Who Regulates The Commodity Futures And Options Business?
There are two organizations responsible for regulating the commodity futures and options business: • Commodity Futures Trading Commission (CFTC): The CFTC regulates commodity futures and options at the federal level. It is responsible for protecting customers who use these markets and monitoring such markets to prevent commodity price distortions and market manipulations. Futures contracts may only be bought and sold on exchanges licensed by the CFTC. • National Futures Association (NFA): The NFA is the industry’s congressionally authorized self-regulator. It complements federal regulation with extensive rules and regulations governing the conduct of their members: floor brokers, floor traders, and member firms. Firms and individuals who wish to handle customer funds for the purpose of buying or selling futures or options on futures, must apply for registration and membership with the NFA. The same holds true for those firms and individuals who wish to engage in the business of offerin
