About CFTC Enforcement and Compliance Lawyers
If anyone is found to have committed violations, or potentially done so, of CFTC regulations, the CFTC can impose penalties on the offenders. Penalties can include bans, fines or even criminal prosecution. The CFTC, also known as the United States Commodity Futures Trading Commission, performs investigations when it believes its laws and regulations have been violated and subsequently prosecutes for those violations. The Dodd-Frank amendment has made the CFTC’s authority even greater than ever, which makes getting the help of a CFTC investigation enforcement attorney that much more important.
What are Futures and Options?
Generally speaking, the CFTC protects futures and options. These two things are contracts that revolve around the ability to buy or sell an asset at any given time in the future. Futures contracts make the owner obligated to buy or sell an asset while options contracts give the owner the right to buy or sell assets.
There is an entire market that revolves around the trading of both futures and options contracts. Overall, businesses are the most likely to participate in these things to help save money on commodities as there is always a high possibility of prices of commodities increasing in the future.
What are the Mission and Responsibilities of the CFTC?
The CFTC’s mission is to promote the development and growth of futures and options trading. It aims to make the market fair and competitive to the public and protects against any abusive, fraudulent practices.
The CFTC has the responsibility of regulating the market and ensuring that the Commodities Exchange Act (CEA) is fairly enforced. The CEA dates back to 1936, which was many years prior to the establishment of the CFTC. The CEA is a revised version of 1922’s Grain Futures Act. Back when the Grain Futures Act existed, the Department of Agriculture held responsibilities over the trading and commodities market. However, the market changed over the years and includes many different commodities, including gas, copper and gold.
What is the History of the Future Trading Industry and CFTC?
Commodities trading began back in the 1860s, long before the CFTC existed. Generally, the main area of commodities traded fell under the category of agriculture. As a result, the Grain Futures Act regulated the market. In 1936, it changed to become the Commodities Exchange Act, which still exists today. Newer commodities came into the market as a result.
Then, in 1974, the CFTC was founded and took responsibility of the Department of Agriculture by administering the future trading market. President Barack Obama gave the CFTC greater authority of the market as a result of 2008’s financial crisis through the creation of the Dodd-Frank Act.