• What is the CFTC

  • Understanding What Is The CFTC

    The CFTC or "Commodity Futures Trading Commission" is an appointed group of financial experts established to manage the sanctity of all markets [1].

    It is an establishment that is well-regarded and holds an important role in maintaining the market and how it is running at all times.

    Here is more on the subject for those who are analyzing the CRTC's role in the financial world and how it provides meaningful value in the short and long-term. Without its role, the markets would not be as they are right now and therefore, it is essential for the CRTC to remain on top of things.

  • So, what is the CFTC responsible for?

    It is going to begin by establishing transparency in the market. The members of this commission are responsible for assessing what is taking place in the market and then removing any issues that could cause trouble down the road.

    This is done with the promise of maintaining competition and letting the market flourish at the same time.

    Transparency is a must for the market to do well and that is a responsibility this commission has to maintain at all costs.

    It works with all parties to ensure the market does not falter and remains a substantial economic power.

  • Emphasis On Removing and Spotting Fraud

    Fraud is a troubling reality that does not dissipate over time. It is something that has to be managed, and someone has to steer the ship in the right direction.

    So, who does this?

    It is the CRTC that takes up this responsibility and ensures all fraud-related trouble is removed and dealt with in a legally sound manner. They use information found in the "Commodity Exchange Act" to set up all legal cases and set rulings on what can and can't be done [2].

    The vision for this commission is to let the market work out and remain steady.

  • Protect Users

    Those who are going to be using the market and working within it require an even playing field or things can immediately fall apart. To determine any lingering security concerns in the market, the CRTC is called into action to run data analysis and any other investigation it can.

    Upon the competition of this analysis or investigation, they can release findings and carry out changes as needed.

    This ensures all abusive practices are not being implemented, and market users don't get into trouble for the wrong reasons when they should be protected at all costs.

  • Enable Competition

    Competition is important in the market. If there is no competition or a "monopoly" begins to shape up, it takes control and removes economic sustainability out of the equation. The CRTC ensures this does not take place, and they can nip it in the bud beforehand.

    Competition has to be maintained for the market to remain sufficient and active.

    Proactive analysis is carried out on any lingering issues ensuring poor competitive standards don't become a troubling reality for the market.

    This is the answer to "what is the CFTC?" for those who are wondering. It is a powerful commission that has been set up to helm the market and keep it going in the right direction. Without the commission, the market would not be able to run as seamlessly as it does right now.

    The goal is to develop, protect, and monitor the market with the help of modern techniques and technology and maintain the sanctity of what is in place.

    What is the CFTC's main controlling power? Who appoints them? They come from the United States Senate and remain an essential part of the system [3].

  • References

    1) http://www.cftc.gov/about/missionresponsibilities/index.htm

    2) https://www.law.cornell.edu/uscode/text/7/15b

    3) http://www.agriculture.senate.gov/issues/cftc-reauthorization