Federal Trade Commission (FTC)

Updated 2026-05-17

The Commodity Futures Trading Commission (CFTC) is an independent agency of the United States government that regulates the U.S. derivatives markets, including futures, options, and swaps. Its mission is to foster open, transparent, competitive, and financially sound markets, and to protect market users and the public from fraud, manipulation, and abusive practices.

Role and Functions

The CFTC's primary functions include:

• Market Oversight: Regulating designated contract markets (exchanges), derivatives clearing organizations, and swap execution facilities.
• Participant Regulation: Registering and overseeing various market participants, including futures commission merchants, commodity pool operators, commodity trading advisors, and swap dealers.
• Enforcement: Investigating and prosecuting violations of the Commodity Exchange Act and CFTC regulations.
• Market Integrity: Working to prevent market manipulation and other abusive trading practices.

Impact of the Dodd-Frank Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), enacted on July 21, 2010, significantly expanded the CFTC's regulatory authority, particularly over the previously unregulated over-the-counter (OTC) swaps market. The CFTC is defined as a "primary financial regulatory agency" under the Dodd-Frank Act (Sec. 2(12)(C)).

Key provisions of Title VII, "Regulation of Over-the-Counter Swaps Markets," brought a vast portion of the swaps market under federal oversight, including new requirements for:

• Clearing: Mandating central clearing for many standardized swaps (Sec. 723).
• Execution: Requiring certain swaps to be traded on regulated platforms (swap execution facilities) (Sec. 733).
• Reporting and Recordkeeping: Establishing comprehensive data reporting to swap data repositories (Sec. 727, 728).
• Registration and Regulation: Requiring registration and imposing business conduct standards for swap dealers and major swap participants (Sec. 731).
• Enhanced Enforcement: Title VII also strengthened the CFTC's enforcement powers, including restitution remedies (Sec. 744) and whistleblower incentives (Sec. 748).

Consumer Protection Responsibilities

While the CFTC's primary jurisdiction is over commodities and derivatives, it also has consumer protection responsibilities within its scope. Following the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), some of its consumer protection authorities related to financial products and services were transferred to the Consumer Financial Protection Bureau (CFPB), particularly in areas where there was overlap with the CFPB's broader consumer protection mandate.

Citation: PUBLIC LAW 111–203—JULY 21, 2010, Title VII, Sec. 2(6), Sec. 2(12)(C)