Unlike the proposed SEC panel, the CFTC’s must meet FACA requirements to balance the perspectives of members advising on regulatory matters. “In the decentralized finance space, I think it would be really valuable for folks in that industry to have a seat at the table,” Isaac said. In that case, Kalshi had argued that complying with state law would pose challenges, harm its users, or put its CFTC registration at risk. Kalshi Inc., whose CEO Tarek Mansour is among the charter nominees for the committee, could soon be banned from operating its sports prediction market in Massachusetts, after a judge last week granted the state attorney general an injunction to halt the platform’s sports wagering.

The Division of Market Oversight (DMO) is responsible for monitoring the exchanges and trading facilities used in derivatives trading. This division plays a pivotal role in supporting the CFTC’s mission to regulate the shakepay review derivatives markets effectively. By ensuring these entities operate ethically, the CFTC helps protect investor interests and promotes the overall stability of the derivatives markets. Beyond market oversight, the CFTC regulates various market participants, such as brokers, commodity pool operators, and trading advisors.

House-passed crypto market structure legislation, now awaiting markup in the Senate, would put the CFTC front and center overseeing digital assets, including exchanges run by the new committee members. “The creation of the new advisory committee gives you a great sense of Mike Selig’s priorities as chairman,” said Cheryl Isaac, a partner at K&L Gates LLP who counsels derivatives market participants on regulatory matters. This list categorizes all the financial assets covered by the CFTC position report, helping traders understand the wide range of markets involved. Also called “large speculators,” this group includes hedge funds, commodity trading advisors (CTAs), commodity pool operators (CPOs), and other large traders who engage in futures trading to speculate on price movements rather than to hedge. This also applies to financial products, such as interest rate futures.

Near around-the-clock trading

  • Central to the update is a streamlined interface designed for frequent use, reducing friction in everyday financial interactions.
  • The Division of Market Oversight (DMO) has regulatory responsibility for initial recognition and continuing oversight of trade execution facilities, including new registered futures exchanges, swap execution facilities, and swap data repositories.
  • Together, these trends point to a new phase of crypto adoption driven by real-world financial utility.Users can visit Bitget Wallet’s blog for more information.About Bitget WalletBitget Wallet is an everyday finance app designed to make crypto simple, secure, and usable in daily life.
  • The mission of the Commodity Futures Trading Commission is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation.
  • They are not directly exposed to the underlying assets and often take positions based on market speculation.
  • Sign up for the latest news, product highlights, economic insights and more subscriptions, tailored to your trading interests, delivered straight to your inbox.

Market Participants Division (MPD)The Market Participants Division primarily oversees derivatives market intermediaries, including commodity pool operators, commodity trading advisors, futures commission merchants, introducing brokers, retail foreign exchange dealers, swap dealers, and major swap participants, as well as designated self-regulatory organizations. To fulfill these roles, the Commission oversees designated contract markets, swap execution facilities, derivatives clearing organizations, swap data repositories, swap dealers, futures commission merchants, commodity pool operators, and other intermediaries. DMO reviews new applications for designated contract markets, swap execution facilities, swap data repositories, and foreign boards of trade and examines existing trading platforms and swap data repositories to ensure their compliance with the applicable core principles and other regulatory requirements, including system safeguards.

What is the CFTC (Commodity Futures Trading Commission) Position Report?

Since its inception in 1974, the agency has pursued a number of high-profile enforcement cases involving illegal, reckless, or abusive trading practices. For example, the agency has worked with the Department of Justice and the SEC on cases involving market manipulation and fraud. The CFTC also collaborates with other federal and international regulators to address cross-border activity and complex financial crimes. The agency was given authority to regulate large portions of the swaps market, previously an over-the-counter market with little direct federal oversight.

In the meantime, the advisory committee will provide a forum for Selig to engage with industries under the CFTC’s growing jurisdiction, including prediction markets that let people bet on the outcome of elections, sporting events, and more. The Senate Agriculture Committee’s version of the legislation includes language intended to boost the CFTC’s resources by directing it to regularly collect fees from digital commodity brokers, dealers, and exchanges, along with digital asset custodians. But Selig’s committee stands out, populated with the heads of companies that have pending business before the CFTC as it stands to gain vast new authority over digital assets and weighs its role policing prediction markets.

The Commodity Futures Trading Commission’s federal spending in FY 2024 was higher than in FY 1980.

Members of the committees represent specific industries, traders, futures exchanges, commodities exchanges, consumers, and environmental groups. The CFTC consists of five commissioners who are appointed by the president and approved by the Senate. Its goals include the promotion of competitive and efficient markets and the protection of investors against manipulation, umarkets review abusive trade practices, and fraud. The current, FY 2014 funding of $215 M did not keep up with CFTC’s increasing swaps market oversight and regulation, equivalent to tens of trillions of dollars in formerly dark market trading, according to outgoing Commissioner Bart Chilton in his last speech. DCR monitors the clearing of futures, options on futures, and swaps by DCOs, assesses DCO compliance with Commission regulations, and conducts risk assessment and surveillance.

SEC CFTC Crypto Harmonization: Landmark Joint Even…

The Office of International Affairs (OIA) provides technical support to international market authorities and advises the CFTC on global regulatory issues and initiatives. The division supervises intermediaries such as Futures Commission Merchants (FCMs), retail foreign exchange dealers, and commodity pool operators. The Division of Clearing and Risk (DCR) is responsible for ensuring the financial integrity of all derivative market transactions in accordance with the Commodity Exchange Act (CEA).

