What is the Commodity Futures Trading Commission?
Definition of Commodity Futures Trading Commission: It is defined as an independent agency controlled by the government of U.S.A. This agency is charged with the regulating currency, commodity, derivatives and the financial options and futures. The main aim of CFTC is to guard the users of the market and the common public from the manipulation, fraud and offensive practices which relates to the auction of financial options and futures. CFTC was involved in the struggle to eradicate deception in the trading market by assisting the Forex brokers and giving advises to the customers regarding the Forex scams. The retail market or the Forex trading market were unregulated in U.S.A, but this situation changed with the invention of Reauthorization Act in the year 2008. In the year 2009, the CFTC eradicated hedging, limited border to nearly 100:1 and implement the initial in and out execution of the order. The CFTC has lately proposed new registration and capital needs for all the Forex trading brokers. Moreover, a new suggestion to lessen the limit influence to about 10:1 has been able to meet the rigid confrontation from the business.