The Commodity Futures Trading Commission by liwenting

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									The Commodity Futures Trading Commission (CFTC) was created by
Congress in 1974 as an independent agency with the mandate to regulate
commodity futures and option markets in the United States.


Regulations:

The CFTC reviews the terms and conditions of futures and option
contracts. To prevent market abuse and to enhance market operations, the
CFTC overseas the enforcement of exchange rules and conducts its own
surveillance of trading in the markets. It also has the power to order an
exchange to take specific action to restore an orderly market in any
contract that is being traded. The CFTC provides a mechanism for “price
discovery” and “hedging risks” through oversight regulations. The CFTC
also seeks to protect customers by a series of regulations like requiring
registrants to disclose market risk and past performance information to
prospective customers, providing financially secure trading places etc.


The National Futures Association (NFA) oversees the futures trading.
Companies and individuals who handle customer funds or give trading
advice must apply for registration through the National Futures
Association (NFA), a self-regulatory organization approved by the
Commission. It registers all categories of persons and firms dealing with
customers. It conducts a thorough background check of the applicant to
determine whether they should be precluded from conducting commodity
business.

								
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