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  • 8.4.5-FUTURES MARKETS-SUPERVISION BY CFTC

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  • Supervision by CFTC

     
     

    The United States Commodity Futures Trading Commission (CFTC) is charged with the supervision of trading in commodity futures. The CFTC reports directly to the United States Congress and its aim is to protect the trading public from possible abuses by the futures industry, such as manipulation of the market and other deceptive practices that might prevent the market from correctly reflecting supply and demand factors. It also seeks to ensure that the members of the exchange are financially viable.

    Incidentally, exchange bylaws, rules and regulations are statutory and therefore have the force of law. The provisions of the CFTC Act require every intermediary who deals with members of the public investing in futures to be registered with the National Futures Association, a self-regulatory body created by the Act. The  ICE exchanges, through the use of electronic surveillance and professional personnel, actively monitor trading activity and enforce trading rules and regulations.