MEXC Expands RWA Offering with Zero-Fee GOLD & SILVER Futures

  • For example, the agency has worked with the Department of Justice and the SEC on cases involving market manipulation and fraud.
  • The Commodity Futures Trading Commission is an independent U.S. government agency that regulates the U.S. derivatives markets, including futures, options, and swaps.
  • Without such regulation and regulators, market participants could be subjected to fraud by unscrupulous individuals and, in turn, lose faith in our capital markets.
  • By extending relief to eligible managers from CPO and CTA registration requirements with respect to QEP-only offerings, MPD aims to reduce regulatory burdens while promoting liquidity in the commodity interest markets and facilitating hedging activities for investors.
  • This list categorizes all the financial assets covered by the CFTC position report, helping traders understand the wide range of markets involved.

OTI fosters innovation in CFTC’s regulatory oversight and mission critical functions by supporting the operating divisions and the Commission’s participation in domestic and international coordination. Office of Technology Innovation (OTI)The Office of Technology Innovation serves as the CFTC’s financial technology innovation hub, driving change and enhancing knowledge through innovation, consulting/collaboration, and education (ICE). OPA proactively conducts outreach and creates messages designed to raise awareness of the CFTC brand in order to promote public trust. Office of Public Affairs (OPA) The Office of Public Affairs is the Commission’s primary public-facing office that provides honest, timely and useful information across all communication platforms in order to serve internal and external stakeholders in all sectors to accomplish and facilitate the Commission’s mission. Treasury Department; negotiates cooperative arrangements; and provides technical assistance to foreign market authorities, including advice, training, and an annual meeting and symposium.

The mission of the Commodity Futures Trading Commission is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation. The QEP Exemption, originally adopted in 2003 under CFTC Regulation 4.13(a)(4), was intended to facilitate participation in commodity interest markets by collective investment vehicles and their advisers through the reduction of duplicative regulation for RIAs. The agency has limited oversight of spot crypto markets (the cryptocurrency itself), but it has taken enforcement actions against alleged fraudulent schemes and unregistered platforms operating in crypto. The CFTC also plays a role in regulating certain aspects of cryptocurrency markets—specifically, digital assets it classifies as commodities, including Bitcoin and Ether. What began largely as markets for agricultural commodities expanded into increasingly complex financial contracts tied to interest rates, foreign currencies, and equity indexes. The CFTC is led by five commissioners (including a chair), most of whom have extensive backgrounds in law, finance, or financial regulation.

They are not directly exposed to the underlying assets and often take positions based on market speculation. For instance, banks might use futures to hedge against interest rate fluctuations. Also known as “hedgers” or “physical traders,” commercial traders are those who have direct exposure to the risk of price fluctuations in commodities or financial products. The CFTC Position Report is a compilation of the position reports from various exchanges in the United States, gathered by the CFTC. These divisions work together to ensure market integrity and protect participants from unfair practices. Oversees clearing organizations and market participants to manage risks in the clearing process.

OCE plays an integral role in the implementation of new financial market regulations by providing economic expertise and cost-benefit considerations underlying those regulations. Division of Data (DOD)The Division of Data (DOD) is responsible for the Commission’s enterprise data strategy and data governance approaches. When the CFTC was created in 1974 with the enactment of the Commodity Futures Trading Commission Act, most futures trading took place in the agricultural sector. In the 21st century, identity verification has become a critical aspect of business operations, particularly for companies involved in commodities, exchanges, and trading.

The OIA also plays a crucial role in coordinating the Commission’s strategic approach to policies and initiatives in major foreign jurisdictions. The OIA lexatrade represents the Commission in public meetings, including the OTC Derivatives Working Group, the International Organization of Securities Commissions, and the OTC Derivatives Regulators Group. The division manages the Commission’s data strategy and governance, supporting the CFTC’s strategic objectives through collaboration with other divisions. The DOD ensures that decision-making within the CFTC is data-driven, enhancing policy-making accuracy.

Authors

The Commodity Exchange Act (CEA), 7 U.S.C. § 1 et seq., prohibits fraudulent conduct in the trading of futures, swaps, and other derivatives. Cointelegraph covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money. The selection, commissioning and publication of Features and Magazine content are not influenced by advertisers, partners or commercial relationships. Its goal is to create a more predictable environment in which market participants understand the applicable rules from the outset. Critics argue that its definitions may leave gaps, particularly in decentralized finance (DeFi), where projects often do not fit neatly into traditional regulatory models.

These include futures commission merchants, swap dealers, major swap participants, and large traders. The Division of Clearing and Risk (DCR) oversees derivatives clearing organizations (DCOs) and other market participants in the clearing process. Major financial firms including Robinhood, Webull, and Interactive Brokers integrated Kalshi’s event contracts into their platforms, making prediction trading as accessible to retail investors as traditional stock trading. Following this victory, prediction markets expanded aggressively into sports betting, climate change, and economic indicators. This forced Polymarket to “geo-block” U.S. users for nearly four years, even as it became the world’s largest prediction market by volume, processing over $20 billion in cumulative trades by late 2025.