88
|11/16/83 – 09/01/88
|[[William P. Albrecht]], (Acting Chairman 01/22/93 – 08/20/93)
|04/15/88 – 04/15/93
|11/22/88 – 08/20/93
|[[John E. Tull, Jr.]], (Acting Chairman 01/27/96 – 08/25/96)
|04/15/93 – 04/15/98
|11/24/93 – 02/27/99
|[[Thomas J. Erickson]]
|04/15/98 – 04/13/03
|06/21/99 – 12/01/02
|[[Frederick W. Hatfield]]
|04/13/03 – 04/13/08
|12/06/04 – 12/31/06
|[[Bart Chilton]]
|04/13/03 – 04/13/08, 04/13/08 – 04/13/13
|08/08/07 - 03/21/14
|'''Term Available'''
|'''Dates of Service'''
|[[John V. Rainbolt, II]]
|04/15/75 – 04/15/77
|04/15/75 – 05/18/78
|[[David G. Gartner]]
|04/15/77 – 04/15/82
|05/19/78 – 10/05/82
|[[Fowler C. West]]
|04/15/82 – 04/15/87, 04/15/87 – 04/15/92
|10/06/82 – 01/20/93
|[[Barbara P. Holum]], (Acting Chairman 12/22/93 – 10/07/94)
|04/15/92 – 04/13/97, 04/13/97 – 04/13/02, 04/13/02 – 04/13/07
|11/28/93 – 12/09/03
|[[Reuben Jeffery III]], (Chairman 07/11/05 – 6/27/07)
|04/13/02 – 04/13/07
||07/11/05 – 06/27/07
|[[Gary Gensler]], (Chairman 05/26/09 - )
|04/13/07 – 04/13/12
|05/26/09 - 01/3/14
|'''Term Available'''
|'''Dates of Service'''
|[[Robert L. Martin]]
|06/19/75 – 06/19/76, 06/19/76 – 06/19/81
|06/20/75 – 08/31/81
|[[Kalo A. Hineman]], (Acting Chairman 07/27/87 – 02/22/88)
|06/19/81 – 06/19/86, 06/19/86 – 06/19/91
|01/12/82 – 06/19/91
|[[Joseph B. Dial]]
|06/19/91 – 06/19/96
|06/20/91 – 11/13/97
|[[James E. Newsome]], (Acting Chairman 01/20/01 – 12/27/01), (Chairman 12/27/01 – 07/23/04)
|06/19/96 – 06/19/01, 06/19/01 – 06/19/06
|08/10/98 – 07/23/04
|[[Michael V. Dunn]], (Acting Chairman 01/20/09 – 05/26/09)
|06/19/01 – 06/19/06, 06/19/06 – 06/19/11
|12/06/04 – 10/24/11
|[[Mark P. Wetjen]]
|06/19/11 – 06/19/16
&lowast; Held two separate terms of office.
== References ==
[[Category:Futures Regulators]]
[[Category:CFTC]][[Category:Alliance for Investor Education Members]]