The Commodity Futures Trading Commission (CFTC) is an independent U.S. federal agency that regulates the derivatives markets, including futures, options, and swaps. Established in 1974, the CFTC’s mission is to promote market integrity, transparency, and financial stability while protecting market participants and the public from fraud, manipulation, and abusive practices.

The CFTC oversees derivatives clearing organizations, swap execution facilities, and registers various market participants including futures commission merchants, commodity pool operators, and commodity trading advisors. The agency also publishes important market data including the weekly Commitments of Traders (COT) report and monitors large trader positions to prevent excessive speculation and market manipulation.

Real-world example: A commodity trading advisor must register with the CFTC and comply with reporting requirements, capital adequacy rules, and conduct standards before managing client funds in futures markets.