Futures trading has been a long-established trading model within the financial market sector since its inception in the late 1970s. Before investing in lucrative commodity futures, it is essential to understand how our trading platform can provide optimal trading solutions to prospective investors. Here, we’ve got more information about the futures trading on our platform and the relevant regulations.

 

What Is the Commodity Futures Trading Commission (CFTC)?

The Commodity Futures Trading Commission (CFTC) is a U.S independent federal agency first established in 1974 by the Commodity Futures Trading Commission Act. The CFTC is in charge of regulating respective commodity futures and the options markets. The CFTC is governed by five distinctive committees, overseen by a commissioner appointed and approved by the senate and the United States president. The five committees solely focus on energy, global markets, agriculture, technology, and environmental markets in cooperation with the SEC and the CFTC. These committees comprise people representing consumers, traders, futures exchanges, and commodities exchanges.

 

How Is Futures Trading Regulated?

The Commodity Exchange Act (CEA) and the CFTC are responsible for regulating commodity futures and trading across the United States. Within the exchange, self-regulatory organizations (SRO’s) comply with the instated CFTC regulations and principles to safeguard market participants from fraudulent activity while adhering to equality and integrity. 

The futures exchanges marketplace features various index futures, commodities futures, and futures contracts available to individuals looking to trade. A futures contract is an agreement to buy or sell a specific amount of commodity at a set price and date in the future. These commodities include oil, metals, grains, foods, animal products, and financial instruments, including foreign and national currencies. 

The SEC enforces the trading and selling of mutual funds, stocks, and bonds but not the futures trading regulation. The CFTC administers the laws that govern the contract market, commodity products, and trading markets. The futures trading market is regulated under constant surveillance during each exchange. To trade or provide advice about futures, individuals need to register under the National Futures Association (NFA), an independent regulator for public futures trades, or register with us.

 

Why Is Regulation Important in Futures Trading?

With everyday trading comes the risk of falling prey to fraudsters and unscrupulous brokers. The CFTC plays a vital role in regulating the futures markets with compliance measures, rules, and surveillance for each performed exchange activity. The governing authority’s (CFTC) main obligations are to protect market participants from market abuse, fraud, and manipulation by safeguarding their best interests and upholding standards to ensure financial integrity in all exchanges. 

Some of the core values that the CFTC maintains include commitment, clarity, teamwork, and forward-thinking to help promote resilience and transparency within U.S derivatives markets.

We encourage interested investors to contact us so they can begin their path of successful futures commodity trading. At Targets Trading Pro, we provide 10 years of professional expertise as well as our state-of-the-art algorithmic trading platform. We feature live and transparent futures trading systems to boost profit and maximize trading efficiency. Try Targets Trading Pro today!