Written by Pete Nicholls
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CFTC stands for the Commodity Futures Trading Commission. The mission of the CFTC is to protect market-users and the public from fraud, manipulation, and abuses practices which are related to the sale of commodity and financial futures and options. The Commodity Futures Trading Commission also strives to foster open, competitive, and financially sound futures option markets.

The Commodities Futures Trading Commission was created in 1974 by Congress, as an independent agency with the authority to regulate commodity futures and option markets in the United States of America. Over time, the agency's mandate has been renewed and expanded several times, with the most recent change being the Commodity Futures Modernization Act of 2000. Today, the Commodities Futures Trading Commission helps to regulate the economic utility of the futures market by encouraging competitiveness and efficiency, and ensuring their integrity, protecting market participants from manipulation, abusive trading acts, fraud, and ensuring financial integrity of the clearing process.

The Important Role of the CFTC

Through diligent oversight, the Commodity Futures Trading Commission enables the futures markets to serve the all important function of providing a means for price discovery and reducing price risk. If you are in the process of sitting for a securities exam, including futures and options, you may wish to brush up on the role of the Commodities Futures Trading Commission. There are sites online dedicated to the world of finance and the CFTC's position in this ever-changing world.

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